Next Bitcoin Rally Could Return 32x
While many investors have been enamored with Monday’s short-term rally, which has seen Bitcoin (BTC) run by 8% to near the ever-important $4,000 level, some analysts have kept their trading mindsets static. Financial Survivalism, a self-proclaimed “financial revolution prepper,” recently remarked that in the long-term, the flagship cryptocurrency could “melt our faces off” with a jaw-dropping rally.
In a recent tweet, the seeming anti-establishment figure claimed that while the last cycle returned 16x, as BTC ran from ~$1,200 to $20,000, the next cycle could post even greater returns. Survivalism, attributing to hopeful forecast to adoption and Bitcoin’s resiliency on a global stage, thus concluded that a “pump to ~$750,000” wouldn’t be illogical. For some perspective, if Bitcoin was trading for $750,000 apiece, the asset’s market capitalization would reach $13 trillion, making it one of the, if not the largest currency in circulation.
Somewhat jokingly, Survivalism added that as most analysts will be calling for $1,000,000, many will forget to profit-take before the next crypto winter. Interestingly, while such a sum seems crazy and even impossible, he isn’t the only industry commentator to be making such optimistic, but slightly out of this world claims.
Zhu Fa, the co-founder of China-based crypto mining group Poolin, recently took to WeChat to make a prediction quite reminiscent of the one made by Survivalism. For those who missed the memo, the Chinese mining kingpin claimed that the peak of Bitcoin’s next rally will likely be situated at around $740,000, or five million Chinese yuan. Fa did remain somewhat cautious though, noting that his predictions come with a substantial margin of error.
Survivalism’s $750,000 quip comes just days after he took a 0.1 BTC bet with Murad Mahmudov, a partner at Adaptive Capital, that BTC will hit $1,165 before $10,000 to embark on its next bull surge.
Crypto Catalysts
While such a sum seems crazy, some argue that from a fundamental point of view, Bitcoin can easily break out of its quintuple-digit cell.
Mahmudov took to Tone Vays’ Youtube channel to explain his rationale behind a long-term rally in the Bitcoin price at 2019’s start. He remarked that while this market’s bottom is likely still in the works, Bitcoin’s potential to revolutionize global finance is as apparent as ever. Explaining why he’s a “HODLer of last resort,” the analyst noted that BTC’s fixed supply issuance schedule is the sole catalyst that will beckon in billions of U.S. dollars into Bitcoin over time.
In fact, he claimed that based on his models, which considers up to twenty fundamental factors, including supply, there will be a far bigger bubble in 2023 compared to late-2017’s. Mahmudov noted that 2017’s bubble will be so relatively small that it can be likened to the Dotcom industry in 1994, rather than the 2002/2003 that pundits refer to. The analyst’s fundamental factors, coupled with the fact that there’s over $17 trillion worth of equity worldwide, along with over $100 trillion worth of all forms of money and value stores, made it clear that Bitcoin has likely got more than enough room to run.
Filb Filb, one of Mahmudov’s researcher peers, made a similar comment. Through the use of regression and statistical analysis, taking the swelling worldwide debt sum of $274 trillion and combining it with BTC’s current level of adoption, Filb determined that a fair valuation for Bitcoin is ~$74 billion.
While this indicates that BTC is currently fairly valued, Filb explained that the crypto asset will continue to see its use swell in the years to come. In fact, harnessing data from the Internet industry’s cycles, it was revealed that if all pans out for Bitcoin, $333,000 could just be in the cards.
Photo by Tim Mossholder on Unsplash
