A few months back I wrote a quick blog post about Bitcoin surpassing its previous $20,000 all-time high, and some reasons why I thought it had happened.
The two main reasons were the timing of the rally, right as we expected after the halving, and the big institutional uptake – with many high net worth individuals adding BTC to their portfolios, and also the addition of Bitcoin to the balance sheet of very prominent companies such as Square.
As the bull market is now in full swing, I would like to bring your attention to another blog post I wrote back in 2018, where I predicted what the next all time high would be. Doing some simple charting and basic fear/greed forecasting, the prediction was that we would hit $100,000 BTC by December 2021:
While my all time low of $1,800 in 2019 didn’t manifest, we did hit a low in early 2019 of around $3,600. My timing was accurate, just the amount of capitulation didn’t extend quite as far as I expected.
I still stand by my prediction of $100,000 by December this year. I think this rally is still in its infancy, and everything points to a large inflow of capital coming into Bitcoin in the coming months.
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One interesting development has been Tesla’s decision to invest $1.5 billion into Bitcoin, which has already doubled, and their decision to accept Bitcoin as payment for its cars, which it has publicly said it will not be converting into fiat but instead holding as BTC.
Another big development in the crypto space is VISA’s decision to start settling its payments using USDC which transacts on Ethereum. While that may just sound like a “pretty cool” development, it’s much bigger. VISA is now bypassing the fiat system to move money and has decided stablecoins on Ethereum are safer and cheaper. That is very significant.
Thirdly, and one that is truly making this rally a perfect storm for Bitcoin, is the amount of stimulus coming out of not only the US but many other countries too. Fiat currencies are being devalued at the fastest rate in history, with trillions of dollars being printed at whim.
Also very encouraging (but not unexpected) have been the many billionaires coming out and saying publicly they are crypto-bullish and exposed to Bitcoin and other cryptocurrencies in their portfolios – Chamath Palihapatiya, Mark Cuban, Stan Druckenmiller, Peter Thiel, Cathie Wood, Paul Tudor Jones, Jack Dorsey – the list continues and is constantly growing.
Bitcoin to $100,000? I’m banking on it.
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Disclaimer: Nothing on this website constitutes financial advice. I am not your financial advisor. Always do your own research before investing.