$100,000 Bitcoin Price Target is ‘Too Low’ Says On-Chain Analyst
In the mid of December, Bitcoin broke the 2017 bull market top $20,000 to reach a new high of $42,000 in January 2021. For now, the leading digital asset is range-bound after seeing a pullback, not seen since the March sell-off. While BTC/USD is currently trading around $37,000, the market has a long way to go still.
The market has long been calling for a $100,000 price target, which would easily put Bitcoin beyond the $1 trillion asset class and put it in the top 3 assets by market cap.
However, this price target is “too low,” according to on-chain analyst Willy Woo.
“Upward bendy motion detected on Top Cap model. Now on track for $200k minimum.”
Pantera Capital’s Dan Morehead has actually called for $115,000 by August 1st, and though it had some slow months, says, “it’s currently right on track.”
This makes sense given that institutional investors are scooping up Bitcoin right, left, and center, as evident from the world's largest asset manager, Grayscale’s BTC stash, which now accounts for 3.4% of Bitcoin’s circulating supply.
Not to mention, CME has been ruling the Bitcoin futures space, with high net worth individual and family offices also coming in as more and more people consider Bitcoin a hedge against weaker US dollar and inflation. Ruffer Investment Management noted,
“Due to zero interest rates, the investment world is desperate for new safe-havens and uncorrelated assets. We think we are relatively early to this, at the foothills of a long trend of institutional adoption and financialization of bitcoin.”
Firms like Ruffer are committed to investing in Bitcoin as a long-term uncorrelated portfolio hedge. The group invested 2%, worth about £550 million, in bitcoin in November last year.
In an update on Monday, Ruffer said it has “a history of using unconventional protections in our portfolio,” citing bitcoin as an example of “a small allocation to an idiosyncratic asset class which we think brings something significantly different to the portfolio.”
Even skeptics like Mark Cuban are coming around. The billionaire investor, who once said a banana is more valuable than BTC, recently told Forbes that “Bitcoin is moved by institutional investors globally.”
He further reiterated that Bitcoin, like any stock, is driven by the demand and supply mechanics.