On the night of March 18, the bitcoin rate again approached the $ 60 thousand mark.The first cryptocurrency began to actively grow in price after it crossed the $ 20 thousand mark in December last year. The cost of the cryptocurrency tripled in three months, writes RBC Crypto.
Now many traders and investors expect the rate of the first cryptocurrency to rise to the next important mark of $ 100 thousand. Twitter users even launched a flash mob, in which they install a photo with “laser eyes” on their avatar and promise not to change it until Bitcoin reaches $ 100 thousand
The flash mob was attended by John Lennon’s son Sean, Tesla CEO Elon Musk, Morgan Creek Digital co-founder Anthony Pompliano and others. At the same time, Max Kaiser, the founder of Heisenberg Capital, predicts that the rise in inflation of national currencies may lead to Bitcoin exceeding the $ 100 thousand mark and reaching the level of $ 220 thousand this year.
The probability that the first cryptocurrency will rise in price to $ 100 thousand in 2021 is very high, says Sergey Zhdanov, CEO of the EXMO exchange. According to him, the dynamics of Bitcoin at the moment almost ideally corresponds to the dynamics of an asset with a scarce value. According to the Stock-to-Flow valuation model (used to estimate the value of scarce assets), the goal of $ 100,000 is achievable already this year, Zhdanov notes.
Institutional players interest
The first reason for the growth in bitcoin quotes is the high demand for the first cryptocurrency from institutional players, Zhdanov says. Their interest is growing against the background of the record value of the flagship cryptocurrency and will only stimulate its growth in the future. Nikita Zuborev, senior analyst at Bestchange.ru, confirms this. In his opinion, institutional investors will continue to join the market, which also attracts private investors.
Zuborev notes that the policy of the US Federal Reserve and the economic instability that arose as a result of the unprecedented emission of new dollars could play a role in the rise in bitcoin prices.
“If the Stock-to-Flow scenario continues to be executed, then $ 100 thousand per bitcoin is predicted already in late summer – early autumn 2021,” the analyst says.
The flagship cryptocurrency is growing mainly on institutional demand, says Grigory Klumov, founder of the stable cryptocurrency platform Stasis.net. He recalled that the largest bank in the United States, Morgan Stanley, decided to allow its clients to invest in bitcoin funds. The expert calls this a leading signal of large-scale demand for both Bitcoin and the DeFi sector.
Growth after correction
In the coming weeks, a market correction is inevitable, as the market will need a “new impulse” before the rally continues, Zuborev notes. According to him, a high concentration of short positions on large crypto-exchanges during a trend change can serve as a new impetus for growth.
“Back in December, it was widely believed that such a scenario was impossible, but we have already seen a rapid growth of 1000% in 2013 and 2017 twice in history. Then, by the way, the majority also spoke about the impossibility of a multiple increase in prices, ”Zuborev emphasized.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
