Bitcoin moved sideways during the day after mounting selling pressure pushed the price back into the middle of current levels. The largest cryptocurrency by market capitalization is currently trading at $ 47,300.
Despite the slowdown in the crypto market, the mood has turned for the better. Florian Grummes, Managing Director of Midas Touch Consulting, recently supported the optimistic thesis for long-term development. In an interview with David at Kitco News, Grummes reiterated his prediction about Bitcoin, claiming that the cryptocurrency will venture into uncharted territory in 2021.
With that in mind, he expects the BTC price to soar above the $ 100,000 mark in the next six months as fresh capital hits the market. Financial institutions could have bigger motivations to get into BTC. Cryptocurrency is among the best performing assets of the decade and, as Grummes said, these entities are “under a lot of pressure to get their investments performing well.
The CEO of Midas Touch believes that Bitcoin was designed to perform well in the current economic conditions. He said:
(…) many institutions still have to catch up, and I think that all of this has been implemented in game theory by Satoshi (Nakamoto, creator of Bitcoin) and works wonderfully.
In the short term, Grummes admitted that the BTC rate had seen a “good” upturn in recent weeks. However, the upward sentiment generated by this price development could turn into “greed”. Therefore, he advised caution to those looking to get started, adding:
I wouldn’t buy at this level. I’m waiting for a pullback, I’m pretty sure it’ll be heading towards $ 34,000 to $ 38,000 – this is where things get interesting again.
Bitcoin heading for $ 1,000,000?
This potential setback will provide more information about future price developments. Grummes did not rule out the possibility of reaching the start of the year around the $ 20,000 mark again if the BTC price fails to hold the support at $ 35,000.
On the contrary, if support stays in the middle of these levels, “it will hit $ 100,000 in the next 6 months”.
Regarding the factors driving the upward trend in price, Grummes referred to the exodus of BTC miners from China. Although much of the network was “eliminated”, the cryptocurrency went on demonstrating that “what doesn’t kill you makes you stronger,” said the managing director.
Should Bitcoin manage to climb to $ 100,000, business will, as usual, be highly volatile as people encounter the market with FOMO. This could lead to another 50% setback and a return to previous highs – a similar scenario to previous months.
After all, the first cryptocurrency by market capitalization could trade at $ 1,000,000 sometime “during the next decade,” Grummes predicted. However, this will depend on the monetary policy of the central banks.
If these facilities continue to “print money”, Bitcoin could absorb it and drive its price much higher. Short term owners and FOMO are the two main factors that could stand in the way of a new rally.