The Bitcoin price has increased fourfold since March.
The Bitcoin ( BTC ) price has quadrupled in the past nine months. That means another similar rally could hit $ 100,000 soon.
Dan Tapiero, the co-founder of 10T Holdings, doesn’t think Bitcoin will hit $ 100,000 in the next nine months. But, according to him, that shows how fast the asset is growing and how great its long-term potential is. He wrote :
„Noteworthy when you consider that #Bitcoin was just 9 months ago at $ 4,000. To date, it’s rallied nearly 500 percent. A rally 500 percent from here brings us to $ 100,000 #BTC . Don’t think it can happen in 9 months, but that would just repeat the past 9 months. Difficult to pin down a market that’s growing so fast. “
Why is Bitcoin growing so fast?
Bitcoin moved rapidly through 2020 due to three factors. First, the reduction in new supply following the halving in May has significantly reduced selling pressure.
Second, rising institutional demand has increased buying pressure for BTC significantly.
Third, longtime BTC owners continue to show their confidence , which has fueled market sentiment.
For institutions, Bitcoin’s sudden drop to below $ 4,000 in early 2020 was also a very attractive entry point. During the March slump caused by the pandemic, it was one of the worst performing assets, falling about 50 percent on BitMEX to just $ 3,596.
Since then, Bitcoin has proven its resilience and stamina, and eventually bounced back to its all-time high. It hit a new record high of over $ 19,982 on Coinbase on December 1 .
At the same time , investors like MicroStrategy CEO Michael Saylor believe that BTC is now in a much stronger position compared to the previous bull market. For one thing, today’s interest from private individuals is only a fraction of what it was during the peak of the rally in December 2017.
In addition, Bitcoin is now more often seen as a digital store of value and a must in every portfolio . This has strengthened Bitcoin’s image among large investors, but record institutional inflows also contributed. All of this makes a six-digit rate possible as early as next year. Some analysts have even forecast $ 200,000 and more by December 2021 .
Often referred to as „digital gold,“ one of the bullish aspects of Bitcoin is that Bitcoin ties its value to the precious metal. Bitcoin’s market cap is $ 300 billion, which is just 3 percent of the market cap of gold, which is $ 9 trillion. US dollar lies. When BTC hits $ 100,000, there would be only 23 percent between them.
Bitcoin value has risen 100 percent versus gold since September. With 1 BTC you can now buy over 10 ounces of gold. At the same time, analysts have observed record outflows from the gold market in recent months. Some of that money ended up in Bitcoin .