Bitcoin Will Cross $50,000, Reach $1 Trillion Market Cap Within 18 Months: Obsidian Capital Partner
Bitcoin recently began another swift upward surge which crossed the $10,000 mark and successfully gain another $1,000 before dropping below, to $10,713 at this time. This movement corroborates earlier made forecasts by more than a few analysts who think the coin will still perform impressively and end the year on a heavy note. At the moment, the Bitcoin market cap is a little over $190 billion with the entire market cap more than $324.5 billion but a very bullish prediction from an Obsidian Capital partner sees the current Bitcoin market cap reaching a whopping $1 trillion in the ongoing rally.
Bitcoin Has Done This Before
The Obsidian Capital VC Fund partner, Arnie Hill, has said that the current Bitcoin trajectory is very similar to the 2017 bull run which saw the number one coin attaining its all-time high of almost $20,000. According to Hill:
“Bitcoin has blown past a significant resistance at the $9000 price mark. With order books across exchanges so thin, it proves that funds and institutions have been accumulating $BTC near the lows. The Price of $BTC has been able to move up thousands within a 1-2 timeframe, reminiscent of the 2017 bull run.”
In early April, Bitcoin began a surprising surge signified the beginning of the end of the bear market that stifled the sector since 2018. One of the reasons suggested by analysts as an explanation for the surge at the time was an increased level of institutional investment. This market ingress, even from traditional institutions, pushed Bitcoin and is still pushing it.
What’s the New Proposed High?
Hill suggests that the market is ready for another big move and this time, a jump that big could push Bitcoin past its previous all time high and set a new one. Hill believes that a new cycle will soon begin and with that, analysts will have to find a new “top” for the coin.
Explaining this, Hill said:
“Bitcoin Average Dormancy Theory, an on-chain metric which simply describes the analysis of movement and destruction of Bitcoin along with Dormancy Flow theory, developed by David Puell, shows $BTC this month crossing a pivotal Bull/Bear Threshold. This indicates to me that we are in the full grip of a new cycle, the question for many will now be finding the top.”
Bitcoin Will be a Store of Value (SoV)
The outlook in the market is extremely bullish and can only continue that way especially if Bitcoin doesn’t lose its current momentum. The coin, since the initial surge in April, has experienced some pullbacks but none of it was strong enough to sour the generally bullish sentiments the market had already adopted. Now, Hill believes that the previous all time high is very attainable and could be surpassed if things continue the way they are. An opinion like this is not an outrageous one especially when you consider that it took Bitcoin only three weeks to jump to $20,000 in November 2017, from $7,000, an increase of more than 170%.
Going by this, Hill is hopeful that sometime within the next 18 months, Bitcoin could land somewhere around $50,000 or even more, especially by the next halving. When the halving occurs, it is estimated that 18.4 million Bitcoins would have been mined and this could comparatively shoot the market cap to somewhere between $800 billion and $1trillion.
If this happens, then it would be impossible to ignore Bitcoin’s strength as a trusted store of value even though Gold would still have a much bigger cap of $7.5 trillion. Reaching $1trillion would give it a chance to compete favourably.
Bitcoin is Immune to Facebook’s Libra
Facebook will be launching its own digital currency by 2020 called the Libra. Since its official announcement and the release of a whitepaper, many have predicted that Libra could be strong enough to give Bitcoin a run for its money. However, Hill has a different opinion. The Obsidian Capital partner believes that Libra would help the crypto market and even Bitcoin, specifically,
I think that the rise of Libra and the potential exposure and new adoption that this could bring, is enough to prove to many that the unique decentralized properties of blockchain are valid, and the old monetary system is now being threatened by a global player attempting to supersede the old system with a new form of decentralized currency.
Earlier, Fundstrat’s Thomas Lee had also suggested that Libra’s primary use would most likely be to purchase Bitcoin.