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Bitcoin [BTC] could reach a market cap of $1 trillion if volatility of May 2015 – Dec 2017 follows, claims Chris Burniske

Biraajmaan Tamuly

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Bitcoin will reach $1 trillion market cap if volatility of May 2015-Dec 2017 follows, claims Chris Burniske
Source: Pixabay

Bitcoin [BTC] is the most dominant virtual asset in the cryptoverse, usually dictating the collective surge of the entire market. At press time, the market capitalization recorded by Bitcoin [BTC] was $143 billion.

However, Chris Burniske, Founder of Crypto Venture Capital, believes that Bitcoin [BTC] is on its way to achieve $1 trillion market cap before 2021.

In an interview with Ran NeuNer of CNBC crypto trader, Burniske stated that the scenario of Bitcoin reaching a $1 trillion dollar valuation was just one “potential reality” the wider cryptocurrency community could witness.

The $1 trillion expectation was assumed after taking Bitcoin’s [BTC] network value at press time, until the end of 2021. If the path followed by Bitcoin [BTC] was half as volatile as it was from May 2015 to the end of 2017, then Bitcoin [BTC] would cross a trillion dollars.

Chris also indicated that if Bitcoin [BTC] were able to hold its current market dominance, it might even be able to cross a $2 trillion dollar evaluation by the end of 2021.

He said,



“The Bitcoin [BTC] dominance index had been falling over time not because Bitcoin hasn’t been growing but just because of the higher risk, the more speculative assets grow faster in bull markets.”

Additionally, he said that in terms of adoption, Bitcoin continued to be utilized as blocks were as full as they ever have been.

Finally, Burniske stated that the long term future of crypto-assets was positive since the technology was “superior” to every other medium which was creating custody and transaction of digital assets.





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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

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JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:



“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.





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