Source: Adobe / Fox_Dsign
It took 17 days for the most popular cryptocurrency, Bitcoin (BTC) to jump from $ 20,000 to $ 30,000, and less than a week to hit $ 40,000.
At the time of writing (18:16 UTC), it hit this level on multiple exchanges including Binance, Bitstamp, and HitBTC.
After reaching this milestone, BTC’s market cap is now over $ 740 billion. That network is now more valuable than popular electric car maker Tesla, which is controlled by the richest person in the world, Elon Musk, who inquired about a major BTC transaction in December.
BTC price chart:
Meanwhile, even ahead of this strong rally, some industry experts predicted that BTC could hit $ 100,000 to $ 500,000 this year.
“Bitcoin breaking USD 40,000 proves that the COVID crisis is strong enough to shift the existing currency order. The new all-time high is tangible evidence of a major social conversion – a metamorphosis from a dollar-dominated economy to blockchain-based, deflationary “and limitless finance,” said Antoni Trenchev, co-founder and CEO of major crypto lender Nexo, all rolled into one comment sent by email.
Meanwhile, Geoff Morphy, President of Bitfarms, a large publicly traded Bitcoin mining company, stressed that “the more people look for alternatives, the more” people perceive that their assets, especially their liquid assets like fiat currencies, depreciate”.
And here’s what analysts said this week as BTC was on its way to $ 40,000:
- “If Bitcoin continues to recover at its current rate, I believe we could see a price of $ 54,000 around Valentine’s Day. We could see a price higher than this by the end of the first quarter; $ 74,000 is on my radar too, I have a feeling that a $ 54,000 pullback would cause Bitcoin price to consolidate by $ 35,000, ”said Nicholas Pelecanos, Head of Trading at NEM.
- “It is very likely that the asset will exceed $ 100,000 per coin at some point,” wrote Sergey Nazarov, co-founder of Chainlink (LINK), in an email to Reuters. “People have been losing confidence in their national currencies for years, and monetary policy stemming from the economic impact of the coronavirus has only accelerated that decline.”
- JPMorgan said the current “speculative mania” will continue to push BTC towards the “consensus region between $ 50,000-100,000” which would not be sustainable.
- Sonny Singh, chief commercial officer of major crypto payment processor BitPay, estimates that BTC will climb to USD 40,000- USD 45,000 “in the next month or so” if the market could feel more selling pressure.
- “Bitcoin has entered a new phase of pricing driven mainly by increased institutional interest in the digital asset. We haven’t seen peak retail exposure yet, as evidenced by the low level of search and social activity compared to 2017,” Craig said Russo, director of innovation at Polyient, an infrastructure that underpins decentralized virtual economies, in an emailed comment.
- “Since we already know that institutions are buying in bulk, the flattening of spot inventory drawdowns is a sign that retail buyers are now moving in in bulk, attracted by recent price hikes,” said popular BTC analyst Willy Woo.
- Konstantin Richter, CEO and Founder of Blockdaemon, said the next big hurdle for Bitcoin is at $ 50,000: “Between $ 30-50,000 there can be significant asset liquidation, so I think this will be a more difficult number to achieve this Once that hurdle is taken, I believe we’ll see $ 100,000 in 2022. “
- “Any crash we see won’t be as drastic as the ones we’ve seen before thanks to the heightened network effects and institutional involvement,” said Rachid Ajaja, CEO and founder of AllianceBlock, adding that it is unlikely BTC whales – those that hold enough BTC to affect the price – are about to sell. He added that the masses of retail money are usually the last to hit the market and are a warning sign of potential downturns.
- While the recent surge in BTC continues to turn the ranks of old financial institutions into crypto enthusiasts, legendary investor Bill Miller predicted that “the current relative trickle in Bitcoin” could become “a stream”.
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Seriously, this looks like we’ll be at $ 47,000 in about three days, lol, mentally
– Nik Patel (@cointradernik)
#Bitcoin has just doubled its previous all-time high in 21 days.
– Document Bitcoin 📄 (@DocumentBitcoin)