Bitcoin has had a year of strong movements, going from its low of US $29K, to its all-time high of US $69K. At the time of writing, BTC is struggling to regain the $50,000 barrier.
In the graph below you can see how Bitcoin in recent weeks has maintained a constant negative trend. Although there are bounces, they are sporadic and last very little.
How are the predictions about the future of BTC?
In the final stretch of the year, some analysts remain enthusiastic that Bitcoin will hit the precious 6 figures, although it seems difficult given the current circumstances. Although with Bitcoin you never know.
Bitcoin has a 68% yield in 2021, after gaining more than 300% in 2020.
Will the BTC reach US $100K?
Now, without further ado, I am going to answer the headline of this post: When will Bitcoin reach 100K? Personally, I think that BTC will close this year between 55K to 60K, a value that must be consolidated in January 2022 to go for more.
The precious 100K will have to wait a little longer, since all risk investments (stock market, commodities, etc.) are conditioned to the general uncertainty of the markets, in the face of the new variant of the Coronavirus, Ómicron.
Bitcoin has 2 advantages that can boost its value, and quickly take it to 100K:
- High global inflation: Fiat currencies lose value daily, while Bitcoin is a powerful alternative to protect against inflation.
- Store of value: I am a true believer that Bitcoin is the best store of value asset out there, even beating gold. Throughout its short history, BTC has shown excellent performance.
If current market conditions hold, Bitcoin should hit the precious 6 figures in the first quarter of 2022. Then maintaining that level will be something else.
Never forget that Bitcoin is a very volatile and fast-changing financial instrument in the short term.
