The $100k price target has become a very important milestone that everyone has been talking about for over a year now. Even analysts were giving predictions around the idea of when BTC will be reaching this level. But 2021, to everyone’s disappointment, was not the year when Bitcoin reached $100k. So, the target shifted to 2022. But the start of the year hasn’t been very good, particularly as the price has crashed below $40k, and we are already 21% down from the year open. So, the question of whether the Bitcoin rally is over or not needs to be answered. Let’s see.
Is the Bitcoin rally over?
Even though it is difficult to say with 100% certainty, it is still very likely that the Bitcoin rally ain’t over. Many analysts are still predicting that it will reach $100k this year, but then there are some who think $20k and $10k is coming. Now, let’s consider both scenarios. Let’s say that Bitcoin touches $100k; then, we will be hitting almost $2 trillion in market cap considering new coins are being mined and added to circulation every day. And in case it drops to $10,000, the market cap will fall to $190 billion. Seeing BTC’s price history, it is more likely that the former happens because the market cap in the latter case seems too small.
Then we have the inflation factor, which will be a significant reason behind the upward or downward movement of BTC. The feds haven’t raised the interest rates yet to a level that combats inflation, and until they do so, the markets can climb. Cheap money means that investors will be willing to be able to put in another $1 trillion into BTC over the period of the next 6months or a year. But again, the idea of Bitcoin reaching $100k isn’t a matter of if but when.
The problem
Putting some money in Bitcoin is understandable during regulatory uncertainties. Still, not many would take the risk of putting in a significant portion of their portfolio in BTC during this period. So, again if the US and other major countries clear out the air around crypto, a rally would not be of the cards. Until then, markets will be dodgy and extremely volatile, but that doesn’t mean we are in a bear market.
Do you think that the Bitcoin rally is over? And whether yes or no, what is the reason behind that? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: US mining industry is still the largest despite regulatory uncertainties.
