Since Bitcoin hit its all-time high of $20,000 in December 2017, the crypto leader has been stuck in a bearish trend. Since hitting $20,000, BTC has lost over 80% of its value and for months analysts have been trying to predict when this bearish winter will come to an end.
In addition to predicting when the trend will end, they need to predict what triggers the rally. For this, there has been contrary opinion. Some analysts believe the SEC approving the first Bitcoin ETF is the key while others believe adoption and regulation are the key triggers required.
One analyst, however, holds a rare and very contrary opinion, one that many will find hard to believe.
According to Garrick Hileman, head of research at Blockchain and research associate at the London School of Economics, the next Bitcoin rally will be triggered by Central banks accumulating Bitcoin.
Central Banks To Play A Vital Role In Bitcoin Breaking Out Of Bearish Winter
Bitcoin has been referred to as digital gold due to its sourcing, making it scarce, and its use as a store of value. Because of its feature as a store of value, Hileman believes that central banks could begin accumulating Bitcoin, seriously affecting its price.
“The question is though, who will be buying digital gold? If central banks start to accumulate bitcoin, that could be hugely impactful on bitcoin’s price.”
Hileman stated in AltFi’s Crypto For Earthlings podcast.
Depending on which central bank begins this move, accumulation by big central banks such as the U.S. Federal Reserve or the European Central Bank could see demand for Bitcoin shoot up and with it prices.
This could easily see Bitcoin hit its all-time high and further reach some of the bold predictions going around among analysts (ranging from $100,000 to the bold call by John McCafee and IBM crypto lead Jesse Lund of $1,000,000).
Bitcoin Price Watch
At the time of press, Bitcoin is coming under fire after dropping below the $4,000 position. This comes after trading above this position for more than a week and showing an unprecedented level of stability.
Resistance around $4,100 has prevented the coin from retesting the $4,200 position, a key position that could see the coin break its short term bearish trend.
The leader is now set to find stability above $3,900, where the bulls can consolidate and accumulate enough bullish volume for the next big price move.