While you are undoubtedly “for the technology”, the most popular and hotly debated topic, particularly when it comes to public interest, remains the price of Bitcoin (BTC) and speculating about its value in the future.
Bitcoin is currently in a bull market cycle that has risen over 200% since the start of the year and outperformed everything else except for a few stocks like Tesla in 2020. But this rally seems to be different from the one at the end of 2017. On the one hand, the all-time high was finally broken. Second, institutions are piling up – while the public is still largely marginalized.
“We are in a flood of money and credit”
Six-digit price predictions per bitcoin are becoming increasingly common for this bull cycle, with the central bank’s accelerated monetary expansion being the main driver.
Indeed, billionaire investors like Ray Dalio are starting to get interested in the idea of Bitcoin alongside gold in order to diversify against what he calls “the depreciating value of money.”
“We are in a deluge of money and credit that is raising most asset prices and distributing wealth in a way that what we believe is normal system cannot and which threatens the value of our money and credit” He warned in a Reddit meeting on December 8th.
“Most likely, the tide won’t recede, so these assets won’t diminish when you measure the depreciating value of money. It is important to be well diversified in terms of currencies and countries as well as asset classes. “
Will Bitcoin Reach $ 100,000 to $ 200,000?
As Cointelegraph reported in May, Morgan Creek CEO Mark Yusko said the BTC price could exceed about $ 100,000 next year. The price has more than doubled since then, but has to increase by around 300% over the next 12 months to reach the six-digit figure.
This estimate reflects the forecast of the popular stock-to-flow (S2F) model, which according to its inventor planB is still on the right track. Last month, planB reiterated that it now has no doubt that BTC will hit $ 100,000 by December 2021 due to a “supply bottleneck”.
“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 fetch $ 100,000-288,000 before December 2021, “he wrote last month.
As reported, Bitcoin hit the average trendline of the S2F model last month.
A “conservative” $ 200,000- $ 300,000?
According to other analysts, the price forecast of USD 200,000 is even becoming relatively tame. Popular on-chain analyst Will Woo says he’s seeing more signs of “hodling” this time around, as well as dwindling supply of BTC on the stock exchanges as a result of the aforementioned stock shortage.
BTC reserve on all exchanges. Source CryptoQuant
According to Woo, this will be a double blow for the bears.
“My top model, which is proposing USD 200,000 per BTC by the end of 2021, looks conservative, USD 300,000 is out of the question.”
“I’ve never been so optimistic in 2021,” he continues in another post. “This phase of renewed accumulation coincides with an approximately twice longer and deeper depletion of the spot market stocks than in the last cycle. It will send BTC. “
$ 400,000 and more for “digital gold”?
Even higher price predictions result from the argument that Bitcoin can challenge gold as a de facto store of value or is already questioning it. Interestingly, some of the most optimistic predictions come from legacy funding, as Bitcoin rose to new all-time highs in early December, significantly outperforming gold in 2020.
In November, for example, an analyst at Citibank told its customers that Bitcoin could reach as much as $ 318,000 in 2021. Citibank CEO Tom Fitzpatrick cited the historic “unthinkable rallies of Bitcoin, followed by painful corrections”.
Currently, Citibank executives believe that BTC is in the middle of a bull run that appears to be in a “very well-defined channel” that has a target of $ 318,000 in December 2021.
JPMorgan is now also pointing out the increasing popularity of Bitcoin with traditional investors. In fact, the investment banking giant sees much more upside potential for Bitcoin than “digital gold” than the already “very advanced” adoption of gold.
In a message to clients, the strategists said:
“The adoption of Bitcoin by institutional investors has only just begun, while the adoption of Bitcoin by institutional investors is very advanced. If this medium to longer-term thesis proves correct, the gold price would suffer from structural headwinds in the coming years. “
Today, Bitcoin’s market capitalization is less than 4% of gold’s capitalization. This immense upside potential has led other well-known investors to share their predictions that Bitcoin will challenge and even surpass gold with its market capitalization of $ 9 trillion.
Morgan Creek’s Anthony Pompliano is still aiming for around $ 100,000 in 2021. However, over the summer, he set a longer-term target of $ 400.00 if BTC starts catching up with gold. Meanwhile, Gemini exchange founders Tyler and Cameron Winklevoss believe that Bitcoin is “better gold than gold,” which means that a price surge to $ 500,000 is now inevitable.
According to Cameron, MicroStrategy and other investment firms buying significant amounts of Bitcoin is just the beginning of a big change. In addition, Wall Street has warmed to Bitcoin as it is quickly becoming a breeze for investment portfolios. Comparing it to first place in a nine innings baseball game, the Winklevoss twins expect the value of Bitcoin to keep rising in the years to come.
“What if every Fortune 100 or 500 company does that? What if the central banks start doing this? It hasn’t even started, ”he added.