While you are undoubtedly “interested in technology”, the most popular and hotly debated topic, particularly with regard to the public interest, remains the price of Bitcoin (BTC) and speculating about its value in the future.
Currently, Bitcoin is in a bullish market cycle, up 200% year-on-year and surpassing everything else in 2020, with the exception of some stocks like Tesla. But this rally looks different from the end of 2017. On the one hand, the historical record has definitely been broken. Second, institutions are building up – while the public still largely sits on the sidelines.
“We are in a flood of money and credit”
Six-digit price forecasts for Bitcoin are becoming increasingly common in this bullish cycle, with the acceleration of the central bank’s monetary expansion as the main factor.
In fact, billionaire investors like Ray Dalio are beginning to accept the idea of Bitcoin alongside gold as a way to diversify against what he calls the “derogatory value of money”.
“We are in a flood of money and credit that is raising most asset prices and distributing wealth in a way that the system we believe is normal cannot, and that threatens the value of our money and credit,” he warned in a statement. Reddit session on December 8.
“Most likely, this flood will not decrease, so these assets will not decrease when measured in the depreciation value of money. It is important to diversify well in terms of currencies and countries, as well as asset classes. “
Will Bitcoin reach $ 100K- $ 200K?
As Cointelegraph reported in May, Morgan Creek CEO Mark Yusko said that the price of BTC could exceed $ 100,000 in the next year or so. The price has now more than doubled since then, but it still needs to increase by another 300% in the next 12 months to reach six digits.
This estimate echoes the prediction of the popular Stock-to-Flow (S2F) model, which its creator, Plan B, says remains on track. Last month, Plan B reiterated that it now has no doubt that BTC will reach $ 100,000 in December 2021 due to a “supply shortage”.
“People ask me if I still believe in my model. To be clear: I have no doubt that Bitcoin S2FX is correct and Bitcoin will earn $ 100,000-288,000 before December 2021, “he wrote last month.
As reported, Bitcoin reached the average trend line of the S2F model last month.
A $ 200,000- $ 300,000 “conservative”?
The $ 200,000 price forecast is even becoming relatively harmless, according to other analysts. Popular network analyst Will Woo says he is seeing more evidence of “hodling” this time, as well as an ever-decreasing supply of BTC on the stock exchanges as a result of the aforementioned shortages.
According to Woo, this will be a double blow to bears.
“My Top Model suggesting $ 200,000 per BTC by the end of 2021 seems conservative, $ 300,000 is not out of the question.”
“I’ve never been more optimistic for 2021,” he continues in another post. “This recompilation phase coincides with the depletion of stocks in the spot market about 2x longer and deeper than the last cycle. He will send BTC. “
$ 400,000 and more for “digital gold”?
Even higher price forecasts stem from the argument that Bitcoin can challenge – or is already starting to challenge – and eventually supplant gold as a de facto store of value. Interestingly, some of the most optimistic forecasts started to come from traditional finance, as Bitcoin reached new highs in early December, vastly outpacing gold in 2020.
In November, for example, a Citibank analyst told customers in a note that Bitcoin could reach $ 318,000 by 2021. Citibank managing director Tom Fitzpatrick cited the historic “unthinkable Bitcoin rallies followed by painful corrections “.
Currently, the Citibank executive believes that BTC is in the middle of a bullish run that appears to be “on what appears to be a very well-defined channel”, which sets it to a target of $ 318,000 in December 2021.
Meanwhile, JPMorgan is also beginning to point to Bitcoin’s growing popularity among traditional investors. In fact, the investment banking giant sees much more potential for Bitcoin’s appreciation as “digital gold” compared to the already “very advanced” adoption of gold.
In a note to customers, the strategists said:
“The adoption of bitcoin by institutional investors has only just begun, while for gold its adoption by institutional investors is very advanced. If this medium and long term thesis proves to be correct, the price of gold will undergo a structural turnaround in the coming years. “
Today, Bitcoin’s market capitalization is less than 4% of gold. This immense potential for appreciation has also caused other large investors to share their predictions that involve the Bitcoin challenge and even surpassing gold with its $ 9 trillion market value.
Anthony Pompliano of Morgan Creek is still aiming for about $ 100,000 in 2021. However, in the summer he set a long-term goal of $ 400,000 if the BTC starts to reach gold. Meanwhile, the founders of the Gemini exchange, Tyler and Cameron Winklevoss, believe that Bitcoin “is a better gold than gold”, meaning that raising the price to $ 500,000 is now inevitable.
MicroStrategy and other investment firms that buy significant amounts of Bitcoin are just the beginning of a major change, according to Cameron. What’s more, Wall Street began to take an interest in Bitcoin as it quickly became a “no-brainer” for investment portfolios. Comparing it to the end of the first in a nine-entry baseball game, the Winklevoss twins hope that the value of Bitcoin will continue to rise for years to come.
“What if every Fortune 100 or 500 company does that, and what if central banks start doing that? It hasn’t even started yet, ”he added.