Bitcoin (BTC) could continue to rise according to Marion Labouré, financial analyst at Deutsche Bank. The world’s largest cryptocurrency has been in a bear market since November 2021 and the trend doesn’t seem to be changing. However, this analyst believes that the price of Bitcoin could continue to rise in the future depending on what people consider this virtual currency to be worth.
Bitcoin could continue to rise
Despite the past six months for Bitcoin, the virtual currency could continue to grow in the years to come. According to Marion Laboure, it is the people who give value to Bitcoin and those who could drive up the price of this virtual currency. During an interview, she compared Bitcoin to diamonds and how their price has risen over the past 50 years.
Laboure explained that it is difficult to understand the value of Bitcoin. Indeed, there are things that only exist because people believe in them. Therefore, Bitcoin could only continue to exist as long as the market believes in the solutions it offers and the value it adds to the entire monetary and financial systems.
During the conversation, she said that there are four things to consider regarding the price of Bitcoin that could determine the value of this virtual currency. Psychology is one of the most important factors, as the price of this virtual currency (and also many others) is affected by what people believe and think about it.
Another thing worth taking into consideration that has a strong impact on the Bitcoin price is the total supply of this virtual currency. Let’s not forget that BTC has a total supply of 21 million BTC and that will never change. Therefore, this shows that users have a strong incentive to hold BTC and wait for its price to appreciate as demand increases. More than 90% of these 21 million are already circulating. 900 BTC per day is added to the market.
Regulations could also have an effect on the price of Bitcoin. A cryptocurrency market that follows clear regulations and helps investors protect their funds (avoiding projects like Terra (LUNA)), could be a positive thing for the entire crypto market. When LUNA fell and Terra USD (UST) lost its peg, Bitcoin and other virtual currencies also fell.
Finally, Laboure talked about financial literacy and how it could impact Bitcoin and digital currencies. For example, bitcoin courses started to develop in El Salvador where bitcoin became legal tender. This allows people who have never had contact with the digital asset to start learning about it. It is very important to distinguish between Bitcoin and its value proposition compared to other digital currencies and their role in the cryptocurrency market.
At the time of writing, Bitcoin is traded for nearly $28,900, according to data shared by CoinGecko. Additionally, BTC has a market valuation of $550 billion and it has remained relatively stable over the past 24 hours.