Bitcoin has seen a strong rally this week, although the price seemed to be plunging today as investors scramble to cash out after it hit an all-time high of $64,945. BTC is currently trading at $62,020, down more than 5% from its peak. It has a market capitalization of over $1.16 trillion.
The big question is how far will the current bull market drive the price of Bitcoin this year?
Here are some of the most well-known crypto
personalities and organisations that have made bullish Bitcoin price predictions:
According to analysts at JPMorgan, a longtime bitcoin skeptic, bitcoin might reach $130,000 in the long run if its volatility converges with that of gold.
“Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note to clients this week.
According to Michael Saylor, he believes that bitcoin would reach a million dollars. He predicts that it will reach $5 million. He also asks, Why shouldn’t it go to $100 trillion in market cap or something if it simply replaces all the indexes with monetary index money?
Saylor, whose company MicroStrategy now owns 91,326 Bitcoin, points out that the flagship crypto asset is currently a “screaming signal”. Saylor claims that the asset could soar a hundredfold to hit a price of $5 million per unit in a new interview with FamilyOffice.
Pantera’s forecast is based on the stock-to-flow model, an empirical method that determines the price of an asset based on the annual issuance schedule. The model calculates the scarcity of bitcoin (BTC), which is determined by the underlying network programming that was built into the blockchain’s architecture 12 years ago. In an emailed newsletter, Dan Morehead, CEO and co-chief investment officer of Pantera Capital, a blockchain hedge fund, said, “Bitcoin is now ahead of our April 2020 prediction timeline – to reach $115K this summer.”
INSTITUTIONAL FLOW IS A GAME CHANGER
Predictions alone, regardless of who makes them, are insufficient to push Bitcoin into the six-digit price range. Individual investors and large institutions alike, as well as serious buyers and hodlers, are required.
Likewise, with financial institutions like BlackRock and MasterCard recently confirming their involvement in Bitcoin, there can be no doubt of the institutional enthusiasm for bitcoin. Also Time Magazine recently announced their own acquisition of Bitcoin
The anticipation and indeed observation of high inflation is perhaps the most convincing factor pushing investors, big and small, into Bitcoin. As a result of central banks printing billions, if not trillions, of new fiat units in response to COVID 19, the stage is set for decreasing fiat value and increasing prices for goods and services.