The Dutch crypto analyst Michael van de Poppe has via X shared his vision about the coming years for bitcoin (BTC) and the crypto market. According to van de Poppe, we are on the eve of a true institutional bitcoin cycle and bitcoin will rise much higher than we can currently imagine. He even speculates that BTC could climb as high as $600,000 in the upcoming bull market.
‘Creating’ Bitcoin from home turns working from home into a lucrative gold mine
-
Bitcoin news
This bitcoin cycle will be different
This wild claim from the analyst is somewhat controversial. A bull market peak of $600,000 would go against a well-known principle: diminishing returns. Loosely translated, this means ‘reduced return’. This refers to the declining returns that each bitcoin cycle has recorded so far compared to the previous cycle.
In 2017, BTC rose 12,000 percent from the cycle bottom. In 2021, this percentage was 2,000 percent. According to this principle, the bitcoin price would be in the following bullrun so it can never rise more than 2 thousand percent.
Such a rise would already take BTC to an astronomical high of $300,000. But Van de Poppe thinks that we can throw the theory of diminishing returns overboard. For example, he believes that the previous peak of $69,000 was heavily manipulated by the now bankrupt crypto exchange FTX. He also compares bitcoin, as a technological advancement, with the tech stocks that are currently booming.
He also mentions the importance of the bitcoin spot ETFs. In the first few weeks since the launch of the ETFs, several billion dollars have already flowed into bitcoin funds. And it won’t stop there, says Van de Poppe. More and more institutions will choose bitcoin as a hedge against the US dollar. He thinks the ETFs will create a huge bull market.
Bitcoin price to $600,000?
It is also not certain how long this bull market will last. According to van de Poppe, this mainly has to do with the liquidity cycle. The US Federal Reserve will play a major role in this. As long as interest rates fall, there will be an optimistic investment climate. Van de Poppe thinks that the bitcoin peak will occur at the end of 2025. But if liquidity remains high, the cycle could continue until 2026 or even 2027.
But how high will bitcoin rise in this bull market. Of course, Van de Poppe does not have a crystal ball and cannot predict this with certainty. He does think that the upcoming bull market will resemble the famous ‘dot.com’ bubble of the late 1990s. He suggests that a value of $250,000 is certainly within reach. But if circumstances are right, he even foresees a possible amount of $600,000.
Post Views: 730
2024-02-11 19:04:39
#Bitcoin #forecast #Dutch #analyst #expect
