Since the end of 2017, the cryptocurrency space has been in the limelight mainly because of its price movement. Bitcoin [BTC] and other cryptocurrencies rose to their all-time high towards the end of 2017 and the beginning of 2018. This massive push was not only a delightful event to the traders and investors but also to all the firms associated with the cryptocurrency space.
However, this rise was short-lived as a majority of the cryptocurrencies started to descend the market soon, with some seeing a significant loss of over 90% since their all-time high. This descend also had a massive effect on both cryptocurrency investors and firms associated with the cryptocurrency space.
One of the most-significant industry that was hit because of the crypto-market is noted to be the one associated with mining activities. This includes mining rigs and chip producers. According to recent reports, mining companies such as Bitmain have been hit by the decreasing value of Bitcoin and other cryptocurrencies.
Nvidia, a Bitcoin chip-maker giant, was also noted to be one among these firms. More so, its involvement with the cryptocurrency space is believed to be one of the reasons that traditional investors are weary of its stocks price.
Now, according to reports, Zdnet, the Bitcoin chip producer acquired Mellanox, an Israeli technology giant that develops networking technology for data center applications. More so, the firm was reportedly acquired for over $6.9 billion.
The report stated that if this acquisition did happen, then it would “help the company diversity its business and reduce its dependency on graphic cards, a market which has been at the mercy of cryptocurrency miners for years.”
The report also said:
“The purchase would also provide Nvidia with a wider pool of technology and talent for improving workstation and gaming processor connections.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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