China’s intensifying crypto crackdown, Jim Cramer talking about dumping Bitcoin, Mark Cuban getting hit in a Titan token investment, and other negative events recently shook investors' confidence in cryptocurrencies. Bitcoin fell below $30,000 in many months and investors crossed their fingers for a crypto rebound.
The threats to cryptocurrencies aren’t over. The BIS (Bank for International Settlements) is the largest major institution to come down hard on the sector. The BIS thinks that cryptocurrencies like Bitcoin are bad for the environment and used to facilitate financial crimes. Instead, the so-called central bank of central banks is encouraging the development of rival government-issued digital currencies. Investors are looking past the criticism.
When will crypto rebound?
Investors look fired up again following the recent crash and a crypto rebound looks well underway. The global crypto market cap has jumped more than 10 percent in the past 24 hours to $1.36 trillion. Most major cryptocurrencies have recovered from their recent lows and look set to continue pushing up.
There are many catalysts for the crypto rebound if you look around. First, the recent sell-off has opened a bargain opportunity for investors who have been waiting for a chance to buy the dip. Many were waiting for that moment although their target lows varied. For example, Cramer said that he sold most of his Bitcoin holdings. He was hoping that the crypto would drop to lows of $10,000 to buy it back.
There's also the report about a hedge fund that bet against GameStop stock shutting down in London after suffering losses. That appears to remind small investors that elite investors aren’t always right about investment choices. This encourages investors to put money in non-traditional assets like cryptocurrencies.
Another confidence boost comes from the report about Israel considering the Ethereum blockchain for its digital currency. Cathie Wood’s move to purchase more Grayscale Bitcoin Trust shares during the recent market crash has bolstered hopes of a crypto rebound.
Bitcoin, Ethereum, and Dogecoin lead the crypto rebound
Bitcoin usually has a huge influence on the direction of the crypto market. The recent crypto crashes have mainly stemmed from events impacting Bitcoin particularly, like Tesla’s decision to stop accepting it as payment for car purchases. The flagship crypto is making a comeback and the broader crypto universe is rising along with it.
Bitcoin has gained almost 20 percent in the past 24 hours. Ethereum and Dogecoin are up 16 percent and 38 percent during the same period. Binance Coin (BNB), Cardano (ADA), and Ripple (XRP) are the other major cryptocurrencies seeing a rebound.
Bitcoin, Ethereum, Dogecoin price prediction after the crash
At Digital Coin Price, they forecast Bitcoin closing 2021 at $56,800, which suggests nearly a 70 percent upside to the current price. At WalletInvestor, they see Bitcoin's price hitting $185,500 in five years, which implies a 450 percent upside potential.
Ethereum is expected to close 2021 at $3,100, which suggests a 60 percent upside and hit $12,000 in five years, which implies a 500 percent upside. Elon Musk’s favorite DOGE coin is expected to rise 60 percent over the current level to close 2021 at $0.38 and surpass $1 in five years, which suggests a 370 percent upside.