The Potential and Myths of Bitcoin Rallying to 300,000 USD the Near FutureNovember 21, 2020
The development of a fully-fledged bitcoin bull run is a period in the crypto community that comes with a range of narratives. In the modern-day and age, where social media overcame traditional news outlets and esports are growing faster than their traditional counterparts, the same development is in many ways natural. What was once the dominion of things like global politics, where all actors could have their own interpretation of events, now has become a playing field for almost anyone with an online device and a desire to take part in a discussion.
Since its inception, bitcoin was an especially fervent playing field in this regard. Now, 10 years later and several huge ups and downs for the network, nothing essential changed here and BTC token and its price continue to fuel all manner of not just discussion, but also predictions. Those who follow the same field for a longer time know that this is simply a part of the game of crypto.
As its biggest member, bitcoin only gets the biggest playtime, but none other cryptocurrency is immune to it either. However, the sheer weight of the bitcoin network in the public mind makes its narratives the loudest and often most ludicrous. As a new bull run unfolds, there is an abundance of all manner of discussions and scenarios. A recent one, coming from a very reputable source, added a big flammable block on the same fire. Thanks to it, many are now assessing the possibility of BTC reaching 300,000 USD before the end of next year.
During the last few weeks, bitcoin was able to explode in value, further adding to the impressive gains it made throughout the year. That also includes a doubling in value which took place in 2020 so far. This week, the price of a BTC token climbed to the level of 19,000 USD, which caused jubilation among the numerous members of the bitcoin community.
For those who have been there for more than a couple of years, the same marked a moment when the cryptocurrency showed the same potential it had in 2017, during the last full bull run. However, the present rise in price is taking place without the hype of the mainstream media which covered that from three years ago. But, the same lack of mainstream attention, or at least its previous scope, does not mean that the mainstream financial industry is not churning out bombshell reports about bitcoin.
Out of all attention-grabbing headlines that came out in recent days, the report from the massive Wall Street firm Citibank takes the cake. A leaked document from their analysts, including some senior figures, is pointing to the possibility of bitcoin reaching the price of 318,000 USD by the end of 2021. The report also called the cryptocurrency 21st-century digital gold. In their collective mindset, the entire existence of bitcoin so far has been defined by incredible rallies that are followed by equally massive downwards corrections. This type of pattern is holding – against all odds – a long-term trend.
The analysts also used the document to open the question of whether or not the same thing is taking place right now. The report employed the previous three bull runs that took place in the cryptocurrency ecosystem over the last 10 years. The same period is practically the entire life of the bitcoin network since its start. Citibank believes there is a possibility that the present rally ends in December of 2021. That process would in turn take the price some 15 times higher than its earlier record from 2017.
Expectedly, the report does not stipulate that the same will take place, but that there is a possibility of something like this occurring. Even if the insane price of 300,000 USD is not attained, the report still underlines that the potential for a major move up from bitcoin is most definitely there in the next year or 24 months from now. Interestingly, the report took on the assessment of the wider case for bitcoin use. It claims that the arguments that support the adoption and use of bitcoin are now at their most persuasive level. The dialogues around bitcoin are also supporting the notion of bitcoin having a gold-like reputation.
In a completely different financial quarter, central banks, like that of China, are working diligently and publicly on their digital tokens. The same process of digitization of currencies, even though it technically does not have anything to do with cryptocurrencies like bitcoin, is also feeding into the feedback loop favoring BTC adoption. As always, altcoins are gaining value from this as well, including the second-biggest cryptocurrency network in the world, ethereum. It recently saw its ETH token reach a price of 540 USD, which takes place for the first time since June 2018.
Tailwind from Traditional Markets
Besides the Citibank report, many analysts believe that the cryptocurrency domain will benefit from singing changes in global monetary policies. These include the previous and future fiscal stimulus programs, as well as the devaluation of traditional currencies. Back in 2015, one of the elements of the future bull run in the bitcoin network was the devaluation of yuan in China. To avoid losing all of their funds, many in the country used bitcoin as a form of hedge against these state-mandated drops in yuan value.
Now, a similar process might be unfolding across the world and crypto can only gain in both its value and overall popularity. Of course, no one is forgetting the fact that in this bull run, bitcoin has some serious institutional backers. These have brought in hundreds of millions of USD into the network’s market cap. This is something that is brand new to the traditional market analysts, but also something that is otherwise very familiar. Because of that, concepts like seeing bitcoin reach over 300,000 USD might not be as much as an exaggeration, but more a reflection of a drastically changing paradigm of the cryptocurrency playing field.