Bitcoin is currently unstoppable. Why digital currency is well on the way to trading beyond $ 100,000 in 2021.
On Wednesday, December 16 of this year, the time had come: Bitcoin System app exceeded the 20,000 US dollar (USD) mark for the first time in its history. This means that everyone who has invested in BTC was in the green without exception. Accordingly, there was high spirits on the short message service Twitter. Even Edward Snowden is now on board.
The number 1 cryptocurrency has been up 186 percent since the beginning of the year. Those who follow the crypto market less closely are inclined to dismiss the latest price developments as pure bubbles similar to the 2017 crypto hype.
In contrast to 2017, the current price developments are fundamentally justified. Take a look at Google Search Trends, for example. Bitcoin-related search queries soared at the end of 2017 when BTC in similar spheres was trading in a very short space of time. All media reported that the market, as we know in retrospect, was overheated and could not bear the onslaught of crypto adventurers. Today: emptiness.
In addition, the 2017 rally was even more exorbitant than this year. In 2017, the “Orange Coin” rose from around USD 1,000 to just under USD 20,000 – a gain of 2,000 percent. It is not surprising that this was too much of a good thing even for the volatile cryptocurrency.
Where is the journey going ?
In fact, Bitcoin behaves amazingly predictably. If you use the stock-to-flow model , for example , you almost get scared. Because the precision with which PlanB predicts the rise of new money is almost unbelievable.
The current course activity is therefore most comparable to 2016. Because even then the Bitcoin inflation rate halved and the price moved slowly but surely towards the all-time high of 1,100 US dollars established in December 2013. If you continue to apply the template from previous cycles, we should see a bull market next year that dwarfs everything. Because although the crypto currency No. 1 has repeatedly corrected sharply, the long-term trend is as clear as day: it goes northwards.
Let’s assume that Bitcoin grows at the same rate as a year after the last halving, i.e. 2017, the price would be 400,000 US dollars at the end of 2021. That sounds hair-dusting. But if you consider that Bitcoin has already experienced such price jumps twice in its history, this idea seems a bit more realistic.
PlanB predicts USD 288,000 per bitcoin
PlanB itself predicts a rate of at least USD 288,000 with its S2F model. The Winklevoss brothers also see Bitcoin on a par with gold. If BTC reaches the gold market capitalization of around USD 9 trillion, the price would be beyond USD 500,000.
But it is also clear that Bitcoin always needs more fresh capital for further growth. Because with 900 BTC that are emitted every day, it only takes a purchase pressure of 18 million USD just to maintain the current price level. On the other hand, if you consider that more and more Bitcoiners are withdrawing their coins from exchanges and companies are now running into debt in order to buy new BTC, the shortage in the market could provide new price highlights.
These are all staggering numbers that have the potential to help individual actors achieve sheer incredible wealth. Nothing is guaranteed. But if you do not recognize that Bitcoin is in a historical upward trend, which can certainly lead to adventurous courses, you are not looking properly. One thing is clear, however: 2021 will be a wild ride.