After a nasty correction, Bitcoin is back in the green zone. The ‘people’s currency’ has gained 4.38% in the last 7 days alone. The price is currently surging at 4.94%. It has crossed the $9500 mark and currently is priced at $9675.74.
That’s close to 50% up from its recent lows, an encouraging sign for Bitcoin bulls.
Some experts think the digital currency will reach and beat the old high, provided that three things go in Bitcoin’s way.
The first thing is higher Bitcoin adoption rates as a store of value and as a medium of exchange, two functions common among conventional currencies. That, in turn, will take a better security infrastructure.
Christian Ferri, President, and CEO of BlockStar says:
“Assuming Bitcoin will be used as store of value going forward (e.g. digital gold), a better security infrastructure overarching the entire crypto ecosystem will be needed for people to place trust in this new financial medium and start using it. Once this happens, more people will jump in, so a scalable infrastructure will be crucial. “
“If new enhancements are done to the protocol to allow Bitcoin (or a fork of thereof) to become a medium for everyday transactions (e.g. buy your Latte with Bitcoin), we’ll need a stability mechanism in place, on top of security and scalability mentioned above. This way that Latte won’t cost you $5 today and $50 tomorrow.”
Second thing on the list that could help Bitcoin reach new highs is the inflow of institutional money into crypto index funds.
Paul A. Taylor, Executive Chairman, Fabric Foundation says:
“The influx of money from institutions putting money into crypto index funds will cause a cascading, causing the herd to rush in.”
Darren Marble of CrowdfundX agrees with Paul and adds:
“At this stage, institutional investors hold the key to Bitcoin’s growth. Concerns about liquidity, security, counterparty risk and custody of assets have so far prevented institutional investors from buying Bitcoin on decentralized exchanges.”
For this situation to change, a host of regulated exchanges must go online.
Darren Marble added:
“Only when regulated exchanges, such as tZERO, Coinlist, or even NASDAQ can go live with their secondary crypto trading platforms, will the smart money begin investing directly into Bitcoin. Once this happens, the floodgates will open and we will see a new paradigm emerge; the crypto market cap will exceed $1 billion, and lead by new all-time highs of Bitcoin.”
The third and the final thing that could go Bitcoin’s way is the proliferation of crypto-related exchange-traded funds [ETFs].
Chris Kline, co-founder, and COO of BitcoinIRA.com says:
“Crypto-related exchange-traded funds may allow for simpler trading through brokerage accounts, which would also contribute to hiked up prices for Bitcoin and other cryptocurrencies. In my opinion, it’s only a matter of time before prices rebound again as there is so much momentum surrounding Bitcoin and other digital currencies, .”
According to Forbes, it is a matter of faith, too.
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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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