Dave Portnoy will be back to Bitcoin

Bitcoin increased by 500% from March. Why?

During the past nine months, the world’s most considerable cryptocurrency Bitcoin price has quadrupled, which indicated another similar rally would put $100,000 on the table in the foreseeable future.

According to 10T Holdings’ co-founder, Dan Tapiero does not anticipate Bitcoin to reach $100,000 in the following nine months. However, he announced that it demonstrates how fast the asset is increasing and its long-term potential.

He announced that nine months ago, the dominant cryptocurrency was at $4,000. After that, it increased by nearly. A 500% rally from here puts us at $100,000. Dan Tapiero added that he does not await it can occur in nine months. However, it would be replicating what it’s done in the earlier nine months.

Moreover, some analysts have even prognosticated $200,000 and higher by December 2021.

During 2020 year, the largest cryptocurrency has increased rapidly, and there are reasons for the rise.

  • The reduction in new supply after the halving in May has decreased sell pressure.
  • The rise in institutional demand has caused the buy-side pressure for Bitcoin to increase.
  • Long-time Bitcoin holders have continued to express confidence, raising market sentiment.

Furthermore, for institutions, the swift decline of BTC to $4,000 in early 2020 was also a compelling entry point. In March, it was one of the worst-performing assets throughout the epidemic. Bitcoin fell by around 50% and settled at $3,596 on BitMEX.

After that, the dominant cryptocurrency has shown resilience and staying power. It eventually rebounded back to its lifetime high and hit a new all-time high of more than $19,982 on Coinbase on December 1.

Bitcoin is in a much more powerful position than the earlier bull cycle

According to MicroStrategy CEO Michael Saylor, Bitcoin is in a much more powerful position than the earlier bull cycle. He added that today’s retail interest is only a part of what it was during peak euphoria in December 2017.

We know that Bitcoin is often called digital gold. One of the strong bull cases for Bitcoin is closing its valuation gap with the gold. At $9 trillion, Bitcoin’s $300 billion market cap is just 3% of the precious metal. Bitcoin reaching $100,000 would decrease this gap to 23%.

Since September, the Bitcoin’s price has increased by 100% against the yellow metal, and with one Bitcoin now buying more than ten ounces of gold. Furthermore, analysts have noted record outflows from the gold market in the last months, some of which have ended up in BTC.

In 2021, the dollar may weaken, which can buoy Bitcoin and gold.

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