17.06.202118:40 Forex Analysis & Reviews: Bitcoin: Three reasons for growth to $100,000 by end of 2021

An increasing number of analysts express the opinion that now is the best time to buy bitcoin, and the current consolidation should be perceived as a phase of accumulation.

The well-known Mike McGlone, a senior commodity strategist at Bloomberg, notes, not for the first time, that market conditions in 2021 are ideally suited for bitcoin to reach the price level of $100,000 and exceed it.

McGlone identifies three key factors that will drive the growth of the entire crypto market. This is the halving of bitcoin last year, increased demand and acceptance from both the retail sector and institutional investors.

He also argues that Bitcoin is the most important asset in the financial markets of the future, as cryptocurrencies, gold, and metals will soon be the main mix of assets. He advises investors: "When in doubt, diversify and in a world of accelerating electrification, decarbonization, and digitization, we see a solid foundation for higher prices for a mixture of metals and cryptocurrencies."

Nevertheless, Bitcoin remains sensitive to unpredictable and sharp price fluctuations due to the influence of large market participants (whales). Elon Musk is currently considered the most disruptive factor for the predictability of Bitcoin and the cryptocurrency market.

Still, McGlone argues that fiat money inflation, growing adoption, and expanding demand versus a shrinking supply of bitcoin create an ideal environment for Bitcoin to grow in the long term.

"The #Bitcoin $100,000 has a bullish trump card up its sleeve: supply reduction. This year is followed by a reduction in the supply of bitcoins, which increases the likelihood of a price increase if past patterns persist."

Bitcoin is mathematics, which means that its future is 100% predetermined.

Previously, a similar opinion was expressed by the legendary hedge fund manager billionaire Paul Tudor Jones. He stated that based on the fact that Bitcoin is mathematics and mathematics has been around for thousands of years, Bitcoin will continue to rise in value exponentially, just like mathematical equations.

So what about the current drop? Even if Bitcoin falls below $30,000, it is still a downward correction in the bullish trend. And even a decline to $20,000, the 2017 high, will not be too critical for the long term, in my opinion.

But there is so little time until the end of 2021, you might say. Yes, but bitcoin can grow very quickly, and it's not a secret for anyone after the events of the first quarter and even the beginning of the second. Therefore, in my opinion, the global bullish forecast is still relevant.

Today, Pantera Capital CEO Dan Morehead urged newcomers and investors looking to buy bitcoin to do so now. According to him, the cryptocurrency market is currently below the trend and called it the best time to buy for new investors.

Interestingly, in his "June investor letter" from Pantera Capital, Dan Morehead writes that China's multiple bans on cryptocurrency are "the movie we've seen before," adding that investors who sell because of China's "ban" usually end up regretting it. He refers to previous years (2013, 2017, 2021), when China banned cryptocurrency, after which more than one period of growth followed.

Meanwhile, the accumulation period on the BTC/USD chart has not ended locally. Yesterday's forecasts are up-to-date, we are waiting for the situation around the level of 38,610.88 (red dotted line) to clear up.