Institutions continue to predict a $100,000 price for Bitcoin
Even as Bitcoin struggles to regain its recent high at $42,000, many continue to believe that the price will touch $100,000 by year’s end
Despite Bitcoin’s recent slowdown, with the price currently around $32,000, the leading cryptocurrency is still showing strong technical factors after a rise of almost 40% in the last thirty days. Not only that, even following the correction of the last few days, which has Crypto Bull seen the digital asset retreat from its just-established all-time high at around $42,000 to its current value, Bitcoin is still in the black over the last 12 months, recording almost 300% growth.
In this regard, since the fourth quarter of 2019, several mainstream financial players have been predicting big things for Bitcoin (BTC), especially as governments around the world continue to print money in the form of „economic stimulus packages,“ spreading fear of inflation and an impending economic disaster that could potentially result in an unprecedented global recession.
For example, during the second quarter of 2020, the US economy experienced an unparalleled slump. The gross domestic product of the world power, which outlines a nation’s total output of goods and services, fell by 31.4%.
In the wake of these developments, including money printing at alarming rates by central banks around the world, many investment firms and banking institutions are beginning to see a future for Bitcoin, especially as a hedge against currency inflation, despite its current levels of volatility.
Many institutions see BTC at $100,000 and beyond
In the early days of the year, the strategy team at US banking conglomerate JPMorgan Chase, led by Nikolaos Panigirtzoglou, said that a theoretical target of $146,000 and above could be sustainable for BTC by the end of 2021, furthering the narrative that sees the digital currency as an excellent candidate to replace gold as a long-term store of value, especially for a nascent base of younger, tech-savvy investors.
Similarly, new data released by investment firm and hedge fund Pantera Capital confirms JPMorgan’s sentiment regarding BTC, suggesting that its price action is accurately following the Stock-to-Flow model, reaffirming the belief that the digital asset will reach $115,000 by August 1.
The S2F model developed by PlanB studies BTC’s halving events that occur about every four years, and how they play a direct role in boosting the coin’s value about six months after each cycle. In this regard, it is clearly visible that following each of the previous three halving events, Bitcoin has seen considerable growth. For example, after the halving in May 2020, the price of 1 BTC was equivalent to $8,000: exactly six months later it had crossed the $15,000 level.
Raiffeisen Bank also used the S2F model in a recently published report to determine the potential direction of Bitcoin in the near future. According to the company’s research team, the price could reach targets beyond the $100,000 mark. „Now that the value has more than tripled in 2020 and momentum remains strong, further gains in the future should not be surprising,“ the study explains.
Other notable traders in the world of mainstream finance bullish on BTC in the short term include individuals such as Andy Yee, Public Policy Director for Greater China at cross-border payments provider Visa, who believes this rally is different from that of 2017, as it marks a transition from highly speculative, featureless tokens to Bitcoin and Ether (ETH).