Bitcoin’s price is one of the most debated things in the entire ecosystem. Predictions are made, some accurate, some far off, and reasons are given that again either make a lot of sense or are pure speculation. But, as a rule, most people like to debate how far Bitcoin’s price will climb in the long run.
The coin managed, in 2017, to rise from $1,000 to $20,000 and hit its all-time high as that year drew to a close, but from there the famed volatility has seen Bitcoin drop into the lower reaches of $3,000. Still, the overwhelming feeling is that a new bull cycle will soon hit and a new all-time high will be found.
The figure of that all-time high, according to analysts and commentators, can range from around $50,000 to 1 million in the medium to long term. These figures are again mostly speculative, but according to one analyst, the new all-time high probably won’t be as high as many hope or expect.
Lower than anticipated
Part of the reason so many people feel that the next high for Bitcoin will be so big is that it managed to 20x its value in a small media spark that interested a little portion of the mainstream who adopted it over 2017. Now, Bitcoin, blockchain and other cryptocurrencies are being adopted and tested at levels that include governments and some of the largest companies in the world.
Yet, the top reach of the price of Bitcoin may only reach $75,000 to $85,000 according to an analyst who is basing his theory on the rate of return.
Josh Rager has observed that the bottom to top returns are reducing with each market cycle which suggests the next high will not be in six figures as others have predicted.
“Lots of analysis out there point from $100k to $300k to $1M. Simple rate of return will show you bottom to peak return reduces by around 20% each cycle,” he tweeted
That being said, it would still represent an increase of 800 percent which is not a bad return, but then again, there is no real indication of when this new high will be reached.
What will drive Bitcoin up?
The notion that Bitcoin will go up is almost intrinsically linked at the moment. With its anti-inflationary nature, the coin is meant to get scarcer and harder to obtain which drives demand and thus increases the price. This is very evident in the upcoming Bitcoin mining reward halving set for May.
More so, as adoption in the mainstream continues, and institutional and retail interest piqued, there is every chance that Bitcoin will become more legitimized and normalised and as such will become a popular tool, also driving its demand way up.