Bitcoin in its ‘Unrestrained Price Discovery’ Predicted to Hit $100k in a Decade or $220k by Year-End
Institutions and family offices that serve the wealthy are front-running each other, trying to get into Bitcoin and pushing BTC to new highs, several times in a day.
Bitcoin smashed yet another record high of $41,650 on Friday to reach a $768 billion market cap.
On Thursday, Bitcoin surpassed Tesla, but that was before the latter’s shares bumped up and made Elon Musk the world’s richest person. Currently, the world's largest cryptocurrency is at 7th place, a spot above Facebook but below Tesla’s $773 billion market cap.
Today, Bitcoin BTC 1.53% Bitcoin / USD BTCUSD $ 61,954.03
$947.901.53% Volume 29.08 b Change $947.90 Open $61,954.03 Circulating 18.85 m Market Cap 1.17 t 1 d UNIFY Financial Credit Union and Five Star Bank Allows Customers to Now Buy, Sell, and Hold Bitcoin 2 d Canadian Group-Retirement Savings Company Adds Bitcoin and Ethereum to its Plan 2 d Walmart is Running Pilot Program to Allow Users to Buy Bitcoin at 200 Coinstar Kiosks Across the US seems to be primed for $42k with $50k in its very sight.
But according to many crypto enthusiasts, this is just the beginning.
According to Social Capital’s Chamath Palihapitiya, we are in for a massive rally. “It’s probably going to $100,000, then $150,000, then $200,000,” Palihapitiya told CNBC’s “Halftime Report.” But this could take five to 10 years to achieve, he said.
On Monday, JPMorgan also forecast a $146,000 price target for BTC, but in the long term, the digital asset competes with gold as an “alternative” currency.
Chamath Palihapitiya Social Capital CEO & Golden State Warriors Stakeholder
“The reason [it’s going there] is because, every time you see all of this stuff happening, it reminds you that our leaders are not as trustworthy and reliable as they used to be.”
“So, just in case, we really do need to have some insurance we can keep under our pillow that gives us some access to an uncorrelated hedge.”
Chamath Palihapitiya on #bitcoin in 2013
“If you don’t think that this thing is going to rip…when you have all of this money trying to get in & out of these countries where there’s massive political instability or monetary or financial instability, you’re being naive.”@chamath pic.twitter.com/nETxCz1BdR
— Neil Jacobs (@NeilJacobs) January 3, 2021
However, some see it going even higher.
Anthony Scaramucci, founder and co-managing partner of SkyBridge Capital, is “bullish” on bitcoin’s store of value and sees it “replacing” bullion.
Scaramucci, a former White House communications director, also believes that Democratic control of Congress would be “great” for cryptocurrencies due to expectations of “tremendous” money printing under them.
Bitcoin proponent Max Keiser, who nailed his $38,000 call, is now predicting $220,000 by the end of this year.
At current prices, Bitcoin is also tracking both S2F and S2FX models, but as their creator PlanB notes, “Big question is where does bitcoin find it's new equilibrium, $100K or $288K?”
— PlanB (@100trillionUSD) January 7, 2021
“What we are seeing right now is institutional investors front-running each other, trying to get into the Bitcoin as digital gold train,” said trader and economist Alex Kruger.
On-chain metrics show that there has been a lot of over 1 million buys happening in the Bitcoin market. While institutions have entered, family offices that serve the wealthy are now also rushing in.
“It's whale spawning season,” says on-chain analyst Willy Woo. All of this suggests this bull market is going to be a lot like 2013 than 2017, and we would get a double run-up.
It is reasonable to expect to see a blow off top after such strong rally in the not so distant future. however i dont think this will lead to a prolonged bear market. it is more likely we will see a cooldown and then a resumption of the rally just like it happened in mid 2013 pic.twitter.com/4kBc7FrUGH
— CryptoYoda (@CryptoYoda1338) January 8, 2021
“This would look something like BTC going to $75k then $30k then $200k. Ballpark. The issue is I don't know whether institutions will allow for a 50-60% correction at this point if they are trading the macro narrative,” is what Ryan Selkis of Messari expects.
With Bitcoin in an “unrestrained price discovery in uncharted territory,” retail has also joined the FOMO party.