Bitcoin could hit US$400k if past gains are replicated, analysts say
If runaway cryptocurrency Bitcoin were to mirror its outrageous climbs in past years it could reach as high as US$400,000, analysts have modelled.
A new report by Bloomberg Intelligence theorises if Bitcoin could replicate its highs in 2013 (roughly 55x gain) and 2015 (roughly 15x gain), it would peak at several hundred thousand dollars.
Of course, like any investment, past performance is not an indicator of future gain but analysts believe Bitcoin’s trajectory is “strongly upward”.
“The technical outlook for Bitcoin in 2021 remains strongly upward, if past patterns repeat. Common companions for strong annual rallies in the first-born crypto – low volatility and halvings – are aligned favourably,” the authors of the Bloomberg Crypto Outlook 2021 write.
“To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since the 2011 high.”
Currently, Bitcoin is trading at just shy of US$60,000 (A$79,000) per coin, having already made stratospheric gains in the past 12 months.
If you were to have bought $1000 worth of Bitcoin 12 months ago, that same investment would be valued at just over $8000 today, adjusted for inflation.
Despite this growth the analysts believe the cryptocurrency still has room to mature.
“Bitcoin adoption has become more sudden than gradual and is likely to accelerate, as we see it, underpinning its price for the foreseeable future and magnifying the dollar’s dominance as the reserve currency,” analysts write.
“Even with speculative excess in the broader crypto market, we believe Bitcoin is less prone to a sustained trip up.
“The imminent launch of Bitcoin-oriented US exchange-traded funds is another bullish underpinning.”
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