Key Points
- Bitcoin’s price rebounded following a legal victory by Tornado Cash, a crypto mixer.
- Crypto analysts maintain a bullish outlook, predicting that Bitcoin could rise to between $250,000 and $500,000 in the next 12 to 24 months.
Bitcoin’s price made a comeback on Wednesday, halting a two-day decline that nearly brought it down to the $90,000 mark.
This resurgence occurred after Tornado Cash, a cryptocurrency mixer, won a significant court case. A panel of three judges ruled that penalizing its smart contract was unjust. Coinbase, the largest cryptocurrency exchange in the United States, was among the firms that backed Tornado Cash.
Legal Wins and Regulatory Clarity
This triumph indicates that the cryptocurrency industry is achieving some legal victories in the United States, paving the way for increased regulatory clarity. Additionally, there is growing optimism that the Trump administration will be receptive to the cryptocurrency sector.
Cryptocurrency analysts maintain that the recent pullback was just a retracement and that the bullish outlook remains intact. Charles Hoskinson, a cryptocurrency millionaire and the founder of Cardano, forecasted in an X post that the coin’s value would increase to between $250,000 and $500,000 within the next 12 to 24 months.
Hoskinson believes that more corporations will begin transferring some of their assets to Bitcoin, following the examples set by MicroStrategy and El Salvador. Currently, MicroStrategy owns Bitcoin coins valued at $32 billion, while the market cap stands at over $70 billion.
Bitcoin’s Bullish Case
If Bitcoin’s price increases to $500,000 and its supply remains at the current 19.6 million, it would have a market cap of over $9.75 trillion. This would make it a larger asset than NVIDIA and Microsoft combined.
One of the main arguments for Bitcoin’s bullish case is that it took over 15 years to reach $100,000, suggesting that it will take a shorter time to reach $200,000. For instance, the Dow Jones hit $10,000 in 2010 and $20,000 in 2020. It then took two years to reach $30,000 and less than two years to reach $40,000.
The weekly chart indicates that the Bitcoin price formed a cup and handle pattern, with the upper side at about $68,800. The depth of this cup was about 78%. Therefore, measuring that distance from the upper side suggests that the coin will surge to $122,000 in the near term.
Adding to the bullish case is the fact that the Bitcoin price formed a golden cross chart pattern as the 200-day and 50-day moving averages crossed each other. Historically, major moves tend to follow the formation of this cross.
The bullish outlook will become invalid if the coin falls below the lower side of the handle at $49,523.
