While it’s true that “it’s in for the technology”, The most popular and controversial topic, especially in terms of public interest, remains the price of Bitcoin (BTC) and speculation about its value in the future.
Currently, Bitcoin is in a bull market cycle, up more than 200% this year and outperforming everything else in 2020, with the exception of some stocks like Tesla. But This increase appears to be different than at the end of 2017. On the one hand, the all-time high was definitely exceeded. Second, institutions pile up while the public is still largely marginalized.
“We are in a flood of money and credit”
Six-digit price predictions for Bitcoin are becoming more common for this bull cyclewith the central bank’s acceleration of monetary expansion as the main driver.
Actually, Billionaire investors like Ray Dalio are heating up the idea of Bitcoin alongside gold in order to diversify against what he calls “the devaluing value of money”..
“”We find ourselves in a deluge of money and credit that is raising most of asset prices and distributing wealth in a way that what the system we believe is normal cannot and that puts the value of our money and credit at risk, “he warned in a December 8th session on Reddit.
“Most likely, this tide will not recede, so these assets will not sink when measured against the devalued value of money. It is important to diversify well across currencies and countries, as well as by asset class. “
Will Bitcoin Reach $ 100,000 or $ 200,000?
As Cointelegraph reported in May, Morgan Creek’s CEO, Mark Yusko said the price of BTC could top $ 100,000 in the next year or so. The price has more than doubled since then, but has to increase by around 300% over the next 12 months to reach the six-digit figure.
This estimate reflects the forecast of the popular stock-to-flow model (S2F), which according to its inventor planB is still on track. Last month, planB reiterated that there is no doubt that BTC will hit $ 100,000 by December 2021 due to a “supply bottleneck”..
“People ask me if I still believe in my model. To be clear: I have no doubt that Bitcoin S2FX is correct and that Bitcoin will hit $ 100,000-288,000 before December 2021. “he wrote last month.
As reported Bitcoin hit the average trendline of the S2F model last month.
A “conservative” $ 200,000- $ 300,000?
According to other analysts, the price forecast of $ 200,000 is even becoming relatively tame. The popular blockchain analyst Will Woo says he’s seeing more signs of “hodling” this time around, as well as a decline in BTC supply on the exchanges as a result of the above-mentioned shortage of stocks..
According to Woo This will be a double blow for the bassists.
“My top model suggests that the $ 200,000 for BTC seems conservative by the end of 2021; the $ 300,000 is out of the question.”
“I’ve never been so optimistic about 2021”, continues in another post. “This re-accumulation phase coincides with the depletion of spot market stocks, which is about twice longer and deeper than the last cycle. It will send BTC.”.
$ 400,000 and more for “digital gold”?
Even higher price predictions come from the argument that Bitcoin may be challenging, or is already beginning to challenge, and will eventually replace gold as the de facto store of value.. Interestingly, some of the most encouraging predictions come from ancient finance Bitcoin hit new all-time highs in early December and significantly outperformed gold in 2020.
For example in November A Citibank analyst told clients that Bitcoin could reach as high as $ 318,000 in 2021. Citibank CEO Tom Fitzpatrick cited the historic “unimaginable rallies of Bitcoin followed by painful corrections”.
Currently, The Citibank executive believes BTC is in the middle of a rally that appears to be in a “very well defined channel”.This set a target of $ 318,000 for December 2021.
JPMorgan is now also pointing out the growing popularity of Bitcoin with traditional investors.. In fact, the investment banking giant sees much greater potential for Bitcoin as “digital gold” compared to the already “very advanced” adoption of gold.
In a message to clients, the strategists said:
“The adoption of Bitcoin by institutional investors has only just begun, while the adoption of Bitcoin by institutional investors is well advanced. If this thesis turns out to be correct in the medium and long term, the price of gold will suffer from structural headwinds in the years to come. “
Nowadays, Bitcoin’s market capitalization is less than 4% that of gold. This immense upside potential has also prompted other major investors to share their predictions that Bitcoin will challenge and even overtake Gold with its market capitalization of $ 9 trillion.
Morgan Creek’s Anthony Pompliano is still aiming for around $ 100,000 in 2021. However, over the summer he set a long-term goal of $ 400,000 if BTC starts hitting gold. Meanwhile the founders of the twins exchange, Tyler and Cameron Winklevoss believe Bitcoin is “better gold than gold,” which means that it is inevitable that the price will soar to $ 500,000.
According to Cameron, MicroStrategy and other investment firms buying significant amounts of Bitcoin are just the beginning of a big change. In addition, Wall Street has started heating up Bitcoin as it is quickly becoming a “don’t know what” investment portfolio. If you compare it to the end of the first in a nine game baseball game, The Winklevoss twins expect the value of Bitcoin to keep rising over the years.
“What if every Fortune 100 or 500 company does this? What if the central banks start? It hasn’t even started yet.”he added.