The number of people who believe that BTC can reach $ 100,000 by the end of the year is still growing, the latest of which is Bloomberg’s chief commodity strategist Mike McGlone. McGlone predicted that BTC could more than double its value in the next three months, taking into account the growing mass adoption and declining active supply.
BTC for $ 100,000
This year was like a roller coaster in terms of the price of BTC, as it rose from less than $ 30,000 to ATH more than 60,000 in a few months before falling back. It has gained about $ 20,000 since those dark days in July and is currently just under $ 50,000. And although less than four months remain until the end of the year, forecasts of more than 100% growth against the dollar in this time frame are still piling up.
Mike McGlone also joined and gave several reasons. He first mentioned the historical trends in BTC trading and then the declining supply of primary cryptocurrency.
The rate of new BTC formation decreases every four years after an event called halving. After the last one in 2020, the rate is now 6.25 BTC per block. We can also add three million coins that are considered lost and inaccessible. In addition, long-term holders appear to be determined to retain their BTC as well.
This also largely coincides with the stock-to-flow model, which takes into view size of existing reserves and the flow as BTC’s annual supply in the market. According to the model, the price should also reach $ 100,000 per coin by the end of the year.
Adoption
McGlone’s third consideration – increasing adoption – works in conjunction with declining supply. Basic economic principles state that if the supply of an asset falls while the demand remains the same or rises, the price should theoretically also rise.
And the demand for primary cryptocurrency has really been growing lately. We have giant companies that allocate billions of dollars to it, some of which have pledged not to sell.
Institutional investors continue to pressure large banks to provide them regulated venues where they can gain exposure to BTC. The AUM at the Grayscale BTC Trust has multiplied 10 times since the end of 2019.
So it’s no big surprise that so many different people, from Jordan Belfort, Adam Back, Tom Lee to CEO of Chainalysis, believe that BTC could actually enter the six-digit price range by the end of 2021.
