Holiday cheer as bitcoin bounces from its lowest level since May

After a fairly lackluster performance over the last four weeks, bitcoin investors may have something to cheer coming into Christmas with the cryptocurrency surging to its highest level in a month on Sunday.

For the first time since late November, bitcoin passed $7600, up over $1,000 from a $6538.01 Dec. 18, bitcoin’s lowest price since May, seeing a possible return of a bull market.

The exact why bitcoin is heading up is open to speculation but at the very least market sentiment may have changed with investors seeing bitcoin as a buy as it slumped to lower levels during December.

The forecasts going forward are, as always all over the place. On the more conservative side, Amsterdam Stock Exchange trader Michaël van de Poppe predicts the outlook for the week ahead is positive and that he would not be surprised if bitcoin pushed through $7,800 to $8,000 late in the week.

Mike McGlone, the senior commodities strategist for Bloomberg Intelligence sees bitcoin rising to $10,000 in the new year, noting that “bitcoin should continue to advance in a consolidating bull market, in our view, with maturation of the first-born crypto in the next decade the primary distinction vs. the current one.”

Others, though are predicting even high rates at least in the next couple of years. Famed venture capitalist Tim Draper is predicting bitcoin will surge to $250,000 by the end of 2022 or 2023 with the rally starting in May 2020 following the “halving event.” The bitcoin “halving” is a process wherein the reward for mining bitcoin is halved making the production of new coins more difficult. Traditionally…

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