Bitcoin bulls are back in charge after a mixed and volatile September for the world’s largest cryptocurrency.
Following China’s so-called ‘crypto crackdown’ as it moves to launch its own digital currency, amongst other issues, It currently sits a whisker away from the major threshold mark of $50,000.
I’m feeling pretty confident that this will be smashed imminently and will trigger the start of a major bull run.
Last month, I noted that we can expect the price of Bitcoin to hit – or even surpass – its mid-April all-time high of $65,000 by the end of 2021.
I now think that this is too conservative.
I’m confident that, if the current momentum in prices continues, we could see the Bitcoin price hit to-date unknown highs of $100,000.
Even though Bitcoin’s place in the global financial system is already assured, this would be a truly landmark moment.
I believe there are five key drivers of the momentum fuelling the surge in the Bitcoin price.
First, the Federal Reserve – the world’s de facto central bank – has come out this week and said that the US – the world’s largest economy – does not intend to ban cryptocurrencies.
It’s likely that other digital currencies will have greater regulatory oversight, which also is likely to positively shore-up the sector for the longer-term, but Bitcoin might be seen as a separate case by the authorities – due, in part, to its digital gold-like status.
Second, there is sustained and growing interest from institutional investors including Wall Street giants and major payments companies, who bring with them their capital, expertise and reputational influence.
Influence of Musk, Dorsey and Wood
Third, the increasing number of mega influencers such as Elon Musk, Jack Dorsey and Cathie Wood who have a clear message: crypto is the inevitable future of money.
The technicals support the prediction. History teaches us that the year that follows a Bitcoin halving, values rose significantly. Following the 2012 and 2016 halvings, prices rose by 55 times and 15 times, respectively, thereby suggesting that a move to $100,000 could be on the cards after the 2020 event.
And fifth, cryptocurrencies, of which Bitcoin is the most dominant, have already changed the way the world handles money, makes transactions, does business, and manages assets. Investors appreciate the inherent value of digital, borderless, global currencies for trade and commerce purposes in increasingly digitalised economies in which businesses operate in more than one jurisdiction.
This will only grow as mass global adoption moves ahead.
For example, El Salvador last month became the world’s first sovereign nation to officially buy Bitcoin and to make the cryptocurrency legal tender – and there is no way it will be the last.
The momentum created by Bitcoin, the market leader, will have the effect on putting the other major digital assets including Ethereum and Cardano on a significant upward trajectory.
Bitcoin has stormed back after a mini-dip. There’s little reason to believe it won’t continue its current upswing and significantly beat previous all-time highs.