Bitcoin surpassed $ 10,000 on February 9 to break an important psychological mark and hit its highest level since October last year.
For many observers, however, $ 10,000 is just the beginning of a rise in cryptocurrency to a much higher level. Anthony Pompliano, co-founder and partner at Morgan Creek Digital, believesthat Bitcoin’s price could reach $ 100,000 in late 2021 due to limited supply and increased demand:
“Bitcoin has just reached $ 10,000. I still believe Bitcoin will rise to $ 100,000 by the end of December 2021. Limited supply. Rising demand. Time will tell.”
For Bitcoin investors, this is an important event, like cryptanalyst Willy Woo commented on Twitter today:
“This is the breakthrough. Fundamental investment activity supports this $ 10,000 outbreak.”
Source: charts.woobull.com
BitMEX co-founder and CEO Arthur Hayes is also optimistic about the future development of the Bitcoin price. He said on Twitter:
“Nothing can stop me, I’m on my way to the top! The race is being won slowly and steadily. Let us take the stairs #bitcoin Climb $ 20,000. “
Limited supply and increasing demand
Bitcoin has numerous attributes that are critical to its success. The upper limit of the supply corresponds to a deflationary and secure monetary policy. Bitcoin can also be compared to gold in many ways, since Bitcoin has to be mined digitally and also has a limited and finite offer.
Only a total of 21 million Bitcoin can be funded. Around 18 million Bitcoin have already been generated. Bitcoin is halved in May this year, reducing the supply of new Bitcoin to around 1.7% annually.
Since 2010, bitcoin has been subject to high price volatility, which has sparked a debate over the underlying reasons behind the demand for bitcoin by economic operators. The majority viewed Bitcoin as an asset for speculation in the short term. And at the beginning of the trade war between the United States and China at the beginning of last year, the price of Bitcoin skyrocketed.
Many people have shifted their stocks, fiat currencies and assets in search of a safe haven in favor of Bitcoin. In the long run, demand could be driven by short-term expectations about Bitcoin as a possible medium of exchange.
Michaël van de Poppe of Cointelegraph believes that the Bitcoin price has reached a temporary high and is likely to go down soon:
“Still, I think we’ll see a top here for a while and only see a sideways move. The best thing would be $ 8,750-9,000 as a long-term goal. But I doubt we’ll make it … if it does from here has a breakthrough and is targeting $ 10,400-10,900. “
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