• According to Senior Analyst, there are three reasons why Bitcoin could reach $100,000 this year

  • According to McGlone, the decreasing supply of bitcoin and growing adoption from various investors could propel BTC to $100,000 by the end of the year.

    The number of people who believe bitcoin will reach $100,000 by the end of the year is growing, with the most recent being Senior Commodity Strategist – Mike McGlone. McGlone predicted that BTC’s value would more than double in the next three months, citing growing mass adoption and declining active supply, among other factors.

    BTC to $100,000

    This year has already been a wild roller-coaster ride for BTC’s price, which soared from below $30,000 to above $60,000 for a new all-time high in a matter of months before plummeting back to its 2021 entry-level.

    Since those dark days in July, it has gained about $20,000 and is now just shy of $50,000. And, despite the fact that there are less than four months until the end of the year, forecasts for a more than 100 percent increase against the dollar within that time frame continue to mount.

    Mike McGlone has also jumped on board, outlining a few reasons. He began by discussing historical BTC trading trends before moving on to the primary cryptocurrency’s decreasing supply.

    This could be viewed from a variety of perspectives. The rate at which new bitcoins are created slows every four years due to an event known as the halving. Following the most recent (third) one in 2020, the rate has now dropped to 6.25 BTC per block.

    We can also include the three million coins that are thought to be lost and inaccessible. Furthermore, long-term holders appear adamant about keeping their bitcoin holdings and refusing to sell even when the price falls, as it did earlier this month.

    This is also consistent with the stock-to-flow model to a large extent. The S2F forecasts a $100,000 price per coin by the end of the year by examining the stock as the size of existing reserves (or stockpiles) and the flow as the annual supply of BTC on the market.

    Adoption also plays a role.

    McGlone’s third argument, increasing adoption, works in tandem with the decreasing supply. According to basic economic principles, if the supply of an asset decreases while demand remains constant or increases, the price should, in theory, rise as well.

    And the primary cryptocurrency’s demand has recently increased. We have major corporations investing billions of dollars in it, some of which have pledged not to sell any shares.

    Institutional investors continue to put pressure on large banks to provide them with regulated venues for receiving BTC exposure. Grayscale’s Bitcoin Trust’s AUM has grown tenfold since late 2019.

    As a result, it’s not surprising that so many different people – from Jordan Belfort, Adam Back, Tom Lee, and Chainalysis’ CEO – believe bitcoin will reach a six-digit price by the end of 2021.

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