Bitcoin’s value continues its ride, hitting $23,000

Photo (c) George - Getty Images

Analysts think anything -- like $100,000 or more -- is possible

Evidently, Santa is big on Bitcoin (BTC). The value of the cryptocurrency eclipsed the $21,000–$22,000 resistance range on Thursday, soaring to a new high of $23,000. One on-chain analyst says that Bitcoin’s potential is off the chain, and $100,000 is a “ridiculously low” target.

For its believers, punching through the $21,000 mark was important for Bitcoin to spur its rally in the short term. According to Cointelegraph, exchange heat maps -- an at-a-glance visual of historical and real-time market data -- showed stacked sell orders at around $21,000 to $21,500, which meant Bitcoin’s price had to get past that point in order to see a broader uptrend.

Just a month ago, Bitcoin’s value soared past $18,000. Experts say the erratic digital currency has rallied lately for a variety of reasons. But more than anything else, it’s benefited from a weaker dollar and from being viewed as a more solid alternative to government-backed paper currency. 

Is $100,000 a real possibility?

While it might seem like fantasy to those who think this whole cryptocurrency thing is one giant fairy tale, analyst Willy Woo said that the BTC Top Cap Model shows $100,000 is a “ridiculously low target” because of optimistic market sentiment and the sell-side crisis. 

“We are not at the all-time-high juncture where the BTC Top Cap Model starts curving upwards. Let’s see how high she runs in 2021. $100k is a ridiculously low target at the current trajectory. $55k is the next landmark.”

Woo says $55,000 is the next milestone for Bitcoin because that would put it at 10 percent of gold’s market cap of about $9 trillion. Gold is an important reference point for cryptocurrency watchers because it’s the benchmark safe-haven asset. 

In a separate conversation with Cointelegraph, Anthony Pompliano, Co-founder & Partner at Morgan Creek Digital, put the possibility out there that Bitcoin’s market cap will be “bigger than gold when they’re compared side by side “ by 2029.

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