Can Bitcoin reach the $100K mark by December?
In April this year, Bitcoin reached the all-time high of $65,000. However, post that, due to a change in the market trend, the entire crypto market took a hit. Since April, the price of Bitcoin has fallen by 50% by the end of the year, and the $100,000 mark seemed far away to retail and institutional investors. However, Bitcoin recently crossed the $40,000 mark for the first time in six weeks, which renewed the prospect for a Bitcoin bull-run. Several experts still believe that Bitcoin can touch the $100,000 price by the end of the year.
Numerous prediction models have shown that $100,000 could be a feasible target for Bitcoin by December 2021. For example, the Stock to Flow model takes the deflationary nature of Bitcoin’s issuance rate, which is reduced by half every four years, into account. Here, the Stock is the number of coins in circulation and the flow in the number being mined each year. This model has predicted the digital asset’s price accurately over the previous market cycles. However, for it to stay valid, Bitcoin has to touch the $100,000 price before the year ends.
“Regarding Bitcoin reaching $100,000, that’s a tough question. Whether or not BTC will reach $100k this year, we cannot know for sure. If we prolong the time frame into, let’s say, 2-4 years, that’s almost certain. However, on-analysts like William Clemente and Willy Woo point out the fact that not only are whales accumulating BTC, but they’re also taking their coins out of exchanges. Shortage in supply usually means price goes up.”
- Pedro Febrero, Blockchain Analyst at Quantumeconomics
Over the last few weeks, the two on-chain metrics stated by Febrero – whale accumulation and exchange outflows – have been deeply analyzed. They are amongst the known indicators for price prediction and show an incoming Bullish period. According to Cointelegraph, there was a monthly exchange outflow of about 100,000 Bitcoin from centralized exchanges. This indicates that investors are interested in keeping their coins at a safer place out of exchanges. In fact, exchanges currently hold only 13.2% of circulating Bitcoin.
“The 2020 halving came amid unprecedented global fiscal and monetary stimulus, along with institutions tilting toward Bitcoin allocations. The chance that the crypto becomes the digital reserve asset and stays the course it’s charted over most of the past decade is increasingly outweighing the loss of a small portion of a portfolio.”
Bitcoin, as well as other cryptocurrencies, have been gaining attention from mainstream media. Digital assets are now a mandatory investment in several different kinds of investment portfolios. With these developments, predictions have also evolved considerably as they explore unchartered territory in the digital asset class.