While you are undoubtedly “in it for the technology”, the most popular and much debated topic, especially in terms of public interest, remains the price of Bitcoin (BTC) and wonders about its value in the future.
Currently, Bitcoin is in a bull market cycle, over 200% year-to-date and better than anything else in 2020 with the exception of a few stocks like Tesla. But this rally works differently than at the end of 2017. Firstly the all-time high is finally broken. Second, institutions are accumulating – while the public is still largely on the sidelines.
“We are in a stream of money and credit”
Six-digit price forecasts per Bitcoin is becoming more and more common for this bull cycle with faster monetary expansion in the central bank as the key driver.
In fact, billionaire investors like Ray Dalio have begun to warm up to the idea of Bitcoin along with gold as a way to diversify toward what he calls “the declining value of money.”
“We are in a stream of money and credit that raises most asset prices and distributes wealth in a way that the system we have come to believe is normal is not capable of, and it threatens the value. of our money and credit, ”Han warned in a Dec. 8 Reddit session.
“Most likely, this flood will not recede, so these assets do not fall 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 hit $ 100K- $ 200K?
Like Cointelegraph reported in May, Morgan Creek CEO Mark Yusko said the BTC price could exceed $ 100,000 over the next year or so. The prize has now more than doubled since, but it should still win approx. 300% over the next 12 months to reach six figures.
This estimate repeats the forecast for the popular Stock-to-Flow (S2F) model, which its creator, planB, says continues to be on track. Last month, planB repeated that he now has no doubt that BTC will hit $ 100,000 by December 2021 due to a “shortage of supply.”
“People ask if I still believe in my model. To be clear: I have no doubt at all that Bitcoin S2FX is correct and Bitcoin will hit $ 100,000-288,000 by December 2021, ”he wrote last month.
As reported, Bitcoin has done that caught up to the S2F model’s average trend line in the last month.
A “conservative” $ 200,000 – $ 300,000?
The $ 200,000 price prediction even gets relatively tame, according to other analysts. The popular on-chain analyst Will Woo says he sees more evidence of “hodling” this time as well as a dwindling BTC supply on stock exchanges as a result of the previously mentioned stock shortage.
According to Woo, this will be a double whammy for the bears.
“My top model proposing $ 200K per BTC by the end of 2021 looks conservative, $ 300K is not out of the question.”
“I have never been so bullish in 2021,” he continues in another post. “This phase of re-accumulation coincides with the depletion of the spot market about 2x longer and deeper than the last cycle. It sends BTC. ”
$ 400,000 and up for “digital gold”?
Even higher price predictions stem from the argument that Bitcoin can challenge – or has already begun to challenge – and eventually replace gold as a de facto store of value. Interestingly, some of the most bullish forecasts have started to come from older financing as Bitcoin rose to new all-time heights in early December to far better than gold in 2020.
In November, for example. told an analyst from Citibank clients in a note that Bitcoin could reach $ 318,000 by 2021. Citibank CEO Tom Fitzpatrick quoted Bitcoin’s historic “unimaginable collections followed by painful corrections.”
Currently, the Citibank director believes that BTC is in the middle of a bull run that appears to be in “what looks like a very well-defined channel”, which sets it up to a target of $ 318,000 in December 2021.
JPMorgan, meanwhile, has also begun to point out Bitcoin’s growing popularity among traditional investors. In fact, the investment banking giant sees much more upward potential from Bitcoin as “digital gold” compared to the already “very advanced” adoption of gold.
In a note to clients, the strategists said:
“The introduction of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If this medium to long-term dissertation proves to be right, the price of gold will be exposed to a structural headwind in the coming years. ”
Today, Bitcoin’s market value is less than 4% of gold’s. This huge upward potential has also prompted other big name investors to share their predictions involving Bitcoin challenging and even surpasses gold with its $ 9 trillion market.
Morgan Creek Anthony Pompliano is still targeting around $ 100,000 in 2021. In the summer, however, he gave a $ 400.00 target in the long run if BTC starts catching gold. Meanwhile, Gemini exchange founders Tyler and Cameron Winklevoss believe Bitcoin “to be a better gold than gold,” which means that the price rises to $ 500,000 is now inevitable.
MicroStrategy and other investment companies buys significant amounts of Bitcoin is only the beginning of a major shift, according to Cameron. What’s more, Wall Street has started warm up to Bitcoin, as it quickly becomes a “no-brainer” for investment portfolios. Comparing that to the bottom of the first in a nine-inning baseball game, the Winklevoss twins expect Bitcoin’s value to continue to climb in the coming years.
“What if all Fortune 100 or 500 companies do it, what if central banks start doing it? It has not even started, ”he added.