The Bitcoin world is currently in a strange situation.
Prices are booming, but few celebrate. Big companies hold Bitcoin and make huge profits from it, but they don’t get a lot of attention. Even billionaire investors support Bitcoin, and yet only a few outside of the crypto bubble are taking notice. Why hasn’t bitcoin mania set in yet?
“In my opinion, most cryptocurrency proponents / investors have a long-term belief / outlook on them, and they had no doubt that we would return to the 2017 ATH, much like we did in previous cycles,” said John Dantoni, research analyst at The block, told Decrypt.
“While Bitcoin has done very well since the start of the year and is likely to see a correction (at some point), that doesn’t feel like euphoria to me,” he added.
At the current price, almost all Bitcoin holders – possibly 98% of them– are in profit. In fact, Bitcoin has only traded at a higher price for four days in its history. So it’s no surprise that few were happy with the idea when I asked my Twitter about the price of Bitcoin, which could potentially reach $ 20,000. You look far beyond this paltry milestone.
“When it hits 20,000, I’ll wait for it to hit 100,000,” one Bitcoiner wrote on Twitter.
“HODL !!!! If it hits MID 6 numbers, I may have to make a decision. But we’ll see, ”said another.
But if the crypto community is riding this wave, then why hasn’t the rest of the world joined in?
Bitcoin mania kickstarted
Maybe there’s one thing we’re missing: when Bitcoin hit $ 20,000, it didn’t match an earlier all-time high – it blew it out of the water. The craziness didn’t start until Bitcoin rose 20 times higher than its previous high of $ 1,000.
One Citibank analyst seems to be thinking along the same lines. In a recently published market report, Tom Fitzpatrick, chief executive of US bank Citibank, suggested that Bitcoin could reach $ 318,000 if it follows the same course as it has over the past seven years. That’s roughly 16 times its previous all-time high.
“In order for the euphoria of traditional investors to set in, crypto blue chips (mostly just Bitcoin, perhaps Ethereum) must clearly outperform the percentage increases in the stock markets,” said Dantoni.
“These investors must feel like they are missing out because they don’t have crypto exposure in their portfolio. It’s harder to feel like you’re missing out when stocks have been more volatile than in the past and certain stocks like Tesla are trading like lower-priced altcoins, ”he said.
Alternatively, investors can wait for Bitcoin to show that it can compete with important commodities like gold.
“While everyone has been waiting for the next milestone these days: 10,000, 15,000, 20,000, it could soon be a matter of waiting for BTC’s market capitalization to reach such milestones. No reason why digital gold shouldn’t be at least 10% of the market capitalization of real gold, ”said Antoni Trenchev, managing partner of Nexo Decrypt.
Another consideration is that investors may have been jaded by outrageously bullish price predictions over the years. These ranged from Anthony Pompliano, co-founder of Morgan Creek Digital Estimated $ 100,000 by 2019 John McAfee’s risky stake of $ 1 million by 2020. With such high expectations, $ 20,000 is hardly a good thing.
It will take a little longer before the world is conquered again.