Bitcoin to $100,000 This Year, Three Reasons Why
With the ‘roller-coaster’ year of 2021 soon coming to an end as the 4th quarter kicks off, a number of people still believe that Bitcoin could rise above $100,000. With Bitcoin price having seen highs of above $60,000 and dropping down below the $30,000, the latest climb back to just below $50,000 signals there is more to come.
It is Senior Commodity Strategist at Bloomberg, Mike McGlone who predicts that Bitcoin could more than double its value in the next three months. Among other reasons, the growing mass adoption and declining active supply are to account, according to McGlone on Twitter.
Can Bitcoin Reach $100,000 in 2021? Five Charts Show Potential – Past #Bitcoin trading trends and the crypto’s declining supply vs. mainstream adoption suggest a significant advance in 2021, potentially to $100,000, we believe. pic.twitter.com/0tH7PS7QEI
— Mike McGlone (@mikemcglone11) September 16, 2021
McGlone is backing up his claims by providing three insight. First off, he noted on the historical trading trends before broaching the decreasing supply of the top cryptocurrency. By design, the speed of creation of additional supply of coins, is reduced approximately every four year during its ‘halving’.
There are also the three million Bitcoin that are regarded unaccessible and lost. In addition, there is clear refusal of long-term holders to sell their coins even when the market starts to drop. McGlone’s outline coincides largely with the existing stock-to-flow model that also predicts a year end valuation of over $100,000 by year’s end. This model views the stock as the size of existing reserves (or stockpiles) and the flow as the annual new supply of Bitcoin on the market.
Thirdly, McGlone considers the increased adoption and demand, in its interaction with a decreasing supply, to be an important player to pump the prices.
Bitcoin’s demand has been increasing this lately. While Michael Saylor’s MicroStrategy has already invested billions of dollars and is not planning to sell, El Salvador recently became the first nation to have made Bitcoin legal tender. Moreover, El Salvador as of today holds 700 Bitcoin, after just buying the latest “dip”.
We just bought the dip.
150 new coins!
El Salvador now holds 700 coins.#Bitcoin
— Nayib Bukele (@nayibbukele) September 20, 2021
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Author: Peter Siu