Today is the time to review many opinions on the growth of the main cryptocurrency. Let’s make a comparison between what analysts said this spring and now, at the end of the summer. And why are cryptanalysts predicting a “spectacular September”?
What did crypto enthusiasts predict during the spring-fall?
After Bitcoin’s price skyrocketed this spring, its price began to gradually fall at some point. The problem was created by small retail investors who began to sell their assets en masse at the peak of impressively high prices. Many analysts predicted a long recession for Bitcoin after this unprecedented success. Someone even promised a fall to a psychological low of $ 25,000 with a long subsequent freeze in prices.
Not everyone believed it. Even in the worst moments, there were crypto enthusiasts who guaranteed a new rapid take-off of BTC with an updated price ceiling.
One of them was billionaire venture capitalist Tim Draper. He did not adjust his long-term forecast of $ 250,000 by the end of 2022 or the beginning of 2023. Mr. Draper fiercely defended his position on cryptocurrencies, despite the facts of a sagging market.
To understand why Draper is so confident, let’s dive into the past investment world. Draper invested in Bitcoin at $ 8,000. And even then, he predicted movement of the world’s largest cryptocurrency is moving in this direction. We can see it right now.
Draper repeated similar theses more than a year ago, when he confirmed the relevance of an old prediction. He supported the growth with the prediction that in 2 years there will be a lot of crypto sellers.
“Give it about a year and a half and all retailers will be using OpenNode (bitcoin payment processor), so everyone will accept bitcoin,” he said at the time.
Draper also based his forecast on the potential increase in demand for bitcoin as more people use it. As we remember, only 21 million bitcoins can be mined. Today, there are more than 18 million BTC in the world turnover.
What is the current forecast by analysts?
PlanB is promising Bitcoin (BTC) to rise to $ 135,000 by Christmas. At the same time, here’s a prediction of a certain risk of falling to $ 30 thousand in the same period. However, the main stake is in strong growth.
PlanB is confident in this opinion because BTC / USD was trading at $ 48,000. Its recent forecast for a monthly minimum close for August is in line with current prices. If the other four remain highly accurate, then $ 135,000 Bitcoin for 1 BTC is real.
There is also an alternative unlikely model that is worth mentioning after all. We’re talking about logarithmic diminishing returns. Its revised version expects Bitcoin to hit just $ 30,000 by the end of this year. PlanB thinks this is possible, but far less likely than the $ 135,000 Stock-to-Flow model.
“The next months will be pivotal,” said PlanB, in addition to an explanatory diagram comparing the two models.
We cannot say for sure that the price of Bitcoin will be fixed until the $ 50,000 threshold is reached. There is a difference of opinion about the catalyst for the movement of its price. First, these are the results of the upcoming annual summit of the US Federal Reserve in Jackson Hole. Second, it’s about Twitter’s decision regarding bitcoin payments.
However, last week, the main cryptocurrency still exceeded expectations and crossed the $ 50,000 point. Opinions changed again. There are now two fundamental factors that are fueling Bitcoin’s push. The first is the potential Twitter integration of the coin as a tip payment option. The second is the official launch of Bitcoin as a legal tender in El Salvador, which is scheduled for September 7th.
The data hints at a new long-term rally that will take place in the final months of 2021. If it does, it would be the second time the coin would repeat other bull market years after cutting in half, especially the 2013 double top.
Anthony Scaramucci, CEO of SkyBridge Capital, is also supporting the price to the level of more than $ 100,000 by this winter. Bitcoin (BTC) could reach $ 100,000 by the end of the year, he said. This is mainly due to the exponential growth in demand every month.
“The point is a limited and fixed supply of bitcoins. Demand is growing steadily, month after month,” Scaramucci said in an exclusive interview with Cointelegraph. “As long as I can see it, I can see how these prices are going up. So, we will continue to focus on the $ 100,000 threshold,” he explained.
Scaramucci was once negative about crypto, but last year he founded the first BTC fund SkyBridge Capital with an investment of $ 25 million. Since then, his company has consistently accumulated this type of asset.
“We now own between $ 650 and $ 700 million of bitcoins in our portfolio,” Scaramucci said.
Scaramucci is convinced that the mainstream cryptocurrency is growing faster than tech giants like Google, Facebook, and Amazon. He predicts 1 billion Bitcoin users by 2025.
“This is a technology and a product of the future, and the future is coming faster than people expect.”
Why do analysts talk about “spectacular September”?
Cryptocurrencies have skyrocketed this year. This is due to the increased institutional interest of regulators and the development of technologies for decentralized financing (DeFi) and non-fungible tokens (NFT). Additionally, according to a recent report from MacRumors, Twitter Inc. can lay the foundation in the Tip Jar feature to allow for hints for bitcoins.
Some analysts point out that the announcement of a large volume of Bitcoin purchases should appear this week, as attention increasingly focuses on a new battle for record highs in BTC.
As Cointelegraph reports, the first two days of September are drastically different from the historical rates of September. September has always been a stagnant month for the cryptocurrency markets. Looking a little ahead, institutional reporting could make the coming weeks even more intriguing.
“Many large and important organizations bought bitcoins over the summer,” said Mike Alfred, Founding CEO of BrightScope & Digital Assets Data. “They will announce their purchases between September 7th and November 19th. We recommend you enjoy these fireworks. “
Thus, a bullish trend in Bitcoin is promised by analysts and many large venture capitalists at the same time. BTC’s price of $ 180,000 is desirable for many and beats the even more optimistic minimum target of $ 135,000 according to PlanB. At least, today we already know for sure that bitcoin is undeadly entrenched in everyday life. All of us will not be able to ignore it.