On February 9, the price of bitcoin had exceeded $ 10,000, breaking through key psychological levels and reaching its highest point since October last year.
But for many, $ 10,000 is just the beginning before this top cryptocurrency reaches a higher level. Anthony Pompliano (Pomp), co-founder and partner of crypto investment agency Morgan Creek Digital, believes that due to limited supply and increased demand, the price of Bitcoin will reach $ 100,000 by the end of 2021:
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"Bitcoin has just reached $ 10,000. I still think that by the end of December 2021, Bitcoin will reach $ 100,000. Because of a fixed supply. Increased demand. Time will tell."
As crypto analyst Willy Woo commented on Twitter earlier today, this is big news for Bitcoin holders.
"This breakthrough is the real key. Fundamental investment activity will support this $ 10,000 breakthrough."
BitMEX co-founder and CEO Arthur Hayes is also optimistic about the future price of Bitcoin. He commented on Twitter:
"Nothing can stop me, I have been moving forward! Steady and steady is the key to winning the game. Let's climb the ladder of #bitcoin $ 20,000."
The nature of Bitcoin's fixed supply and its increasing demand
Bitcoin has many attributes that are critical to its success. Deflationary monetary policy; a hard cap that can be determined and predicted. Because bitcoin must be mined digitally, and bitcoin's supply is limited, it can be compared to gold in many ways.
Bitcoin can only mine up to 21 million bitcoins in total, and about 18 million bitcoins have been mined so far. In addition, Bitcoin will be halved in May this year, and its supply will be further reduced to a rate of about 1.7% per year.
Since 2010, Bitcoin has shown high price volatility, sparking debate about the root cause of demand from economic entities. In the short term, most publics consider Bitcoin as a speculative asset. When the Sino-U.S. Trade war started earlier last year, bitcoin prices also skyrocketed.
Many people are looking for a safe haven while transferring their stocks, fiat currencies and assets to Bitcoin. In the long run, this demand may be driven by Bitcoin's recent expectations as a medium of exchange.
Cointelegraph writer Michaëlvan de Poppe stated on Twitter that the price of Bitcoin has reached a temporary high and is expected to fall back at some point:
"However, I think we will peak here for a while and make lateral adjustments."