Strategist at New York-based Fundstrat Global claims that the Bitcoin bull run is not yet over and will see a rise of over 100% right here! So what are the factors that will drive the Bitcoin price to $ 100,000?
Would Bitcoin be $ 100,000?
The pullback that Bitcoins initiated after reaching $ 64.80 and hitting 2021’s high has turned into a major correction.
Shortly after recording the new peak, Bitcoin price made one of the biggest corrections it has seen since the parabolic run began. So could this fix have ended the Bitcoin bull run?
According to one of the industry’s leading research firms, this price action indicates that we will likely see a much larger uptrend and 2021 will be a much better year. This move, which is likely to happen, could make the Bitcoin $ 100,000 target possible!
So what are the factors that will drive the Bitcoin price to $ 100,000?
A strategist at Fundstrat, a major market strategy and cryptocurrency research firm based in New York, says a healthy retreat could strengthen the bitcoin $ 100,000 target .
Fundstrat’s Digital Asset Strategist David Grider thinks Bitcoin is still heading towards the 100,000 target, despite the recent correction that dropped nearly 20% from its all-time high of $ 65,000.
Grider says a healthy correction can strengthen Bitcoin’s bullish outlook. In an interview with Yahoo Finance, Grider said:
“Of course, we don’t see this as something that leads to a 2017 summit, but rather as the factor that leads the market into a healthy cooling period so that the upward trend can continue.”
Grider also points out that despite BTC’s withdrawal, alternative cryptocurrencies continue to perform relatively well. Ethereum, for example, has only lost around 5% since reaching its all-time high.
One of the things that gives us some confidence in the long-term cycle, the analyst says, is that large digital assets like Ethereum can largely survive recent declines.
According to the analyst; The relatively low volatility in these cryptocurrencies indicates that the peak is yet to come, which means the market is still strong.
“I think this is a strong indicator that the big money in the market is moving with capital, and we do not witness massive capital flight.”
Bitcoin could still be in the middle of a bull run!
Proponents of the stock -to flow model believe that the upward trend in Bitcoin will continue. The idea behind this popular model is the fact that as the supply of the asset decreases, its price will increase.
That is, the model reveals the proportionality between the size of the available reserves of an asset (stock) and how much (flow) the producer of that asset can create each year.
Stock-flow model (S2F) is known as a model developed to compare the inflation rates of financial assets. It is obtained by dividing the amount of the said asset traded in the market by its annual supply.
This variable, called the stock-to-flow ratio, deals with the portion of a commodity or asset held by investors compared to the new amount of production. For example, gold stock-to-flow ratio is the highest asset. Therefore, even if the gold price falls in the short term, it never falls in the long run. Therefore, one of the main factors that makes Bitcoin valuable is that its supply, like gold, is limited.
Bitcoin, like gold, shows a high stock flow rate. Plan B, known as the creator of the stock flow model, reveals that Bitcoin’s Stock-to-flow rate is set mandatory every four years as a result of the halving activity.
PlanB says the Bitcoin bull run is not yet over and the biggest crypto will continue to see new peaks. And, according to the model, it predicts that the value of BTC will increase 10 times in the next few years.
He also says that BTC is still in the middle of a long-term bull run and could reach a stock flow target of up to $ 288,000.
However, many analysts continue to maintain bullish expectations, pointing to past cycles where BTC has made huge gains after a big drop.