With Bitcoin nearing its record price around $20,000 set in 2017, George McDonaugh Managing Director and Co-Founder of publicly listed cryptocurrency and blockchain investment firm KR1 provides a short comment on the likelihood of the digital asset hitting a new all-time high.
“Bitcoin has spent 0.32% of its life at 16k and above, which means there were relatively very few buyers at that level back in 2017. Also the space was smaller in terms of participants. This correlates to there being very few sellers at this level now, meaning there isn’t a strong resistance band for the bulls to push the price higher.
“However, $20,000 is a far more a psychological barrier, so it is likely to be ‘hodlers’ (people holding Bitcoin forever) that may derisk at that level and produce some selling pressure. But given the comparatively small delta between where we are now at $16,000 and $20,000, it’s likely hodlers will hold out until Bitcoin gets closer to its all-time high.
“The narrative from Central Banks around the adoption of digital currencies and major investment institutions diversifying into Bitcoin is driving the current interest and bull market, a narrative we expect to continue in future.
“Be warned though, as we’ve seen so many times in the past, Bitcoin can surprise and if going by the cycle trading were due a pull-back soon. I expect we don’t reach $20,000 in this current move and consolidate before going again and breaking through in early 2021. That’s how bitcoin has liked to behave in the past.”
About George McDonaugh and KR1 plc
George has been involved in the industry since 2011 and is also a founding member of the Multichain Asset Managers Association that represents ecosystem players interested in working towards a new vision for asset management using blockchain technology. George is a regular speaker and advocate for the use of blockchain technology to traditional investors and institutions.
KR1 is a leading digital asset investment company supporting early-stage decentralised and open-source blockchain projects. Founded in 2016 and publicly traded in London (KR1:AQSE), KR1 has built a notable reputation for generating significant returns by investing in many key projects that are designed to power the decentralised platforms and protocols emerging to form new internet infrastructures.
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