Bitcoin (BTC) has been quite volatile this year. From a low of around $30,000 in May-June to a high of $64,000 in April, the world’s largest cryptocurrency has been on a rollercoaster ride. It was worth $50,000 a month ago, then dipped to $40,000 before increasing to over $62,000 USD earlier yesterday. Bitcoin has managed to recover every time it has lost value over all of these ups and downs, providing investors hope for its long-term future. The most recent increase has fanned expectations that Bitcoin is poised for a historic rally.
The biggest question on everyone’s mind right now is whether Bitcoin will hit $100,000 this year. How much water can it store, despite the sound concept? Is this a plausible scenario? Let’s take a look at what Bitcoin has going for it to see whether this is achievable.
Bloomberg’s Crypto Outlook report has fueled the belief. According to the research, Bitcoin is more likely to reach $100,000 this year than to drop below $20,000. Bitcoin has gained approximately 25% in the last month in line with our projection.
This year’s collapses and rallies have refocused attention on Bitcoin, giving it a household brand. The onlookers began to notice the growing popularity of a new form of virtual money that was yielding massive rewards for some. Add in the support of wealthy tech entrepreneurs like Elon Musk, CEO of Tesla and SpaceX, and Jack Dorsey, CEO of Twitter.
Investors are also expecting a repeat of the rise that Bitcoin saw around this time last year. Bitcoin was selling at a little over $11,000 on October 16, 2020. It nearly quadrupled in value in the last months of the year. Bitcoin was trading at $30,000 on January 1 this year, and it continued to rise until May when a market meltdown caused by a Chinese crackdown on miners wiped off the majority of its gains.
1 Year Bitcoin Price Chart – Source: CoinMarketCap