Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Bitcoin price hit another all-time high yesterday as its price soared above $48,000 in the wake of Tesla’s $1.5 Billion Bitcoin purchase. The 20% price rise also saw Bitcoin price register a record $8,800 24-hour price candle for the first time. The mammoth price candle looks even more significant if we consider the fact only a year ago, Bitcoin price dipped to $4,000 in March.
Max Keiser Predicts Short Term $65k for BTC
As Bitcoin price approaches $50K, with more institutional capital expected to flow in the market, the question about the Bitcoin expected price top has started to crop up again. Bitcoin proponents like Max Keiser believe $65,000 would be a short-term top and expect the top cryptocurrency’s price to surpass $200k by the end of the year.
$65,000 short term in play
$220,000 in 2021 in play #Bitcoin pic.twitter.com/DXY5mmJZgX
— Max Keiser (@maxkeiser) February 8, 2021
These price predictions only a year ago would have been discarded for being absurd but today it seems very much possible. This bull season has not just drawn institutional interest but also broke many misconceptions around the top cryptocurrency. Bitcoin price has remained above $30K longer than it has held any of its previous highs, suggesting it has matured as an asset over the years and one of the key reasons institutions are using it as a Treasury Hedge.
Bitcoin’s Scarcity, a Driving Factor Behind Its Rise
Bitcoin’s rising price for sure has made it the center of all the headlines this bull season, however, the likes of PlanB, the popular Stock-to-flow analyst believe BTC’s fixed supply along with the fact that it self sustained is what makes it more formidable as a store of value. PlanB’s stock-to-flow model measure the value of assets based on scarcity, Bitcoin is currently sitting behind Gold on the list.
The Stock-to-value flow chart is also one of the heavily scrutinized models, as many skeptics believe that the chart only measures the supply side of the asset. However, this bull season has proved stock-to-flow quite accurate with its prediction and its price model suggests Bitcoin price topping $100K by the end of the year.
#bitcoin price track after 2020 halving is between 2012 and 2016 tracks. I added S2F ($100K) and S2FX ($288K) model targets. Targets are average prices, actual BTC price will oscillate around targets. If 2021 bull market follows 2017 then $100K it is, if we follow 2013 .. $288K🚀 pic.twitter.com/RdRP7VUqqF
— PlanB (@100trillionUSD) February 5, 2021
The stock-to-flow model predicts a $100K price at the end of 2021 if Bitcoin follows the 2017 price trends and a price target of $288K if the current bull run mimics 2013. The on-chain metrics and steady price rise suggest the ongoing bull run is following 2013 trends more than 2017,
Bitcoin’s Rising Popularity as Treasury Reserve Asset
The previous bull runs were carried by retail players, one of the key reasons why these bull runs lost steam after a short price burst lasting anywhere from few days to weeks. However, the current bull run is largely attributed to the institutional giants most of whom didn’t take Bitcoin only a couple of years ago. Now the same institutions are not just buying Bitcoin in hoards and worth billions, but also using it as a treasury reserve rather than hold and sell.
MicroStrategy was among the first institutions to convert a portion of their treasury cash into Bitcoin and started buying Bitcoin as early as August Last year when Bitcoin price was trading just above $10k. MicroStrategy has invested nearly $1.57 Billion in Bitcoin up until now and has bought the last two dips at $29K and $31K. Their investment has already nearly doubled since as the company looks to educate other institutions on the benefits of holding Bitcoin.’
As corporations adopt #bitcoin as a treasury reserve asset on their balance sheets, they replace a non-performing asset with the best performing asset, choosing volatile appreciation over stable depreciation. This Bitcoin Strategy benefits all shareholders over the long term. https://t.co/F0xxZ83jNx
— Michael Saylor (@michael_saylor) February 9, 2021
MicroStrategy is now joined by Tesla who made the largest single Bitcoin purchase worth $1.5 billion a couple of days ago as many were already speculating the same ever since Elon Musk changed his Twitter Bio to Bitcoin. It is not just Tesla and MicroStrategy who have added Bitcoin to their company’s balance sheet as nearly 15 publically traded companies reportedly hold Bitcoin now.
Bitcoin has managed to grab a significant portion of the Gold market as many traditional hedge fund managers and wall street investors have cut their exposure to gold to invest in Bitcoin.
Â
We have a 180 degree reversal in correlation to Gold.
Green dot is MicroStrategy's first purchase of Bitcoin. pic.twitter.com/gTglGcavOg
— Willy Woo (@woonomic) February 9, 2021
Different analysts have offered different price targets for Bitcoin price in both the short and long term and a $100K price target at the end of the year seems to be a common belief.
The post Editorial: How High Can Bitcoin (BTC) Price Rise in 2021? appeared first on Coingape.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.