Since March 2020, the bitcoin rate has grown by 800%, to the current level of $ 34.4 thousand.On January 8, the cryptocurrency set a new all-time high of $ 42 thousand.This is not the limit, says analyst David Sailer, who started mining BTC in 2011. In an interview with Money Morning, he said that the coin will rise in price to $ 100 thousand by 2022, writes RBC Crypto.
One of the reasons for the possibility of such a scenario, Sailer believes, is the halving that happened in May and reduced the size of the reward that miners receive for mining cryptocurrency from 12.5 to 6.25 BTC. The analyst also noted that it became easier to buy cryptocurrency due to the fact that payment systems and applications such as Cash App, Robinhood and PayPal added support for digital money.
Financial analyst at Currency.com Mikhail Karkhalev believes that the scenario of a rise in the price of bitcoin to $ 100 thousand is not excluded. The expert called the prerequisites for such growth an increase in the turnover of crypto transactions in the PayPal system, record trading volumes and a high level of open interest in bitcoin futures on the Chicago Mercantile Exchange (CME).
“The number of bitcoins in circulation is decreasing, and the demand for it is growing, and now not only from retail investors, but also from professionals, which was not the case in the same 2017. I do not see among all this that could put pressure on bitcoin and cause it to collapse in the next 1.5 – 2 years, ”explained Karkhalev.
He added that it might be worth buying more bitcoins now. Over the past 5 days, the rate of the first cryptocurrency fell by 18%. This is a correction, but not the beginning of a long-term decline, the expert suggested. From his point of view, the growth phase has just begun, however, in the future he may be less impulsive.
Artem Deev, head of the analytical department at AMarkets, also admitted a multiple rise in the price of bitcoin. It can rise to $ 100 thousand, such a scenario is “quite probable”, even if it looks fantastic now, the expert emphasized. He recalled that at the beginning of last year, few people expected the price of BTC to rise to $ 40 thousand.
Deev clarified that now may not be the right moment to purchase cryptocurrency. Since the beginning of autumn, the BTC price has risen by almost 250% and a correction is inevitable. There is a risk that the coin rate will fall to $ 30 thousand, maybe up to $ 20 thousand, the expert warned. From his point of view, this decline will be temporary, increased demand from institutional investors and limited supply will still “push” bitcoin quotes up.
“In the long term, Bitcoin will increasingly become another defensive asset, along with gold. And the deeper the global recession, the more the dollar loses its position against world currencies, the more investors will choose bitcoin as a means of protection against inflation, ”Deev said.
Viktor Pershikov, lead analyst at 8848 Invest, also gave a positive outlook for the bitcoin rate. In his opinion, in 2021 the upward trend will continue, and the immediate goal is the level of $ 50 thousand. Further price behavior will depend on market participants, the expert said. They may decide to take profits by selling most of the coins they buy, leading to a significant correction.
“This year the level of $ 100,000 is not so obvious. To achieve it, bitcoin must act as a truly defensive asset. This may be facilitated by the growth of geopolitical tensions, as well as a significant decline in stock markets, which is not so obvious now. I do not expect to reach the level of $ 100 thousand this year, but goals of $ 50-60 thousand are quite probable, ”said Pershikov.
The expert believes that the reasons for the continued growth of bitcoin quotes are the growth of inflation in the United States and the prices of commodity assets. Investors are worried about a possible depreciation of the dollar and political risks, and therefore are looking for a safe haven to preserve the value of their investments, Pershikov explained. He added that the significant packages of monetary aid planned by Joe Biden will generate an influx of liquidity, and this will significantly support the prices of digital assets.
Stay in touch! Subscribe to Cryptocurrency.Tech in Telegram.
Discuss current news and events at the Forum