Could the Bitcoin Market Cap Reach $1 Trillion? Some Analysts Think SoNovember 24, 2020
No doubt bitcoin has had a rather solid year thus far, but it looks like things may be on the verge of exploding even further. The currency has doubled its price in the last six months and has recently surpassed its market capitalization from 2017.
Bitcoin Is Surging Like Never Before
Many analysts believe the asset could be on the verge of reaching a $1 trillion value. One of these figures is Bloomberg Intelligence senior commodity strategist Mike McGlone, who in an interview said:
$20,000 bitcoin is [the] primary hurdle towards [a] $1 trillion market cap. The digital version of gold but with more limited supply and a history of adding zeros appears to be in an early price-discovery stage and may simply continue its ascent in 2021. Mainstream adoption is rising.
Should the market valuation for BTC ever reach $1 trillion in the coming months, that would mean that one unit of bitcoin is likely to hit a price of approximately $50,000. Many are confident that the currency is also going to strike its all-time high again by the end of this month. That figure of $20,000 was first attained in the year 2017.
But some feel that if bitcoin were to do so, things would become much stronger for the asset, and it wouldn’t simply be a case of bitcoin’s price jumping. Peter Smith – chief executive of bitcoin exchange Blockchain.com – explained:
With all the buzz surrounding bitcoin reaching $18,000, I think the more interesting development is the market cap of bitcoin being at an all-time high. Specifically, that’s exciting because not only are more and more people trusting their assets to crypto, but more capital is invested in bitcoin than ever. In these uncertain times, it’s hugely validating for the reserve asset of crypto.
But while most of the sentiment surrounding BTC is positive right now, the space still features its fair share of doubters. Not everyone, apparently, believes that bitcoin is going to reach such a high market cap. One such figure is John Kramer, a trader at the Hong Kong-based market maker GSR. He states:
It feels more and more like we’re hitting a bitcoin tipping point. That’s not to say that the price will rocket past $19,000. In fact, a cool down is to be expected. While bitcoin has been quick to get back on peoples’ radars, this jump shows few marks of irrational exuberance.
How Big Will Things Get?
Alex Mashinsky – chief executive of the Celsius Network – believes this bull run is different from the one that occurred in 2017. While the one from three years ago was pushed largely by retailers, this time, institutional players are the ones behind the BTC surge, which is likely to ensure the price remains strong. He says:
Bitcoin has gotten to a place where institutional investors, banks and family offices are legitimately pondering involvement.
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