• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Price & Market
Cap Data from
Nomics Logo Nomics Logo
Bitcoinist.com
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
Bitcoinist.com
No Result
View All Result
Nexo

Here’s the Simple Reason Bitcoin May Not Set Six-Figure Highs Anytime Soon

Cole Petersen by Cole Petersen
12 months ago
in Bitcoin
0
  • There have been a plethora of lofty predictions circulating throughout the crypto industry regarding just how high Bitcoin could rally in the years ahead
  • Although many investors are calling for a six-figure BTC in the near-term, one analyst is noting that the daily volume required to push the crypto into this region would be too significant
  • The lack of organic money flowing into the market is another major factor that could stop these predictions from coming to fruition anytime soon

Ever since Bitcoin’s capitulatory decline from its 2017 highs of nearly $20,000, investors have been setting their sights on sky-high targets expected to be reached during the crypto’s next major uptrend.

Some popular models frequently cited by investors suggest that BTC will reach $100,000 in the months ahead, with it seeing even further upside after that.

There is a simple reason why these predictions aren’t – for the time being – reasonable, as the daily trading volume required to sustain a push up to these highs is significant, and the lack of fresh capital flowing into the market makes it presently impossible.

Bitcoin Unlikely to Break into Six-Figure Price Region Anytime Soon

Throughout the past couple of years, multiple models that predict Bitcoin will be trading well-within the six-figure price region in the near-term have surfaced, drawing significant attention from embattled investors.

One prominent example of this would be Bitcoin’s Stock-to-Flow (S2F) model, an extremely popular economic model that suggests the benchmark cryptocurrency will be trading at roughly $100,000 by the end of 2020.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
Bitcoin
Bitcoin’s S2F model via PlanB

There are other models that offer similarly bullish near-term price predictions for BTC, but one respected analyst is now questioning how reasonable it is to assume that the crypto will be trading within the six-figure price region in the coming couple of years.

“My issue with BTC at $288,000 in 2021 is not the price – I believe it’s true value is higher – it’s the daily volume required up there. $1/4bil to cover the output alone. Today it’s $14.4mil. In the middle of the largest liquidity crises the world has ever seen,” he noted.

Lack of Fiat Inflows a Grave Sign for BTC’s Mid-Term Growth

In addition to lacking the daily volume required to climb to the price levels forecasted by some analysts and investors, the crypto market has also failed to garner any significant fiat inflows from new investors.

This is an integral part of bull runs, and it is impossible for Bitcoin to see any type of parabolic rally to fresh all-time highs without a massive amount of organic money flowing into the market.

Another analyst questioned how realistic it is to assume that the crypto market will see any fresh fiat injections anytime soon while global unemployment rates skyrocket.

“Every BTC bull market has been built on organic money flowing in from the masses. Bitcoin, to get to the highs being talked about, needs millions of people around the world buying some to propel it. Where is that coming from right now when everyone is locked inside w/out jobs?”

Featured image from Unplash.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2021 Bitcoinist.com. All Rights Reserved.
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.