Since June 2019, Bitcoin has been in a re-accumulation phase, shared Tuur Demeester. He explained on Twitter how a year back bitcoin broke out of its accumulation phase that lasted about nine months only to start the re-accumulation.
As such, “a break out of this band will likely ignite another parabolic rally,” he said.
Bitcoin can Rally to $50k -$100k in Next Bull Cycle
Involved with Bitcoin since 2013, Demeester has been here when the world’s leading digital asset went through its first “crazy bubble” that took BTC from $1 to $30.
This time, he believes the bottom is in and the next bull market is here. This cycle according to him could easily take us to $50,000-$100,000. Demeester said in a conversation with Messari,
“Now we're back in a bull market. I think for sure $3,000 was the bottom and I don't think we'll go below $6,000 again. I think a price target of like $50,000 is not insane at all especially given just how crazy the money printing is. I would even say like between fifty and a hundred thousand.”
However, it all depends on the buying power of the USD, for instance, if inflation takes the cost of a bicycle from $200 to $2,000, bitcoin would have to discount that.
Institutions are here, Retail is to come
Currently, bitcoin is trading around $9,800, up 157% from the March lows, and recording nearly 34% gains YTD. But, “retail is still not paying attention,” said Demeester.
According to him, they have been shaken out and there's lots of despondencies. Whoever stayed invested probably got burned between 2018 and now and that's gonna keep people away for a while still, he said.
But they will only come back once when we are close to 20,000 or beyond that. What’s driving the current market is institutions.
“Right now it's institutions that are interested and it's kind of like a land grab phase where this is gonna get big.”
Bitcoin is not correlated with the traditional financial system which is in all kinds of trouble. Moreover, it's really scarce so these institutions are just kind of staking their claim and then see what's gonna be built on top of it later.
So, the price right now is driven mostly by institutions — billionaires, family offices, and large institutions such as Paul Tudor Jones.
As such, the bitcoin market is still in the infrastructure phase despite JP Morgan becoming the bank for Coinbase and Gemini. It's all about building the rails, both legal rails and financial bridges between the financial industry and Bitcoin.
He expects 2020 and 2022 to be the deployment phase where we really go mainstream and people can start using it for many different purposes.
You can watch the full interview here: