Bitcoin (BTC), the king of cryptocurrencies is unrivalled in the market. Being the original cryptocurrency, it is the most sought-after coin. When debate about the success of Bitcoin broke out and investors started considering other newer coins, Bitcoin, once again, showed why it is the market leader.
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The new year has been more than good to the cryptocurrency. Starting from just $20,000, the cryptocurrency achieved phenomenal growth in a span of few months and climbed up to $50,000. The price level of $50,000 was considered to be a long-term price target but Bitcoin proved its potential. The next optimistic target is set at $100,000 and given the performance of the coin, it seems like a possibility.
Reasons to be bullish on Bitcoin (BTC)
Performance and technical analysis
A trader has identified the cryptocurrency in an ascending channel formation based upon the trajectory of the coin. Per the trader, the cryptocurrency is expected to break out from the formation in May with a price level of $100,000.
The market sentiment for the cryptocurrency continues to be bullish and investors are no longer wary of market corrections. Bitcoin has established such a stronghold that major corrections of the coin have been kicked out of picture. Given the current growth, traders expect the cryptocurrency to pick up again even if the market goes into corrections.
Being the market leader has its own perks. With the rise in the popularity of cryptocurrencies, institutions have also diversified their portfolios by including cryptocurrencies. Bitcoin is the most viable option for institutions because of its reputation and growth. Tesla had invested around $1.5 billion in Bitcoin. Following suit, another firm by the name MicroStrategy bought Bitcoin worth $2.1 billion. Twitter is also rumored to invest in the cryptocurrency if employees demand salaries in Bitcoin.
Digital gold rush
Gold has been a safe haven investment and although Bitcoin can never offer the safety that gold does, the cryptocurrency has been gaining increasing popularity. The Bitcoin to gold ratio has now exceeded one while the exchange-traded funds of gold continue to drop. Bitcoin is also dubbed as the digital gold and may very well be underway replacing the actual gold as an investment asset.
A report published by the investment bank used three different metrics to evaluate the true value of the cryptocurrency. Under the first metric, Bitcoin (BTC) is evaluated with keeping its number of users in mind places the cryptocurrency on a meagre $21,667. However, the next two metrics – the first on the basis of current supply and price of gold and the second on the basis of supply and global value of money – places the value of the cryptocurrency $540,814 and $1.9 million respectively.