Carol Alexander, a renowned cryptocurrency expert and a professor at the University of Sussex, has recently shared her insights on the future of Bitcoin, remaining optimistic about its trajectory. Despite the digital currency’s notorious volatility, Alexander anticipates that Bitcoin will eventually climb to a noteworthy $100,000.
Addressing the recent market fluctuations, Alexander dismissed concerns surrounding Bitcoin’s sharp price drops that are often seen as indicators of instability. She explained that these fluctuations are typical in the Bitcoin trading environment, and they do not necessarily signal a decrease in the cryptocurrency’s long-term potential.
“I’m not sure right now because it was down 5% yesterday, which is not unusual for Bitcoin,” Alexander stated. She went on to explain that the highly leveraged nature of Bitcoin trading often results in significant price swings.
She noted, “There were a lot of long positions liquidated yesterday,” referring to the process where leveraged positions are automatically closed when their margins reach zero, leading to a cascading effect. Alexander elaborated, “On some unregulated exchanges, you can have leverage as high as a hundred times. So, as those positions are liquidated, you see these cascading liquidations.”
However, despite these liquidations, Alexander highlighted that the leverage ratio remained high on both the long and short sides of the market, indicating that trading activity is far from slowing down.
Looking forward, Alexander pinpointed $92,000 as a pivotal support level for Bitcoin, cautioning that a dip below this threshold could delay its progress towards the $100,000 mark. She suggested that this critical turning point might coincide with a significant political or market event.
“If it falls below that, then I think maybe we should wait until the inauguration,” she said, indirectly referring to January 20. Alexander proposed that “the powers that be” might strategically time Bitcoin to hit the $100,000 milestone by that date.
In a world where cryptocurrency is increasingly gaining recognition and validity, Alexander’s predictions provide a hopeful outlook for Bitcoin enthusiasts. However, it’s vital to remember that as with all investments, the future of Bitcoin is not set in stone, and any potential investor should proceed with caution.
*This is not investment advice.
