In terms of price, Bitcoin has been on a rough patch for almost two years. In the altcoin season of 2021, the cryptocurrency's price skyrocketed from its lows around the $20,000 mark to a high of about $65,000.
The hope that bitcoin will experience many more pumps like these is still very much alive. A great example of one such target is the BTC at the $1 million target.
Very much so! Bitcoin has a supply cap of 21 million, meaning that only 21 million BTCs will ever exist. What does this mean for its price? It means that through thick and thin, the only place the price of bitcoin will ever go is up.
Coupled with the BTC halvings that happen once every four years, the BTC price is expected to experience many more pumps than it did in 2021.
Therefore, the question of BTC at $1 million is not a matter of how but of when.
Many analysts have agreed that bitcoin at this price is possible and even achievable. One such is the anonymous host of InvestAnswers, a YouTube channel.
The host of this channel is a crypto analyst who believes that bitcoin could even be worth millions of dollars within eight years, as individuals and corporations continue to flock towards it as the leading digital asset.
In a recent YouTube video from this channel, the host tells all 440,000 of their subscribers that according to the law of diminishing returns, BTC has historically offered five times lower returns after each cycle.
The analyst also references Metcalfe's law. It is a Law related to telecommunications and networking states that a network's value is proportional to its number of users.
The video compares Metcalfe's law and the bitcoin network, speculating that while the number of bitcoin users grows, the network and, therefore, the price of the native cryptocurrency grows.
Since its creation, bitcoin prices have always had ups and downs. The recent crypto winter is only one of those ups and downs.
Over the last ten years, the price of BTC has increased significantly and then experienced significant corrections. For example, in April 2013, bitcoin fell by a shocking -83% from a high of $260 to $250. Throughout 2017-2018 again, the price fell 84% from $20,000 to below $12,000.
BTC is down about 60% from its all-time high for the current year.
As mentioned earlier, after each halving, the price of BTC enters a new cycle and soars to highs of multiple times its original value.
The last one saw BTC move from $20,000 to about $65,000. from now till 2030 (a space of 8 years), two halving events are expected to occur. One in May 2024 and the other in May 2028.
Judging from data from all the bitcoin halvings and their subsequent price surges, bitcoin moves up by an average of 3,194% after every halving
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)