Bitcoin Proves European Central Bank Wrong: Hits All-Time High Against Euro

Bitcoin (BTC), the leading cryptocurrency, continues its remarkable bullish run, surpassing the $65,000 mark on Monday and inching closer to its all-time high of $69,000. Simultaneously, BTC has achieved a significant milestone against the Euro as economic concerns escalate across Europe. 

Despite previous skepticism from European authorities, Bitcoin has soared to an all-time high of $60,200 against the official currency of the European Union (EU). This achievement is noteworthy, considering the Euro’s recent depreciation against Bitcoin, as depicted in the chart below.

On February 22, the European Central Bank (ECB) expressed doubts about Bitcoin’s potential as a global decentralized digital currency, citing its “limited use” for legitimate transactions.

The ECB argued that Bitcoin had failed to live up to its initial promise of becoming a widely accepted payment or a reliable investment. It also highlighted the alleged “inconvenience, slowness, and high costs” of Bitcoin transactions.

The ECB further raised concerns about the “history of price manipulation” and fraudulent activities associated with Bitcoin. It attributed these issues to the absence of a “fair value” for the cryptocurrency. However, despite the ECB’s reservations, Bitcoin has experienced a surge in institutional and retail investments. 

The recent approval and success of Bitcoin spot exchange-traded funds (ETFs) have played a pivotal role, attracting inflows of over $7.3 billion to the BTC market within just two months, prompting renewed bullish sentiment in the industry.

Bitcoin’s success extends beyond its achievement against the Euro. The cryptocurrency has reportedly reached all-time highs against the currencies of fourteen G20 countries, including the Japanese Yen, British Pound, Australian Dollar, Canadian Dollar, Chinese Yuan, New Zealand Dollar, Swedish Krona, and South Korean Won. 

Reports of an impending surge in Bitcoin’s value have sparked excitement among investors, as market expert Gert Van Lagen predicts another substantial price increase. 

With BlackRock’s renewed interest in purchasing Bitcoin and a reported scarcity of the cryptocurrency on over-the-counter (OTC) desks, conditions seem favorable for a straight pump to $100,000. Van Lagen emphasizes that with limited resistance to upward movement, the potential for exponential growth appears limitless.

The analyst suggests that continued buying by spot ETFs at a rate of $900 million per day, coupled with a shallow market depth of approximately $20-40 million, can drive significant price surges. 

Van Lagen’s analysis also suggests that based on historical cycles, once the 1.618 Fibonacci extension of the 2018 bear market is breached, Bitcoin peaks within 2-3 months at the 2.272 extension. Currently, the 2.272 extension projects a potential peak of $207,000.

Looking back at previous cycles, notable patterns emerge. 2013 Bitcoin topped within six weeks at the 2.272 extension of the 2011 bear market after breaking the 1.618 extension. 

Similarly 2017, Bitcoin peaked within three months at the 2.272 extension of the 2015 bear market, following a breakthrough of the 1.618 extension. 

Bitcoin has surpassed the 1.618 extension of the 2018 bear market in the current market. Van Lagen anticipates that Bitcoin will likely peak at the 2.272 extension of the 2018 bear market, estimated at around $200,000. 

Currently, the largest cryptocurrency on the market is trading at $65,300, up over 5% in the last 24 hours and over 27% in the last seven days.

Featured image from Shutterstock, chart from TradingView.com