MSTR
Copyright © BusinessAMBE 2023
Key takeaways
Industry experts predict that Bitcoin (BTC) will soon reach a price of $100,000. This goal seemed ambitious just a few months ago, but BTC's recent surge to $90,000 on Nov. 13 and subsequent rise to $94,000 on Nov. 19 show the asset's upward trend. This reports Cryptonews.
Several factors are driving this expected growth. Daryll Netscher, founder of Tren Finance, points to the unprecedented institutional adoption associated with significant political shifts. He points to the strengthening of market sentiment due to the expectation of a more crypto-friendly regulatory environment following Donald Trump 's victory in the recent U.S. presidential election. In addition, Netscher highlights the impact of approved spot Bitcoin exchange-traded funds (ETFs), which create a more accessible entry point for traditional investors.
Insights and predictions from experts
Netscher believes this institutional framework will strengthen Bitcoin's growth compared to previous price increases. He also points to favorable macroeconomic conditions that support Bitcoin investments. The upcoming halving of Bitcoin by 2024, which historically precedes periods of price appreciation, coincides with increasing institutional interest, creating a unique combination of supply reduction and demand growth. This can already be seen in recent BTC purchases by Bitcoin supporters such as MicroStrategy (MSTR) and Metaplanet, with MicroStrategy now holding 1.5 percent of the total Bitcoin supply.
Tim Enneking, founder and managing director of Digital Capital Management, sees Bitcoin's price rise as a result of several factors, including deflation, inflation in fiat currencies, the "fear of missing out" (FOMO) phenomenon and the decentralized nature of Bitcoin with no controlling entity. He also attributes the rise to the growing reliance on the Internet and the ease of transferring cryptocurrencies such as Bitcoin.
The road to $100,000 and more
Enneking notes that Bitcoin's volatility has decreased and attributes this to a shift in the profile of crypto investors every 18 months. This cycle includes institutional entry and the creation of Bitcoin ETFs, leading to reduced volatility. Enneking finds it intriguing to think about President Trump's possible position on the creation of a strategic Bitcoin reserve during his tenure.
Reaching $100,000 will have a significant impact on both institutional and retail investors. While institutions may see it as another milestone, the psychological effect on retail investors will be profound, fueled by increased FOMO. Netscher suggests that this price point could trigger a transformative shift in the way cryptocurrencies are integrated into the broader financial system.
A new era for retail investors
He predicts that $100,000 will validate early institutional users and create a new baseline for portfolio allocations, potentially leading to standardized allocation models for cryptocurrencies, similar to those used for gold and other alternative assets.
Netscher expects a more dramatic transformation in the retail landscape, with unprecedented media coverage and public interest validating the "digital gold" story to a wider audience. He expects this increased visibility to accelerate the development of user-friendly financial products and services, making cryptocurrency more accessible to the average investor.
Market expectations and predictions
Although Bitcoin currently hovers around $93,000, Netscher thinks the current market structure suggests that reaching $100,000 is a stepping stone rather than a ceiling. He cites institutional adoption through ETFs, professional market makers and longer-term investment strategies as providing a more sustainable basis for price discovery than in previous cycles.
Enneking predicts Bitcoin will surpass $100,000 and reach at least $120,000 by the end of next year, citing 4-year historical cycles and a typical 6-month lag between BTC's halving and the start of a bull market, which usually lasts about a year.
Conclusion
Netscher explains that the confluence of the impact of the 2024 halving on supply and the maturing institutional infrastructure creates uniquely favorable conditions for sustained Bitcoin growth. However, he acknowledges that the path beyond $100,000 is likely to include periods of consolidation and corrections, which may be less severe than in previous cycles because of the more sophisticated market participation currently observed.
If you want access to all articles, enjoy our promo temporarily and subscribe here!
© The Content Exchange, source News