Bitcoin Price has touched extreme highs and sudden lows in the past few months and the absolute mercurial nature of the bitcoin stock price has made the trends quite unpredictable. However, the CEO of a cryptocurrency analysis firm called Chain analysis concurred that while the trends have been topsy turvy in the recent period, bitcoin price is bound to touch $100,000 by the end of this year. The CEO of Chain analysis, Michael Gronager has been dead sure about the fact that Bitcoin price USD would exceed a hundred thousand dollars. This surge in bitcoin prices could be owed to the fact that with the onset of 2021 and the world just keeping its head above the pandemic, a larger number of people have accepted the bitcoin, which is by far the largest cryptocurrency globally.
Why was there a fall in Bitcoin price in the summer of 2021?
During an interview with Bloomberg, the CEO explained the reasons behind the sudden fall in bitcoin prices earlier in summer. The bitcoin market had a huge fall off after it helmed a proud 65,000 USD price in the stock market, during the month of April. April is the cruelest month, but May proved to be even crueler for the bitcoin stock price, which faced a drastic sell-off, because of which they had to adopt a range-bound trading strategy for some time. He explained that the fall resulted because of a consolidation period which happened to coincide with upgrades happening all over the crypto space and other improvements. Since the landscape was under work, the prices automatically hit a low. However, the bitcoin stock price has hit a surge ever since the summer sell-off. The prices have shown an upward trend ever since May and the graph has never gone down. The CEO was affirmative of the fact that the crypto market was bullish.
He mentioned in the interview with Bloomberg “In the bear market a lot of interesting things have been built and that facilitates a new bull market.” for those who don’t understand the terms bear market or bull market, the bear market is typically a season of falling stock prices, which could exceed a twenty percent fall in stock prices or more. The bull market on the other hand is a market that presents trends of sufficient economic growth and rising stock prices. Thus Gronager hinted at the fact that the summer bear market had the latent seeds of a growing and booming bull market for cryptocurrency.
He also commented on the fact that people need to study the trends for the stabler versions of crypto like bitcoin and Ethereum. They have shown a trend of the growing year after year and with a growth rate that exceeds every year. Bitcoin prices stand just above the crucial threshold market level of fifty thousand dollars. The market saw a one-day surge of a whopping three percent rise, which resulted in the stock prices going up by one thousand USD within the weekend. It may seem that Gronager was not just being over-confident in saying that while one may say that the moon is the limit, bitcoin prices can and will exceed that.
How will Bitcoin stock price touch $100,000 by the end of the year?
The crypto market now shows a stock price rate of seventy-four percent year to date and of about 369% within the last year itself. McGlone who is a crypto analyst for Bloomberg released a chart of bitcoin prices as a tweet which clearly showed that bitcoin reaching the $100,000 mark this year was a clear possibility. The analyst explained that it was indeed plausible for bitcoin to reach that unprecedented surge. According to him, if it does happen, it would be because of the decline in the supply of Bitcoin, as per the bitcoin protocols. For those who are unaware of this information, the bitcoin protocol claims that no more than twenty-one million bitcoins could be in circulation within the market. McGlone believes that because of this limit being put on the number of bitcoins in circulation, the declining supply will eventually result in a surge in bitcoin prices. Apart from the dearth of bitcoins, the surge in bitcoin prices could also be predicted from previous trends. People have also claimed that this nature of bitcoin shall prove as an inflation hedge. An inflation hedge is a kind of investment that is made to act as a shield against market inflation. It guards the investor against a drop in the purchase potential of currency.
The Bloomberg analyst also mentioned that if any action is taken on behalf of the US authorities to maneuver the prices of crypto or just any move that would change the crypto game in general, it would only result in a further surge in Bitcoin prices as well as the prices of Ethereum.
Conclusion:
The crypto forecast thus seems to have been borne from a ground seethed in prior evidence. All of the previous market trends show that there will be a surge in Bitcoin prices and it is very likely to touch the hundred thousand US dollar mark, which would be a record for the Bitcoin industry. Michael Gronager was thus accurate in deeming that the crypto market is bullish and he claimed that even now, they are bullish, despite the summer-fall they faced earlier in the year. It now remains a matter of waiting and watching, as to whether bitcoin prices reach the hundred thousand dollar mark or as Gronager says, even exceeds the ‘moon’. In the long run, if investors are looking forward to investing in cryptocurrency at present, this might be the ideal time to buy it, because henceforth the predicted price graph only shows an upward surge.
