After expanding to a relatively high level of around $53,000 two weeks ago, Bitcoin seems to (Bitcoin) Is recovering to its previous historical high. However, in a series of events in the past week, the market value of the world’s largest cryptocurrency has shrunk by nearly 13% in terms of total market value, and the current transaction price of a single BTC is close to $45,800.
In other words, the above-mentioned fluctuations seem to have completely unmoved the cryptocurrency research department of Standard Chartered Bank. Analysts Refers to Bitcoin’s recent plunge As a “false drop”, it was also reiterated that the year-end goal of $100,000 per BTC is still achievable for the flagship cryptocurrency.
The banking giant believes that by the “end of 2021 or early 2022”, Bitcoin will reach $100,000, a move that will be accompanied by a sharp increase in the value of Ether (Ethereum) Too.In fact, the research team Point out The “structural” value of Ether is between 26,000 USD and 35,000 USD, however, in order to achieve this, BTC must be expanded to 175,000 USD.
To better understand whether the year-end forecast of $100,000 per BTC is still feasible, Cointelegraph contacted Ben Caselin, head of research and strategy at cryptocurrency exchange AAX. In his view, last Tuesday’s sell-off was a typical “sell the news” move, adding that he thought it might be a well-designed “bear market trap” at work. Caselin told Cointelegraph:
“I do expect Bitcoin to still have a value of $100,000 this year-if anything, $100,000 will be mediocre. In fact, if we follow PlanB’s inventory-to-flow, we are still moving in a lower range , Tracking the “worst-case price”, last month was 47,000 U.S. dollars, September was 43,000 U.S. dollars, and not less than 135 U.S. dollars K at the end of the year.”
He added that as far as Bitcoin is concerned, viewing on-chain data is more valuable than just viewing price technology because it allows users to obtain a higher-resolution view of what is actually happening on the network in real time.
Similarly, Tommy Schreiner, a senior research analyst at the encrypted data provider TheTIE, told Cointelegraph that Bitcoin could still reach $100,000 by the end of 2021:
“US$100,000 seems to be as ridiculous as last year’s US$50,000, but some factors cannot completely rule out this situation. The recent correction is mainly due to market deleveraging, because a large part of leveraged open positions have been erased and effective All traders who were bullish on YOLO were reset.”
Schreiner further emphasized that despite the global economic turmoil, the US Federal Reserve has shown no signs of stopping the money printing press, which he believes is a good sign for relatively risky assets such as cryptocurrencies.
In addition, he emphasized that in recent months, first-tier solutions such as Solana, Terra, Avalanche, Polygon, and Fantom have continued to bring new funds to the global digital asset ecosystem, which may also help stimulate the value of BTC.
“NFT [nonfungible tokens] Despite pricing a lot of retail users, a lot of Ethereum is burning every day. So if $100,000 seems ridiculous, maybe look at how far the cryptocurrency has gone in just one year,” Schleiner said.
Nick Spanos, co-founder of Zap Protocol, believes that El Salvador has recently accepted Bitcoin as legal tender, which makes the digital currency moving towards Reach the $100,000 mark by the end of the year“By then, Ether also hopes to reach $10,000,” he said.
Some doubts about $100,000
Lennix Lai, director of financial markets at cryptocurrency exchange OKEx, believes that although Bitcoin’s future seems to be ready, this does not necessarily mean that this major digital currency will close at a price of $100,000. He told Cointelegraph:
“I think we will see a short-term correction because the United States is about to withdraw from the Bitcoin market, and Bitcoin is still very sensitive to the global money supply. At the same time, however, cryptocurrency is becoming a legal alternative asset class, and everyone is in Look for certain parts of asset allocation.”
Lai does admit that if in the near to mid-term future, even if 1% of the world’s total wealth flows into Bitcoin, then the price target of $100,000 per BTC will be easy to achieve.
Similarly, for Igneus Terrenus, head of communications at the cryptocurrency exchange Bybit, the most convincing case of Bitcoin reaching $100,000 this year is still the approval of the Bitcoin Exchange Traded Fund (ETF) in the United States. In his opinion , Which will help to open the BTC market to new participants, such as retirement funds and wealth management products.
“The Securities and Exchange Commission will [BTC ETF] The new decision from September 8th to November 14th-still within the 2021 calendar year. Anecdotal evidence shows that almost all wealth management institutions have been asked about Bitcoin risk exposure by clients. The ETF may be the right tool to achieve this goal,” he told Cointelegraph.
Bitcoin’s technical side looks strong
Despite the recent volatility, Bitcoin’s fundamentals currently appear to be quite strong.In this regard, Charles Edwards, the creator of the Hash Ribbon, one of the most famous Bitcoin indicators in the world, recently claim As long as the flagship cryptocurrency can hover above its most important $42,000 resistance zone, it will remain green.
At the end of last year, Edwards Expected By the end of 2021, Bitcoin’s price target may be between US$100,000 and US$200,000. He stated that he would be “shocked” if Bitcoin did not reach $50,000 in 2021, a prediction that was realized after the currency reached an all-time high of $63,000 earlier this year.
In Edward’s view, one of the most important differences between this rally and previous ones is that the overall level of retail interest seen is relatively low. In fact, to hit a record high this year, he believes that Bitcoin must spend a considerable amount of time in the range of more than $50,000. “I think this will re-attract more retail interest,” he said.
Although Edwards may not consider $100,000, he believes that the market is slowly but surely approaching the price point. However, in order for this to happen at any time in the next three to four months, he believes that either retail interest needs to be regenerated, or large purchases from leading S&P 500 companies such as Tesla are needed.
Look to the future
Compared with previous events, the currency impact of the 2020 halving has so far been quite mild, and the value of Bitcoin has only increased by 4 times. In contrast, we can see that in the years following the 2012 and 2016 halvings, the value of BTC has increased by 55 times and 15 times, respectively, indicating that it is still possible to rise to $100,000.
It will be interesting to see the impact on the entire cryptocurrency market in the coming days, especially as regulators around the world continue Tighten their hands In this fledgling industry.