After the recent rally, some have turned positive and have projected a new high within the next few months. Prominent among them are Galaxy Digital CEO Michael Novogratz, and investment bank Canaccord Genuity, both have a target of $20,000 by 2021. Tim Draper, however, believes that Bitcoin can reach $250,000 by 2023. While these targets boost sentiment, we believe that the cryptocurrencies will face many hurdles before they make a new high.
The sharp rally in Bitcoin has boosted its market dominance to 58.8%, its best level since December 2017. This shows that the market participants are currently favoring the largest digital currency over altcoins. But if Bitcoin sustains close to current levels, we expect the altcoins to play catch up in the near future.