This year has been filled with surprising events at every corner, but the crypto industry is about to have a few of its own. Reaching an all time high of $98,000, bitcoin’s surge has taken both investors and the whole world by storm. As it is, a christmas miracle of $100k seems more than possible, right?
What could possibly go wrong?
Despite being stuck at $60,000 for a couple of weeks, it’s quite impressive seeing bitcoin rise to such heights. If this wasn’t real life, it would’ve made for a good movie. But then this is real life, and few things go the way we want them to.
Subsequently, bitcoin’s price surge means a lot for the crypto industry. We’re talking higher returns on investments, more trading power, and positive sentiments that could roll over to other top coins in the market. The benefits are endless.
But what if it ended here?
Expectation versus reality
According to Forbes, Bitcoin’s price over the years is due to the perception of how a particular piece of news boosts or hurts the potential number of Bitcoin users and their transaction volume in the long run.
In this context, two factors drive Bitcoin’s demand:
- the number of active users
- how much they transact.
On the supply side, the number of available Bitcoins is capped, and almost 94% of the capped number is already mined. With limited supply-side upside, the possibility of another surge may be diminished.
Crypto Analysts remain optimistic over Bitcoin’s Surge
Regardless of the limited number of bitcoins unmined and the possibility of a path-altering event for bitcoin, experts remain optimistic about bitcoin’s price.
In a recent report, Bernstein analysts led by Gautam Chhugani noted that the market is entering a phase that may challenge Bitcoin skeptics.
The firm initially set its $200,000 target in June, when Bitcoin’s price was at about $66,000. They believe that institutional demand, coupled with potential regulatory changes, will support this growth.
Another significant factor is the potential establishment of a national Bitcoin reserve, a pledge made by Trump during his campaign. Senator Cynthia Lummis has introduced a draft bill aimed at acquiring up to 5% of Bitcoin’s total supply over the next five years, which could amount to nearly $100 billion at current prices.
Although it’s safe to be cautious around bitcoin’s surge and its price volatility, you can’t help but join 79% of traders who believe in bitcoin’s success.
And who knows, we may witness the $100k Christmas miracle after all.
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