Bitcoin price model assumes that by the end of 2021 the coin will reach 200K $
The price of Bitcoin in the last 24 hours reached a record high, exceeding 19,832$. However, when trying to reach 20 K again, the cryptocurrency was rejected and fell below $19,000, and is currently trading at $19,380.
BTC Volatility Tests Traders` Patience
The world’s largest cryptocurrency fell about $1,500, 7 percent below its historic high, in less than two hours. However, buyer pressure increased, so the cryptocurrency witnessed a rapid recovery.
According to Santiment, a crypto-analytics company, many traders themselves fulfilled the prediction of a new record high level of the BTC price, as mentions of “ATH” peaked shortly before its actual historical high.
Renowned economist and bitcoin sceptic Peter Schiff recently took the liberty to comment on the latest trend in Bitcoin prices. He made several comments after BTC`s erratic moves in the market, which resulted in an estimated $300 million liquidation in less than an hour. Schiff said:
“Bitcoin pumps assured the hodlers that once it reaches a new high, investors will quit buying a crypto asset. It was part of the pomp keeping the little guys on board while the big ones all threw. Bitcoin reached a new high, but instead of breaking into a bank of new money, the old ones were cashed”.
However, Santiment’s data suggests otherwise. The analytics firm noted that the number of addresses containing a significant number of Bitcoins continues to grow. Over the past two weeks, the number of addresses with 1000 or more Bitcoin, has increased by 44,000. However, those with 0.1 to 10 BTC decreased by 40,000 addresses.
This means that the number of investors who have fewer Bitcoins has actually decreased, while bitcoin whales continue to accumulate wealth.
Schiff’s claims remained unfounded. “What Bitcoin Did” podcast host Peter McCormack commented on Schiff’s tweet:
“Why don’t you get a couple of Bitks, and make a bet with me? I bet that 10 thousand dollars in Bitcoin will exceed 30 thousand dollars per year.”
McCormack is not the only person who believes Bitcoin could see further growth in the near future as an onchain analyst recently developed an economic model that evaluates BTC price at $200,000 at the end of 2021.
200 thousand $ – the cost of BTC justified by the analyst
A network analyst who previously predicted the disconnection of the cryptocurrency and stock market, Willie Wu recently introduced a new model, according to which BTC will reach $200,000 by the end of next year.
According to Wu, most investors who invested in a digital asset paid $7,456 for one Bitcoin. He explained that the current phase of re-accumulation coincides with the depletion of inventories in the spot market, and is about twice as long and deeper as the last cycle, which could cause Bitcoin’s price to rise. Wu concluded:
“In addition, the growth of market capitalization in terms of the invested dollar has increased significantly in recent cycles, HodLers are holding stronger. In 2013 it was $2.00, in 2017 – $2.50, and in 2021 – $3.50 or more. Everything points to increased reflexivity and increased bullish feedback from 2021.