Many experts believe that bitcoin could reach $ 100,000 by the end of 2021. But to what extent is this hypothesis possible, and what reasons have analysts given for their claim?
to the Report Crypto Potito Some believe that bitcoin will continue to rise until the end of this year, eventually reaching $ 100,000. Bloomberg chief strategist Mike McGlone is one of them. He pointed to the expansion of bitcoin acceptance, the reduction in turnover and a few other things, and said that bitcoin could double in price in the next three months.
2021 has been a tumultuous year so far. The price of Bitcoin fell below $ 30,000 to above $ 60,000 and reached a record high, but soon fell back to baseline.
Bitcoin then managed to break through the dark days of July (July) with a growth of $ 20,000 and is now trading slightly below $ 50,000. There are now four months left until the end of 2021, and the number of forecasts for a 100% increase in the price of Bitcoin during this period continues to increase.
The Bloomberg strategist has joined the process for a number of reasons. He first referred to the historical trend and price performance before the reduction in supply.
There are different views on this issue. Bitcoin mining speeds halve almost once every 4 years after Hawning. After the last Hyung, which took place in 2020, the reward for extracting each block has now been reduced to 6.25 bitcoins.
You can also add 3 million bitcoins that have disappeared or become inaccessible for various reasons. In addition, long-term investors seem determined to keep their bitcoins in the future, and even falling prices, as happened earlier this month, will not persuade them to sell their assets.
This is largely consistent with the S2F model. This model has estimated the price of $ 100,000 for the end of this year by examining the ratio of the volume of reserves or the same inventory, to the flow or the annual supply of bitcoin.
The third reason cited by McGlown is the growth in acceptance and its relationship to reduced supply. As the basics of economics dictate, if the supply of an asset decreases and demand remains constant or increases, it should theoretically increase in price.
Recently, the demand for bitcoin has been increasing. There are big companies that have invested billions of dollars in Bitcoin, and some of them have said they will never sell their assets.
Institutional investors are pressuring banks to provide them with the legal framework to invest in bitcoin. The volume of assets managed by the Grayscale Bitcoin Investment Fund has increased tenfold since 2019.
As a result, it is not surprising that figures such as Jordan Belfort, Adam Back, Tom Lee, and Michael Gronager, CEO of Chinalis, think that Bitcoin could reach six by the end of 2021. To be numbered.