While you’re no doubt “in it for the technology,” the most popular and hotly debated topic, especially in public interest, remains the price of Bitcoin (BTC) and speculate on its value in the future.
Currently, Bitcoin is in a bull market cycle, up over 200% since the beginning of the year and outperforming everything else in 2020, with the exception of a few stocks like Tesla. But this meeting seems different than those at the end of 2017. First, the highest point ever has been broken for good. Second, institutions are piling up – while the public is still largely on the sidelines.
“We are in a flood of money and credit”
Six-digit Bitcoin price predictions are becoming more common for this bull cycle, with accelerated central bank monetary expansion as the main driver.
In fact, billionaire investors like Ray Dalio are starting to appreciate the idea of Bitcoin alongside gold as a way to diversify against what he calls “the depreciating value of money.”
“We are in a flood of money and credit driving up most asset prices and distributing wealth in a way that the system that we have come to think is normal is incapable, and which threatens the value of our money and credit., ”he warned in a December 8 Reddit session.
“Most likely, that flood will not diminish, so those assets will not diminish when measured in the depreciating 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?
Such as Cointelegraph reported In May, Mark Yusko, Morgan Creek CEO, said the BTC price could exceed $ 100,000 in the coming year. The price has more than doubled since then, but still has to rise about 300% in the next 12 months to reach six figures.
This estimate echoes the prediction of the popular Stock-to-Flow (S2F) model, which its creator, planB, says is still on track. Last month, planB repeated that he now has no doubt that BTC will reach $ 100,000 by December 2021 due to a “supply shortage.”
“People ask if I still believe in my model. To be clear, I have no doubt that Bitcoin S2FX is correct and that Bitcoin will tap $ 100,000-288,000 by December 2021, ” he wrote last month.
As reported, Bitcoin overtaken by the mean trend line of the S2F model in the past month.
A “conservative” $ 200,000 – $ 300,000?
In fact, the $ 200,000 price prediction is getting relatively tame, according to other analysts. Popular on-chain analyst Will Woo says he sees more evidence of “hodling” this time, as well as dwindling BTC stock in exchanges due to the aforementioned shortage of stock.
According to Woo, this will be a double blow to the bears.
“My top model, which suggests $ 200K per BTC by the end of 2021, looks conservative, $ 300K is not out of the question.”
“I’ve never been more optimistic for 2021,” he continues in another post. “This rebuilding phase coincides with the depletion of spot market stock, about 2x as long and deeper than the previous cycle. It will drive BTC.”
$ 400,000 and up for “digital gold”?
Even higher price predictions stem from the argument that Bitcoin can challenge – or already begin to dispute – and eventually replace gold as a de facto store of value. Interestingly, some of the most optimistic predictions come from legacy finance when Bitcoin surged to new record highs early December to outperform gold in 2020.
In November a Citibank analyst told clients in a note that Bitcoin could reach $ 318,000 by 2021. Citibank president Tom Fitzpatrick cited Bitcoin’s historic ‘unthinkable rallies followed by painful corrections’.
Currently, the Citibank executive believes BTC is in the midst of a bull run that appears to be in “what appears to be a very well-defined channel,” which it sets at a target of $ 318,000 by December 2021.
JPMorgan, meanwhile, is also starting to point out The increasing popularity of Bitcoin among traditional investors. In fact, the investment banking giant sees much more of Bitcoin’s upside potential as “digital gold,” compared to the already “highly advanced” adoption of gold.
In a note to customers, the strategists said:
“The adoption of bitcoin by institutional investors has only just started, while for gold the acceptance by institutional investors is very advanced. If this thesis is correct for the medium to longer term, the gold price would suffer from structural headwinds in the coming years. “
Today, Bitcoin’s market capitalization is less than 4% that of gold. This huge upside potential has also prompted other major investors to share their predictions regarding Bitcoin challenging and even surpassing gold with a market cap of $ 9 trillion.
Morgan Creek’s Anthony Pompliano is still aiming for around $ 100,000 by 2021. In the summer, however, he gave a longer-term goal of $ 400.00 as BTC begins to overtake gold. Meanwhile, Gemini’s founders, Tyler and Cameron Winklevoss, believe that Bitcoin “better gold than gold, “which means price hike to $ 500,000 is now inevitable.
MicroStrategy and other investment firms buying significant amounts of Bitcoin is just the beginning of a major shift, according to Cameron. Plus, Wall Street has started pre workout to Bitcoin because it is fast becoming a “no-brainer” for investment portfolios. Compared to the bottom of the first in a nine-innings baseball game, the Winklevoss twins expect Bitcoin’s value to continue to rise in the coming years.
What if every Fortune 100 or 500 company does that, what if central banks start doing that? It hasn’t even started yet, ”he added.