Bitcoin (BTC) was the first cryptocurrency to meet all of the “landmark” value marks, debuting at $0 in 2009 and matching the US dollar for the first time in 2011. Since then, it has exploded to $64,387.50 (£46,652.29), and investors are anxious to catch it during its next rally. As it ambles towards $70,000 (£50,718.85) after having started the year on $12,000 (£8,694.66) – with a total value gain of more than $50,000 (£36,227.75) – the next benchmark would be $100,000 (£72,455.50). But investors aren’t so sure it will be able to repeat its success and gain a further $50,000 within another year.
Experts have touched on the volatility BTC demonstrated this year in their analysis.
Nigel Frith, lead analyst at Bitcoinmoney.net, said it is “plausible” Bitcoin could eventually exceed the value.
He said Bitcoin’s “repetitive” cycle would eventually nudge it past the $100,000 mark within the next two years.
Mr Frith said: “Ultimately, it is plausible that Bitcoin will exceed $100,000 per unit in value in the future.”
“In April 2021, Bitcoin reached its most recent high of $65,000.
“However, the digital coin plummeted to nearly half the price leaving buyers at risk.
“Bitcoin’s price changes tend to have a cycle.
“The way this repetitive cycle works is that the price will reach a new high over a short period, and then the value drops.”
“There is no way you can predict when the market value of Bitcoin will remain high or when it will fall.
“However, from this continuous cycle and trend in price changes over the years, analysts believe that Bitcoin could see major gains and reach that high of $100,000 as early as 2023.”
Gavin Smith, CEO of Panxora, expanded on Mr Frith’s explanation, adding that volatility has kept BTC from speeding past the next boundary.
He made a similar prediction, but at the same time, urged people to take care with their money.
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Mr Smith said: “We do expect bitcoin to hit $100,000 in the future – but not this year, as we expect volatility to continue into early 2022.
“However, the longer-term outlook for Bitcoin remains strongly bullish.
“Corporations and family offices are leading this by putting some of their excess cash into Bitcoin as an inflation hedge, and from a fundamentals perspective, it’s becoming clearer by the day that inflation is not going to go away.
“With the successful launch of the ProShares Bitcoin futures ETF, this will now offer an easy route for retail investors to take advantage of this marketplace too.”
“However, Bitcoin is still an emerging asset class subject to very high volatility, and investors should approach it with caution.
“Care should be taken, and any investment should be considered speculative.”
BTC’s incoming movements are at the mercy of a sensitive market that could send its value descending at a moment’s notice.
Investors have had to navigate altcoins edging their way into the limelight and continued efforts from governments to regulate the crypto sphere, meaning that any predictions struggle to gain traction.