Could Bitcoin Hit $100k This Year?
Bitcoin (BTC) experienced a massive expansion at the beginning of the year, but for several months, the virtual currency has been trading sideways. One of the targets for this digital asset was to reach $100,000. Now that we already are in the second half of the year, the question is whether this is a realistic target for 2021 or if we would have to wait until 2022 for it to happen.
Could Bitcoin Reach $100,000?
Investors are waiting for Bitcoin to resume its bull trend. During the last few weeks, retail traders have been buying Bitcoin and waiting for the digital asset to continue moving higher. However, it can take some time before the virtual currency hits $100,000.
There are different models that show Bitcoin could grow to the above-mentioned price, but there bumps along the way that cannot be predicted. The recent price drop from $57,000 to $30,000 has been one of these unexpected events driven by FUD.
There are many different price drivers for Bitcoin and other virtual currencies. One of them is related to money printing. During 2020 and 2021, governments printed large amounts of money in order to fight against the COVID-19 crisis. Many of these newly printed banknotes have been moved to virtual currencies, pushing the price of Bitcoin above $63,000. But would that happen again in the future?
It is also worth noting that there are only 21 million BTC in existence. It is not possible to create more than that. The daily issuance of BTC is currently at 900 BTC per day. If there is strong buying pressure from the community and from larger companies, it might be possible for Bitcoin to continue moving higher.
During the first part of the year, companies have been buying Bitcoin and adding them to their balance sheets. Now, these purchases have slowed down, which can be seen in the price action of Bitcoin in recent months. Moreover, these purchases are very important considering the impact they have on Bitcoin and even other digital assets.
But will Bitcoin reach $100,000 in the coming years? It might be possible for that to happen. Although there is nothing written about BTC and what could happen with its price, this price level remains the main target for Bitcoin supporters and investors. If inflation keeps high and if companies continue investing in BTC, $100,000 might not be an impossible target.
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