Bitcoins Next Breakout? Experts Say $200K Is Long Overdue
The post Bitcoins Next Breakout? Experts Say $200K Is Long Overdue appeared first on Coinpedia Fintech News
Despite global economic uncertainty and a series of market shocks, several leading voices in the cryptocurrency space say Bitcoin is on the verge of a massive breakoutone that could take most investors by surprise.
Samson Mow, CEO of Jan3 and a longtime Bitcoin advocate, recently expressed astonishment that Bitcoin is still trading under $100,000. We should have hit $200,000 already, and it shocks me every day that were not there yet, Mow said in a recent interview with Milkroad.
Short-Term Fear, Long-Term Accumulation
Many in the industry attribute Bitcoins suppressed price action to fear-driven market sentiment and a temporary liquidity crunch. Approximately 2 million coins remain active on exchanges, contributing to short-term volatility. However, long-term holdersor hodlerscontinue to accumulate, reducing overall circulating supply and tightening what Mow calls the spring behind Bitcoins eventual surge.
Historical precedent supports the possibility of a sudden upward move. In 2017, Bitcoin rose nearly 17x in less than a year, during a period of relatively calm global conditions. Now, with economic instability, rising geopolitical tensions, trade wars, and currency devaluation in play, many believe the conditions are even more favorable for another explosive rally.
Bitcoins History Suggests Explosive Moves Are Possible
Other indicators also point to an impending structural shift. Bitcoins hash rateconsidered a leading signal of network strength and miner confidencecontinues to climb, reaching all-time highs. Mow suggests that sovereign entities may now be involved in mining, driving this surge in computational power with little regard for profitability, thanks to access to free or excess energy resources.
This same price-insensitive mindset appears to be influencing Bitcoin buyers as well. Corporations like MicroStrategy continue to accumulate Bitcoin regardless of short-term price fluctuations, reflecting a long-term belief in its store-of-value potential. The big question now is whether this trend will spread to other companiesand even nation-states.
Once it becomes a race to print money to buy Bitcoin, Mow warned, then all the gloves are off.
With structural changes in mining, corporate accumulation, and growing sovereign interest, many analysts believe Bitcoin is on the edge of another major runpossibly beyond $200,000sooner than most expect.
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