Analysts at Bitwise say that Bitcoin could be on track to hit $80,000, and they are still optimistic about the future of the cryptocurrency. The good news is that the U.S. government has given Bitfinex permission to get back a lot of the money that was lost in a well-known hack in 2016. A better view for the market and the return of stolen goods have both made people in the crypto community feel better, setting the stage for a possible price surge.
Bitwise's prediction is based on the idea that institutional demand will keep rising as more traditional buyers enter the crypto space. Recent legal clarity and the expected approval of a Bitcoin ETF are seen as two of the main things driving Bitcoin's price growth. Bitwise thinks that these things, along with the fact that more people are using Bitcoin as a way to keep value, could push the price of the cryptocurrency up to $80,000 in the next few months.
At the same time, Bitfinex's return of funds that had been stolen has made the market even more hopeful. In 2016, the exchange had one of the worst security breaches in crypto history, which cost them 119,756 Bitcoin. Since the U.S. government is letting Bitfinex return a big chunk of these funds, the company should be able to improve its balance sheet. This could make investors and traders more confident in the platform.
These events change the story that people tell about Bitcoin. In recent months, the crypto sector has been hurt by regulatory attention and price volatility. However, recent positive regulatory developments and the resolution of historical problems like the Bitfinex hack are seen as opening the door for renewed bullish momentum.
Bitcoin is staying the same for now, and investors are keeping a close eye on key support levels as the cryptocurrency gets closer to its next possible breakout. If things keep going well and more institutions become interested in Bitcoin and Bitfinex recovers funds that were stolen, the price of Bitcoin could reach new highs soon.
