Why experts are bullish on Bitcoin to hit $75k?

The Russia-Ukraine war, inflation, rising interest rates, and slower economic growth have impacted investors' sentiments. Increasing transactions by bitcoin whales is a sign of rising demand from investors and according to a Bank of America survey, a quarter of fund managers anticipate the biggest crypto’s price to pass $75,000 in one year. At the same time, many are predicting it will remain relatively flat, fluctuating between $50,000 and $75,000.

Most altcoins have gained more than decent growth. It seems like traders are redistributing their funds between altcoins to avoid Bitcoin exposure. Shiba Inu, Polygon, Solana, and Compound have gained more than decent growth after they were listed on the trading platform Robinhood

A survey found that long positions on bitcoin were more crowded than those on ESG (environmental, social, and governance). In May and January this year, long bitcoin was named the most crowded trade. Bitcoin will recover from the current crypto crash to hit a fresh all-time high of $75,000 by the end of 2022.

Experts such as Nigel Green of deVere Group says, the world’s largest digital currency by market capitalisation fell below the $40,000 level several times, weighing down the wider cryptocurrency sector. The total cryptocurrency market is currently $1.89 trillion, down 11% compared to the week before. He explains: “Bitcoin briefly dipped below $40,000, tracking losses in global equities. The correlation with stock markets is currently especially pronounced with the tech-heavy Nasdaq 100 index, which is in tandem more than ever.

It seems investors are reducing their exposure to risk-on assets, including stocks and crypto, due to heightening concerns about inflation and slower economic growth. There’s a growing sense that central banks – including the U.S. Federal Reserve, the Bank of England and European Central Bank - will be unable to achieve a ‘soft landing,’ that’s to say curbing inflation without precipitating a recession.” At the moment, Bitcoin is being regarded as a risk asset, alongside equities. But this might all change again as its primary characteristics remain the same.

As inflation continues are going to run hot in the coming months, the price of Bitcoin will be supported as investors look to protect their purchasing power by moving out of cash and into store of value investments. Bitcoin is regarded as a credible hedge against inflation for three key reasons. First, its scarcity – a limited supply of 21 million means that higher demand will push prices up. Second, its accessibility – as an asset it has value and is accepted by the market. And third, its durability – Bitcoin will continue to attract more demand over time.”

The crypto’s other inherent values of being a viable decentralised, tamper-proof, unconfiscatable monetary system have also “been laid bare in recent weeks” due to geopolitical issues, says an expert. For these reasons, Nigel Green remains ultra-bullish on Bitcoin. The case for Bitcoin and cryptocurrencies is becoming stronger. Therefore, we expect Bitcoin will recover from the current crypto crash to hit a fresh all-time high of $75,000 by the end of 2022.