Bitcoin rallied to new highs in the past 24 hours, surging past $21,800 setting a new all-time high. Bitcoin’s price has surged 12.9% in the past 24 hours, and is trading at $21,824 at the time of writing. Most large cap altcoins have also followed Bitcoin’s foot steps, with Ethereum (ETH) surging over 10%, XRP rocketing 24%, Litecoin (LTC) rising 15%, Cardano (ADA) surging 10.7%, and Stellar Lumens (XLM) gaining 16.9%.
Crypto analyst Willy Woo noted that we are now at an all-time high juncture where Bitcoin’s Top Cap Model has started curving upwards. Woo’s model suggested that the estimation of Bitcoin reaching $100,000 is a very low target according to the current trajectory. Woo said:
“We are not at the all-time-high juncture where the BTC Top Cap Model starts curving upwards. $100k is a ridiculously low target at the current trajectory. $55k is the next landmark -> Bitcoin becomes a $1T macro asset bucket.”
Behind Bitcoin’s rally
Woo also suggested the reason behind the recent Bitcoin rally was due to the immense amount of FOMO (fear of missing out) buying in the market, which overpowered profit takers and boosted the cryptocurrency’s price. Woo explained:
“Far from resetting which means immense amounts of FOMO buying in the market right now, they over powered profit takers and moved price upwards. That’s not been seen before this early in the cycle.”
“The last 2 days rise in bitcoin would annualize at 1000%. Good night and good luck. Corrections will come at some point, some will be scary. Buy them. BTW – I think 10x is more than realistic.”
Bitcoin in a state of profit
Crypto analytics firm Santiment noted that as Bitcoin has been pushing towards new highs, 34 new addresses holding between 100 and 10,000 BTC were created before the recent rally. Santiment explained:
“#Bitcoin closed Wednesday (UTC) with a push to greater all-time highs. And this historic run hasn’t slowed down a bit. 34 new addresses containing between 100 and 10,000 $BTC were made just prior to this spike, the largest gain in addresses since 11/29.”
During the early hours of Bitcoin’s price rally, the amount of liquidations of short positions on Binance reached $94,293,438, which caused a detriment to many Bitcoin bears. While Bitcoin surged above $20,000 data showed that 100% of BTC addresses were in a state of profit, meaning that everyone holding Bitcoin was making money.
What’s next for Bitcoin?
According to Woo, only 2 percent of the world’s population currently has exposure to Bitcoin. Woo predicted that with the Bitcoin adoption rate in history, 30% of the world population would own Bitcoin in 4 years’ time.
Woo also revealed a model that would suggest that Bitcoin could reach $200,000 by the end of 2021, if not $300,000. According to Woo, most investors who have invested in the digital asset have paid $7,456 for one BTC. Woo explained that the current re-accumulation phase coincides with the spot market inventory depletion, and is roughly two times longer and deeper than the last cycle, which could lead to Bitcoin’s price climbing higher.
« La choisi étonnante à propos de ce record pour Bitcoin n’est pas que cela se passe, c’est que cette course de taureaux est la preuve d’une période soutenue de croissance. C’est ce vers quoi le travail dans l’ensemble de l’industrie s’est construit pour préparer le monde pour la prochaine ère numérique à mesure que les orientations sur la conformité réglementaire deviennent plus claires, que les pays explorent les monnaies numériques nationales, et que les investisseurs institutionnels et de détail couvrent les paris sur les actifs numériques. Lorsque la Fed et d’autres agences gouvernementales à travers le monde semblent ok avec les effets de l’inflation sur les monnaies fiduciaires, nous allons continuer à voir la thèse de diversification dans la poussée BTC, avec des prix brisant les niveaux techniques clés.
According to Raoul Pal, CEO of the Real Vision Group, Bitcoin’s price could hit $1 million by 2025.