It is a momentous day on the cryptocurrency timeline today as crypto assets pass US$3 trillion (A$4.05 trillion) in total value. The milestone moment in history comes as the price of Bitcoin (CRYPTO: BTC), Ether (CRYPTO: ETH), and other digital currencies hit new record highs.
At the time of writing, the largest cryptocurrency by market capitalisation, Bitcoin, is fetching A$91,201. Meanwhile, Ether is being swapped at a price of A$6,465.
For context, the entire crypto ecosystem is now worth more than the world's most valuable listed company, Microsoft Inc (NASDAQ: MSFT). In terms of assets, the contentious digital investment is now only second to gold in size, at US$11.6 trillion.
What's the next move for crypto?
While there are still plenty of cryptocurrency sceptics in the world, the last month or so has seen numerous developments fuelling positive investor sentiment. These have mainly involved Bitcoin — though, in the crypto space often a rising tide lifts all boats.
In Australia alone, this month has already seen the announcement of the Commonwealth Bank of Australia (ASX: CBA) making crypto services available via its CommBank app. Secondly, the very first Australian cryptocurrency exchange-traded fund (ETF) landed on the ASX last week. These announcements marked further institutional acceptance.
The continuation in the crypto bull market has been relentless over the past 12 months. In fact, Bitcoin has returned 294% in the past year. Even more impressively, Ether has delivered more than a 10X return over the same timeframe.
Understandably, investors and market participants are wondering where to from here. Unfortunately, none of us can see into the future. Though, some analysts' forecasts have painted a rosy picture for the near term.
According to Adrian Zduńczyk, known as Crypto Birb on Twitter, Bitcoin could be set for a rally towards US$80,000 (~A$108,000) in the near future. At the same time, Zduńczyk has pencilled out a price target of US$20,000 for early 2022.
Likewise, executive director at crypto fund ARK36, Mikkel Mørch, explains why there is potential for further upside in Bitcoin:
As Bitcoin exchange balance is at a 3 year low while long-term holder supply is at an all-time high, there are simply too few bitcoins available to keep up with the demand.
