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

At first glance, with the gloomy news about the crypto market, we can fall for the media pessimism surrounding its ecosystem. More specifically, bitcoin (BTC) finds itself questioned by some skeptics who have already celebrated its demise. However, on closer inspection, all is not looking so bleak for the crypto queen, who has yet to say her final word.

The current analysis was prepared in collaboration with the crypto exchange platform Bitget. Present in more than 100 countries, Bitget is a cryptocurrency exchange established 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 reach $100,000 before 2025? »

Once upon a time: the bear market

The bear market is the subject of all the worries in the crypto universe. Also, a climate of uncertainty hangs over bitcoin. Like an airplane losing speed, his price has been a rollercoaster ride in recent months.

bitcoin, btc, crypto, price
Source: the kraken

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

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

Even if the bear market appears to be playing with extensions dragging in its wake a decline in the price of bitcoin, it is even clearer, given the empirical data, that the currency developed by Satoshi Nakamoto still has power in her engine.

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

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

Bitcoin (BTC) price at $100,000 soon

If we rely on Bitcoin’s 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 for selling or buying strategy. To this end, colors at the upper border of the rainbow indicate a bullish market, favorable for selling. Colors on the lower border indicate a bear market, so good for buying.

bitcoin, btc, crypto, price
Source: The Blockchain Center

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

As a memory, a halving consists of dividing the reward given 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 thousand dollars.

The adoption of bitcoin (BTC) as a lever to increase its price

Compared to the Internet in its early days, the fall in the price of bitcoin is nothing out of the ordinary. Rather, the parallelism 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 topic and highlights the same curve shared by Bitcoin users and Internet users.

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

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

bitcoin, btc, crypto, price
Source: Wells Fargo

Moreover, despite a price that has fallen drastically within a year in a context of bear market, the daily number of bitcoin transactions did not suffer a sharp decline. It simply means that neither the bear market nor the price drop has dampened the appetite of crypto-enthusiasts, who are increasingly 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 bitcoin held. chain analysis estimates the number of illiquid bitcoins at 15.7 million. Therefore, these are cryptos that are the property of their owners, who do not make them available on the market, or only for a long time.

That 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 a legal means of permittingfinancial inclusion, promoting its use in local stores. Moreover, e-commerce platforms are increasingly favorable for the use of cryptos. This is the case of Ebay which now accepts payments in bitcoin.

Given the growing adoption of crypto around the world, this percentage of available bitcoins may turn out to be somewhat lacking. The consequence is a bitcoin price that will rise due to its scarcity.

To finish,

Considering the above, it seems very likely that the price of bitcoin (BTC) will once again experience an upward trend. However, the question on everyone’s lips is ” When will there be another bitcoin (BTC) price increase? “. The FTX debacle created a contagion effect in the crypto market. Thus, she disappoints some hopes of meeting someone new bull market. Therefore, the entire ecosystem is on red alert. However, this is not its first bear market. This is the music that all crypto enthusiasts know. Some had predicted the death of bitcoin (BTC). However, its sustainability and mass adoption around the world defy predictions.

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Cointribune Editorial Board

Cointribune’s editorial team joins its voices to speak on topics specific to cryptocurrencies, investments, metaverses and NFTs, while striving to best answer your questions.

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