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A new impulse. Why may Bitcoin cost USD 100K already this year?

Over the past three months, the main cryptocurrency has tripled in price. Experts have named the conditions under which it would grow twice more this year.

On the night of March 18, the Bitcoin price again approached the $60K mark. The first cryptocurrency began to actively grow in price after it had broken the $20K mark in December last year. The value of the cryptocurrency has tripled in three months.

Now many traders and investors expect the growth of the price of the first cryptocurrency to the next important mark of $100K. Twitter users even launched a flash mob, in which they install a photo with "laser eyes" in the avatar and promise not to change it until Bitcoin would reach $100K.

In the flash mob participate John Lennon's son Sean, Tesla CEO Elon Musk, Morgan Creek Digital co-founder Anthony Pompliano and others. At the same time, the founder of Heisenberg Capital, Max Kaiser, predicts that the growth of inflation of national currencies may lead to the exceeding of Bitcoin the $100K mark and reaching the level of $220K already this year.

Many experts agree that the probability that the first cryptocurrency in 2021 would rise in price to $100K is very high. The dynamics of Bitcoin at the moment almost perfectly corresponds to the dynamics of an asset with a deficit value. According to the Stock-to-Flow valuation model (used to estimate the value of deficit assets), the goal of $100K is achievable this year.

Interest of institutional players

The first reason for the growth of Bitcoin quotes is the high demand for the first cryptocurrency from institutional players, experts of FXOpen note. Their interest is growing against the background of the record value of the flagship cryptocurrency and would only stimulate its growth in the future.

The policy of the US Federal Reserve and the economic instability that has arisen as a result of the unprecedented emission of new dollars may play a role in the growth of Bitcoin price.

If the Stock-to-Flow scenario would continue to be realized, then the price of $100K per BTC is projected in late summer — early autumn 2021.

Growth after correction

In the coming weeks, a market correction is inevitable, as the market would need a "new impulse". It may be caused by a high concentration of short positions on large crypto exchanges when the trend would change.

Back in December, it was widely believed that such a scenario was impossible, but we have already seen the rapid growth of 1000% twice in history in 2013 and 2017. Then, by the way, the majority also spoke about the impossibility of a multiple increase in the price.

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Comments: (1)

Adrian Pollard
Adrian Pollard - ISTANEX - https://istanex.com/ - Turkey 25 March, 2021, 09:34Be the first to give this comment the thumbs up 0 likes

The figure $100k may seem insane to a new comer to crypto but all you need to do is look back when the BTC market and global interest was less but it will still 10x in bull cycle.

Taking that into considrations $100k USD can be considered a tame pridiction.

Greg Nilson

Greg Nilson

Financial Analyst

FXOpen

Member since

24 Jul 2018

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Charlestown

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