Bitcoin has shown extreme volatility this year. From hitting a low of under $30,000 (₹ 22.51 lakhs) in May-June to reaching a high of $64,000 (₹ 48 lakhs) in April, the world’s largest cryptocurrency has been on a wild swing. A month ago it was trading around $50,000 (₹ 37.51 lakhs), then it hit a low of $40,000 (₹ 30 lakhs) and then again peaked to its current level of around $62,000 (₹. 46.52 lakhs). During all these swings, Bitcoin managed to recover every time it lost its values, raising hopes of investors in its long-term future. The recent rally has fuelled hope that Bitcoin is poised for an unprecedented rally soon.
The biggest question on every investor’s mind is whether Bitcoin will hit the $100,000 (₹. 75 lakhs) mark this year? While the idea is valid, how much water does it hold? Is it really a possibility? To understand whether this can be achieved, let’s see what works in Bitcoin’s favour.
The idea has been fuelled by Bloomberg’s Crypto Outlook report. The report said that Bitcoin was more likely to approach $100,000 this year than falling back to $20,000 (₹ 15 lakhs). In tandem with this prediction, Bitcoin has gained nearly 25 percent over the past month.
The crashes and rallies this year also led to a renewed focus on Bitcoin, making it a household name. The fence-sitters began noticing the rise in popularity of a new type of currency that was available only virtually and was giving huge returns to some. Add to that the endorsement by billionaire tech entrepreneurs like Tesla and SpaceX CEO Elon Musk and Twitter’s Jack Dorsey.
Also, the investors are hoping to see a rally that Bitcoin showed during this time last year. On October 16, 2020, Bitcoin was trading a little over $11,000 (₹ 8.25 lakhs). In the remaining part of the year, it almost tripled its value. On January 1 this year, Bitcoin traded around $30,000 (₹ 22.51 lakhs) and continued its upward trajectory till May, when a market crash due to Chinese crackdown on miners washed out most of its gains.