The main reasons why Bitcoin (BTC) price may reach $40,000 in April
Crypto analyst George Tung shares his thoughts on why Bitcoin bulls are making a strong comeback in April. According to George, traditionally Q1 of a year is not the best for businesses. But in Q2 things start to improve, followed by better performance in Q3 and a strong Q4.
George supports his analysis by referring to the S&P 500 index, which has shown a green trend from 2012 to 2020, with 2022 being an exception. Although Bitcoin’s trend is mixed, the cryptocurrency has seen a largely green trend in April since 2016.
Bitcoin: The Superior Asset
George claims that Bitcoin is the superior asset, having outperformed both gold and silver since MicroStrategy invested in it in August 2020, rising 137%. He believes that Bitcoin cannot be replaced and is the dominant asset in the crypto space.
Bitcoin as a hedge against inflation
George emphasizes that Bitcoin is a hedge against inflation, which is a silent tax on money. Inflation reduces purchasing power and affects all fiat currencies over time.
Conditions: US May Be Hit by Potential Hyperinflation – Will the Price of Bitcoin (BTC) Soon Reach $100,000?
However, the Bitcoin price has skyrocketed and will continue to do so, preserving wealth in the process. George predicts that institutions will continue to buy more Bitcoin and that it will reach $1 million by 2030.
Bank of America and Fidelity’s Bitcoin investment
Bank of America and Fidelity, two of the world’s largest asset managers, invested $75 million in MicroStrategy shares in the first quarter. George believes this indicates their desire to have more exposure to Bitcoin.
Easter: How did BTC perform?
In a separate analysis, George noted that Bitcoin is repeating history, but that’s a good thing. Historically, Bitcoin’s price has been positively affected by the Easter holiday.
George points to the on-chain metrics to support his claim, with the SOPR (Spent Output Profit Ratio) suggesting good things for Bitcoin’s future. When the SOPR is below one, it is not ideal, but when it is above one, it is generally a positive indicator.
Bitcoin price forecast
Bitcoin’s price has been hovering around the $28,000 mark for some time now, but according to George, once the $28,700 resistance level is broken, we could see a significant price increase to between $40,000 and $45,000. The king coin was worth $28,319 at the time this article was written. While it is possible that the price could fall again, George is optimistic that the momentum will continue.
Banks’ impact on Bitcoin’s future growth
Banks reporting poor earnings, more liquidity problems and deposit concerns could all play a role in Powell’s decision-making as the Federal Reserve chairman decides future interest rates. Regardless of the outcome, however, Bitcoin’s trajectory is positive, repeating history in a good way.
Also Read: Bitcoin and Ethereum Will Explode Driven by Global Banking Crisis; Experts Unanimously Agree – Coinpedia Fintech News
What About You – Do You Think Bitcoin Will Reach $1 Million By 2030?
