Bitcoin (BTC) at $100,000, still relevant?

At first glance, with the gloomy news on the crypto market, we could fall into the media pessimism surrounding its ecosystem. More specifically, bitcoin (BTC) finds itself in the crosshairs of some skeptics who have already celebrated its death. However, on closer inspection, all does not look so bleak for the crypto queen who has yet to say her last word.

The current analysis was prepared in collaboration with the Bitget crypto exchange platform. Present in more than 100 countries, Bitget is a cryptocurrency exchange created in 2018. With a user base of more than 8 million, the digital asset platform offers a variety of services to its customers. These include derivatives trading, spot trading, social trading and copy trading. Thanks to its innovative products, Bitget appeals to both amateurs and professionals.

“Do you think #Bitcoin will hit $100,000 before 2025? »

Once upon a time: the bear market

The bear market is the subject of all concerns in the crypto universe. Also, a climate of uncertainty hangs over bitcoin. Like a plane losing speed, its price has been a succession of roller coasters for the past few months.

bitcoin, btc, crypto, price
Source : kraken

This downward trend may not seem encouraging, especially given the current context. Indeed, the crypto market is hungover with the many shipwrecks of players who were considered safe bets. On the blacklist are Terra-Luna, Celsius, 3AC, Voyager, FTX, or even BlockFi. Result of the races, the bitcoin toasts and the price is still in the red this week:

bitcoin, btc, crypto, price
Source : Glassnode

However, it must be recognized that the bear market has the advantage of pruning the market by putting less reliable players on the sidelines. This purge suggests at least one thing, the flaws of the weakest are exposed.

Even if the bear market seems to be playing extra time, dragging in its wake a falling bitcoin price, it is all the more obvious, in view of the empirical data, that the currency developed by Satoshi Nakamoto still has energy in its engine.

Bitcoin (BTC), this phoenix rising from its ashes?

The main issue today is to determine to what extent bitcoin can take off again. Fortunately, this is a task that is possible.

Soon a price of bitcoin (BTC) at 100,000 dollars

If we rely on the Bitcoin Rainbow Chart, which is a favorite indicator for crypto enthusiasts, the price is likely to rise again in the near future. The Bitcoin Rainbow Chart is a logarithmic regression chart that visualizes the evolution of the bitcoin price.

This tool highlights market movements, and gives indications as to the strategy of sale or purchase. To this end, the colors on the upper limit of the rainbow indicate a bullish market, conducive to selling. The colors on the lower bound indicate a bearish market, so good for buying.

bitcoin, btc, crypto, price
Source : Blockchain Center

In concrete terms, what we retain from this Web3 crystal ball are empirically the halvings that allow the price of bitcoin to rise again.

As a reminder, a halving consists of dividing the reward granted to bitcoin miners every four years. Also, the next one, which will take place in 2024, should make it possible to boost the course of the queen of cryptos, with a ceiling of 100,000 dollars.

The adoption of bitcoin (BTC) as a lever for its price growth

Compared to the internet in its early days, bitcoin’s price decline is nothing out of the ordinary. On the contrary, the parallel between these two technological innovations, each as disruptive as the other, cannot be ignored. Bitcoin follows the same trend that the Internet experienced in the 90s.

The editorial In Bitcoin We Trust provides more detail on this subject and highlights the same curve shared by Bitcoin users and Internet users.

bitcoin, btc, crypto, price
Source : In Bitcoin We Trust

Moreover, Wells Fargo clearly illustrates this parallel in its February 2022 report on cryptos. The American bank especially highlights the rapid similarity in the adoption of these two innovations. In other words, just like the internet, crypto adoption will happen at such an accelerated rate that there will be a point of no return.

bitcoin, btc, crypto, price
Source : Wells Fargo

In addition, despite a price that has fallen drastically in a year in a bear market context, the daily number of bitcoin transactions has not experienced a sharp drop. This simply means that neither the bear market nor the drop in price has dampened the ardor of crypto-enthusiasts, who are more and more numerous.

bitcoin, btc, crypto, price
Source : Nasdaq DataLink

Illiquidity as a factor driving up the price of BTC

Let’s take a look at the liquidity of bitcoins held. chainanalysis estimates the number of illiquid bitcoins at 15.7 million. These are therefore cryptos that are the preserve of their owners, who do not make them available to the market, or only for the long term.

This leaves about 18% of bitcoins in circulation, or 3.45 million BTC. It must be said that the queen of cryptos is increasingly accepted as a currency of exchange for goods and services around the world.

For example, El Salvador and the Central African Republic have adopted it as legal tender to enable financial inclusion, promoting its use in local businesses. In addition, e-commerce platforms are increasingly favorable to the use of cryptos. This is the case of Ebay which now accepts payments in bitcoin.

Given the increasing adoption of cryptos around the world, this proportion of available bitcoins may prove to be somewhat lacking. The consequence is a bitcoin price that will go up due to its scarcity.

To conclude,

Considering the above, it seems highly likely that the price of bitcoin (BTC) will experience a bullish trend again. However, the question on everyone’s lips is ” When will bitcoin (BTC) see another surge in price? “. The FTX debacle created a contagion effect on the crypto market. Thus, it dissuades for some the hopes of knowing a new bull market. The entire ecosystem is therefore on red alert. However, this is not its first bear market. This is music that all crypto enthusiasts know. Some had predicted the death of bitcoin (BTC). Nevertheless, its resilience and massive adoption around the world defy predictions.

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