The Bitcoin world is in a strange situation right now.
Prices are booming but few are celebrating. Big companies own Bitcoin and make huge profits from it, but they don’t get much attention. Even billionaire investors support Bitcoin, and yet only some outside the crypto bubble are taking note. So why hasn’t the Bitcoin mania started yet?
“In my opinion, most of the cryptocurrency advocates / investors have a long term belief / outlook on them, and there was no doubt in their minds that we would come back to ATH 2017, just as it l ‘has done in previous cycles,’ John Dantoni, research analyst at The block, Told Decrypt.
“While Bitcoin has performed very well since the start of the year, and will likely even see a correction (at some point), that doesn’t strike me as a euphoria,” he added.
At the current price, almost all Bitcoin holders – potentially 98% of them– Are in profit. In fact, Bitcoin has only traded at a higher price for four days of its history. So it’s no surprise that when I asked my Twitter account about Bitcoin’s price potentially reaching $ 20,000, few were happy with the idea. They are looking way past this meager milestone.
“When it hits 20k, I’ll wait until it hits 100k ..” one Bitcoiner wrote on Twitter.
“HODL !!!! When it hits MID 6 digits then I might have a decision to make. But, we’ll see, ”said another.
But if the crypto community is riding this wave, why hasn’t the rest of the world joined in?
Start the Bitcoin Mania
We may be missing one thing: When Bitcoin hit $ 20,000, it didn’t hit an all-time high – it blew it out of the water. The madness only started when Bitcoin rose 20 times higher than the previous high of $ 1,000.
A Citibank analyst seems to think in the same direction. In a recent market report, Tom Fitzpatrick, chief executive of US bank Citibank, suggested that if Bitcoin follows the same path as the past seven years, it could reach $ 318,000. This is roughly 16 times the previous historical record.
May be then we’ll see bitcoin themed riders and flashy lamborghinis.
“For the euphoria to come from mainstream investors, I think blue chip crypto (mostly Bitcoin, maybe Ethereum) needs to dramatically outperform the payoff percentages we’re seeing in the stock markets,” Dantoni said.
“These investors must feel like they are missing out by not having crypto exposure in their portfolio. It’s harder to feel like you’re missing out when stocks have been more volatile than they have been in the past and specific stocks like Tesla are trading like low-end altcoins, ”he said. he declared.
Alternatively, investors can wait to see Bitcoin show that it can compete with major commodities like gold.
“While these days everyone was waiting for the next milestone: 10km, 15km, 20km, there may soon be a question of waiting for BTC’s market capitalization to start hitting such milestones. No reason why digital gold shouldn’t equal at least 10% of real gold’s market cap, ”said Antoni Trenchev, Managing Partner of Nexo. Decrypt.
Another aspect is that investors may have been blunted by outrageously bullish price predictions over the years. These ranged from Morgan Creek Digital co-founder Anthony Pompliano estimate of $ 100,000 by 2019 to John McAfee’s risky bet of $ 1 million by 2020. With expectations this high, $ 20,000 is hardly rewarding.
It will take a little longer to capture the world again.