With the current market conditions and potential of returns, it is not surprising that market analysts are quick to forecast that the price of Bitcoin (BTC) will continue to rise. The big question is, could the price of BTC hit US$100,000 anytime soon?
From cents to thousands
In January 2021, the price of BTC hovered around $50,000. Not bad for something that started out in just a few cents. In fact, the price of where it is now is extremely remarkable. That is the main attraction factor that has driven speculation for BTC. With this trend, it is no surprise that market analysts believe that the current issues and influencing factors can drive it to double up by the end of the year. Why is that so?
Growing investors community
Rewind back to 3 years ago and one would be forgiven to be skeptical about BTC. Then, investors in the money markets were still on a wait-and-see strategy, not knowing what the future holds for cryptocurrencies. Today, things have changed considerably. Even the most conservative investment institutions are recognizing cryptocurrencies. Where gold was once the go-to engine for investments, many have since turned to Bitcoin.
Sovereign fund looking on
It is very common that investment companies are looking for ways to increase their portfolio of markets by entering the cryptocurrency platforms. This has now spanned towards the others too. Sovereign fund managers that handle pension funds and family investments too are now looking into the BTC market. This, they believe to have a speculative asset and could be used for short-term trading so that they get to diversify their investments for more returns.
Price forecasts have gone berserk
BTC in particular has had some crazy price targets and this is coming from established investment firms. One such instance is from JP Morgan who stated that BTC could breach the $100k mark in 2021 and they are not the only ones. Such forecasts are not based on gut feelings as they are derived through the market value in relation to other assets like gold. Another name that has been involved in stating this is PlanB who made a more exciting forecast. They stated that BTC could reach $100k within 3 to 8 months and that is before 2021 ends.
Another factor that must be considered is that the price of BTC has been breaking its record highs even before the first quarter is over. If this trend persists and based on the trend it has been charting, it will not be surprising that BTC could well hit $100k soon, if not higher.
