Bitcoin for $ 100,000. Will we see this year again?

The price of the most famous digital currency, bitcoin, rose above $ 57,000 on Monday and it seems that it could continue to grow. According to Bloomberg, speculators are betting on at least this scenario. Some are even predicting growth to $ 100,000 by the end of this year.

Around mid-September, the price of bitcoin fell below the psychological threshold of $ 50,000, at a time when Salvador, as the first country, began to accept bitcoin as official currency. The price subsequently dropped to $ 40,000, and the fall was also contributed to by the Chinese central bank, which declared all cryptocurrency transactions illegal.

The Central Bank of China has criticized the negative effects of cryptocurrencies on the financial system and their use in money laundering and other crime. At the same time, Beijing announced a few months ago that it would also take action against their mining as part of the fight against cryptocurrencies.

When I taught cryptocurrencies at the University of Jinan in China in 2017, local students were already convinced at the time that bitcoin was illegal in the country.

Jakub Jedlinský, Altlift

“In China, it is already becoming such an evergreen. When I taught cryptocurrencies at the University of Jinan in China in 2017, local students were already convinced at that time that bitcoin was illegal in the country, “said Jakub Jedlinský from Altlift. According to him, the regulation of the Chinese central bank would not have to have a long-term negative impact on the price of bitcoin.

However, even from another decline, at least this time, the price of this popular cryptocurrency managed to shake off and from the beginning of this month launched an attack on higher values. It is currently losing about 11 percent to its historical highs.

“September is statistically a worse period for bitcoin and other altcoins when there is a correction. The bad sentiment was supported by the unfavorable development of the global economy, which was significantly influenced by events in China, “said Jedlinský, who also lectures on cryptocurrencies at the University of Economics in Prague.

What is behind the current growth?

According to Reuters, there has been a large influx of cash for several consecutive weeks into funds and investment products offered by cryptocurrency trading. The renewed growth of bitcoin is also due to the greater confidence of investors, who benefit from some support from some regulators. Investors may have gained some optimism even after it became clear that some bitcoins were also owned by well-known investor George Soros.

Another factor that may contribute to the current growth of bitcoin is investors’ expectations that the first exchange-traded fund (ETF) tied to bitcoin could be approved in the United States. If we were to experience this scenario, bitcoin could benefit from this situation in the future.

$ 100,000 by the end of the year?

The price of bitcoin has risen by almost 100% since the beginning of this year, and according to some speculators, its price could look to the magic limit of $ 100,000 by the end of this year. Probably the biggest question will be whether investors will again be intimidated by the intervention of some regulatory authority or other institutions whose interventions and comments may have a negative effect on the price of bitcoin, at least in the short term. It seems that bitcoin has always managed to shake off similar situations and, after a break, continue its long-term growing trend.

According to Jakub Jedlinský of Altlift, it is possible that bitcoin will increase to $ 100,000 by the end of this year, but it will depend on several factors, such as whether the US Fed tightens monetary policy or the macroeconomic situation in the world. “There are still reasons for optimism, but it is necessary not to be influenced by global fear, and on the contrary to look at the situation from above,” Jedlinský concluded.

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