Is it possible that the price of Bitcoin will climb to 100,000 USD?

invest, price, Bitcoin, week 40

The price of Bitcoin has fallen unexpectedly this year, but Bitcoin is recovering and its price continues to rise. We are now at around $ 12,000.

Let’s see if it’s possible that the price of Bitcoin could reach around $ 100,000.

Correlation with markets

Traditional markets still affect the price of cryptocurrencies. Higher correlations with gold also have an effect. Basically, we can say that as the stock market rises, the price of gold and BTC falls. And as gold and BTC prices rise, the stock market falls. We can deduce from this that the stock market crash may result in a possible future rise in the price of Bitcoin, and as it was always the case, the development of Bitcoin will be followed by other digital currencies.

History

In order to better understand the future, we need to look into the past. An example is the Great Depression of 1929-1933. This crisis has caused many things. Real estate prices fell, as did market capitalization. Then, for a few years, prices rose and in the end the market collapsed. In addition, the S&P 500 index has been growing steadily since 2009. These historical data have made some people think that a similar situation awaits us in the future. And because we now have Bitcoin, it will be reflected in its price.

What’s happening right now

In 2018, we experienced a larger market correction. A similar correction took place in 1928. During last year, Fed supplied the markets with liquidity. Hundreds of billions were provided to banks every month. Excess liquidity was supplied to the stock market.

This system works as long as the value of the assets increases. But that growth cannot be infinite. The collapse begins when people run stop buying stocks.

Currently, retail sales are declining. User activity is declining and the stock market has long since moved away from the real economy. All these factors will cause a collapse in the future. However, the problem is in the consequences, no one knows what they will be.

Conclusion

History has one bad feature. It repeats itself, and so far we see the same type of events that existed between 1929 and 1933. So if you have the opportunity, think about how you will protect your money from possible collapse.

Source: medium.com

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