Bitcoin has once again reached a new all-time high and with demand increasing in a bullish market on the cusp of what looks like could be a strong alt coin season, predictions are showing that the cryptocurrency that has been compared to gold, could see further increases in the coming year and beyond.
While many predict that the reality of a $300,000 bitcoin could be a long stretch, looking back this time last year and you would have been thinking that a $30,000 bitcoin was out of the question, however today the token broke through that price point and seems to be holding off the resistance.
Growing popularity and interest in the ‘digital gold’ crypto could well see the price continue to climb as the question now becomes, when is the resistance going to kick in and where will it fall to in order to stabilise itself a little more.
Increased whale investors bullish on securing and holding BTC
We have already seen that large private and institutional investors have started to take note of bitcoin as a potential holding within their portfolio and as larger companies look to offset some of their more physical assets into bitcoin following a struggling fiat currency market, it has been reported that more investors are holding for the long term rather than considering shorting their position on the current price increases.
Glassnode, a data analyst firm took a look at data from the chain to establish that there could be an estimated 1 million bitcoin that have been purchased and put into illiquid state, further reducing the liquid tokens available for investors to purchase.
A reduction in availability at a time when we are unsure whether the biggest investors are completely done with their purchasing means that prices look set to rally again as they free up funding from other assets to offset in inflation protected bitcoin, so if they haven’t finished yet, expect to see another large chunk of the 4.2 million liquid bitcoins available being placed into long term ‘hodling’.
JP Morgan Investment see a potential 10x still to come for BTC
U.S. based investment firm JP Morgan have stated publicly that they believe that demand and potential for bitcoin is huge, saying that they believe that the current price could see significant growth and that could happen as quickly as 2022, with a potential 10x ready to happen.
Time will tell if this will be the case, however with some investors looking to leverage themselves against bitcoin held, maybe the prospect of a $300,000 coin could be possible, but for that to happen we are going to need to see a strong bull market and a sustained uplift that can weigh against the resistance.