Bitcoin is About to Reach $100,000 (But Could It Drop to $0?)
Let’s talk about how Bitcoin could reach $100,000 THIS YEAR… a lot of people feel very confident about it and I’m NOT ENTIRELY skeptical, yet.
Fidelity Investments Director of Global Macro Jurrien Timmer said: “Based on those metrics, by 2023, my models show $100,000. But maybe it gets there in a very non-linear way, because if we know one thing, it’s that Bitcoin doesn’t move in a straight line. So who knows? Maybe it goes to 200 first and then to 100, and maybe that’s the base for the next bear market. So who knows? But that, to me, seems like the path of least resistance. And the fact that we’re getting there without this momentum effect, I think, is a very healthy sign.”
On top of this, the SEC just approved Bitcoin ETF — or Exchange-Traded Funds — which means that a wider investor base can get their hands on Bitcoin. This will be the FIRST U.S. Bitcoin ETF. It’s being referred to as a “FUTURES” contract, which means you’re buying a contract that will buy Bitcoin in the future — for a certain price.
This is huge, as it gives Bitcoin a fighting chance to reach $100,000 by the end of 2021, as many crypto fans are suggesting (or 2023 if we’re going with Timmer’s calculations). There’s a very good possibility, actually, that it would surpass this number.
However, if anything were to happen and the ETF doesn’t end up happening, a lot of hopeful potential new Bitcoin investors will be disappointed and disappointed investors affect the stock market.
According to James Seyffart, an analyst at Bloomberg Intelligence: “It seems the SEC really did not like that language for whatever reason. But they are following standard guidelines and allowing first to file to launch first. So we will be tracking closely how much of a first mover advantage there is here.”
Still, ETFStore President Nate Geraci believes this is “a step forward,” saying: “It’s an encouraging sign for the future of crypto to see SEC Chairman Gensler get comfortable in helping mainstream investors more easily access bitcoin exposure. The availability of a bitcoin ETF will now bring more investors under the crypto tent and facilitate greater education across the space.”