By FintechNews staff
-Despite having fallen by nearly 30% since its November all-time high, Bitcoin is in a consolidating bull market and on its way to $100,000, according to a Bloomberg Intelligence report. The paper said it is unlikely that BTC’s bull run has come to a halt and predicts the fixed supply to sustain increasing prices.
“The key question facing Bitcoin nearing the onset of 2022 is whether it’s peaking or simply a consolidating bull market,” the report said. “We believe it’s the latter, and see the benchmark crypto well on its way to becoming global digital collateral in a world going that way.”
The report also highlighted how this year’s corrections have made the asset stronger and its bull market healthier, as Bitcoin endured and got past China’s mining ban to make new highs.
Further mainstream adoption will lead to increased demand for bitcoin, and developments in new exchange-traded funds and futures and legal tender status in El Salvador are examples of this process. According to the report, as BTC issuance declines and its awareness increases, prices are expected to jump and volatility to diminish.
Greater regulatory clarity in the U.S. for Bitcoin might also increase its acceptance among certain types of investors and help fulfill an even higher demand for the asset. The report said next year might be pivotal in that sense, as the country looks set to embrace cryptocurrencies with more detailed legislation and a better understanding of the technologies from government officials.
-Other analysts are way much bullish, and think Bitcoin is going to $500.000. And the rationale is simple. Bitcoin, in its most fundamental form, is the digital version of gold. The gold market is an $11 trillion market. If Bitcoin gets that big, you’re talking an $11 trillion market on 21 million tokens, which implies a price per token of about $500,000.
Of course, that back-of-the-envelope math rests on the huge assumption that Bitcoin is, indeed, the digital version of gold.
-However, not all market players hold the same opinion as PlanB. In fact, long-time Bitcoin skeptic ‘Mr. Whale’ has been openly critical of PlanB’s optimism, stating that the analyst should now delete his Twitter account as his model was nowhere near its predicted worst-case scenario price of $138,000.
