Key Insights:
Bitcoin could cross $100k by the end of this week.
This would impact a market-wide rally, taking other cryptos higher with it.
Bitcoin has already outperformed most cryptocurrencies with over 60% CAGR in the last 4 years.
Bitcoin's crossing of $100k marks pivotal success in its journey. The top cryptocurrency is now at $97k, which is about 3.5% away from $100k.
The top crypto has rallied 44% in the last 30 days and 8% in the last 7 days, dominating 60.5% of all crypto market cap.
Whales, corporations, and retail users have been buying Bitcoin left, right, and center. Michael Saylor's Microstrategy has bought at least $6 billion worth of Bitcoins in two tranches this month, with a third $2.2 billion tranche reportedly coming soon.
Bitcoin's Price Trend in the Last 7 Days
CoinMarketCap
It is likely that BTC will reach $100k by the end of this week.
This achievement marks the beginning of a new era in Bitcoin because it would ensure that Bitcoin sees much more adoption among mainstream assets. It would not only establish Bitcoin as a mainstream asset but also increase the adoption rate to par with Gold.
It would ensure that more investment companies, retail investors, corporations, and wealth funds invest in Bitcoin, which would further push its prices higher. Currently, Bitcoin ownership among mutual funds is zero; among pension funds, less than 1%, and even among wealth and sovereign funds, it has a minor share among all assets.
Another impact of Bitcoin's high growth rate is that it would pull all the crypto markets higher. Those looking for BTC-like cryptocurrencies would end up buying other cryptos like DOGE, BCH or LTC that closely resemble Bitcoin in working.
Bitcoin has been a top-performing asset since its inception. The top cryptocurrency has outperformed even the best-performing traditional assets.
In a report by MicroStrategy, Michael Saylor highlights that Bitcoin has outperformed top US indices like the Nasdaq 100 by over 46%, beat monetary inflation (US Dollar) by 47%, outperformed Gold by 56.3%, and several other assets by huge margins.
However, there are some misconceptions about Bitcoin that need to be addressed.
First, Bitcoin is not a way from rags to riches, at least not in the short term. It can be used to build wealth faster than other assets but it is not magical formula for instant riches. It is essential that users also factor in the drawdowns during the Bitcoin bear cycles.
Second, Bitcoin will eventually reach the predicted targets of $200, $300k, $500k, and even $1 million. However, these targets will be achieved in the long run, probably by the year 2040.
Third, we come to one of the most controversial lines. Bitcoin is not the solution to the US Debt Crisis. But it can play a part in the solution. The US government's debt currently exceeds $35 trillion, much higher than Bitcoin's combined market cap of $2 trillion (at press time).
US Government Crypto Holdings as on Arkham Intelligence
Arkham Intelligence
A closer look at the US debt crisis shows that in the last two decades, the US debt has almost tripled, increasing after the 2008 global financial crisis and more so after 2020 due to the COVID pandemic.
According to the US Treasury, this debt exists primarily in the form of Treasury Bills (T-Bills) and costs US taxpayers $84 billion each year to make interest payments. At present, the US economy is around $30 trillion.
The usage of Bitcoin to solve this debt crisis is like using a fire extinguisher to cool down a volcano.
Even if Bitcoin were to reach $1 million today, it would only be able to pay off $2 trillion in US Debt. At present, the US government holds almost 208,000 Bitcoins, which would be around $208 billion. This is less than 0.5% of the total debt.
The US would have to purchase more Bitcoins for its debt plan in the future. Still, it would fall short massively.
Standard Chartered, which owns one of the largest bank networks in the world, has predicted a price of $200k per BTC within 2025. It earlier predicted that Bitcoin may reach $125k if Donald Trump becomes president.
Yesterday, Cathie Wood predicted a $1.5 million price target for Bitcoin by 2030. She has been a top Bitcoin advocate, and her company, ArkInvest, issues Bitcoin ETFs.
Notable author Robert Kiyosaki, who wrote Rich Dad Poor Dad, endorsed Michael Saylor's prediction that Bitcoin would reach $15 million by 2045. Saylor has been a Bitcoin advocate for a very long time and has invested around $15 billion in BTC via his firm, MicroStrategy. Recently, MicroStrategy crossed $100 billion in valuation.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.