Bitcoin price could reach USD 100,000 if BTC replicates the gains it made from March

Bitcoin’s price has more than quadrupled from its March low and has risen 156% so far this year.

The price of Bitcoin (BTC) has quadrupled in the last nine months, which means that another similar rebound will put $100,000 on the table in the foreseeable future.

Institutions buy Bitcoin at $19,000 while the GBTC premium reaches a 6-month high

Bitcoin (Coinbase) daily chart. Source:
Dan Tapiero, co-founder of 10T Holdings, does not expect the price of Bitcoin to reach $100,000 in the next nine months. But he said this shows how fast the asset is growing and its long-term potential. He wrote:

„It is remarkable to think that just 9 months ago #bitcoin was at 4000. It has had almost a 500% recovery so far. The 500% rally from here puts us at 100k #btc. I don’t think it can happen in 9 months, but it would only be replicating what was done in the last 9 months. It’s hard to understand a market that is growing so fast.
Why is Bitcoin growing so fast?
Bitcoin has evolved rapidly over the course of 2020 due to three factors. Firstly, the reduction in new supply after May’s halving has obviously reduced sales pressure.

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Second, the increase in institutional demand has led to a considerable increase in purchasing pressure on BTC.

Third, long-standing BTC holders have continued to express confidence, which has boosted market sentiment.

For institutions, the sudden drop in Bitcoin’s price to less than $4,000 in early 2020 was also a compelling entry point. It was one of the worst performing assets during the pandemic-induced collapse in March, falling by around 50% to just $3,596 on BitMEX.

Since then, Bitcoin has shown resilience and staying power, eventually recovering back to an all-time high and reaching a new record high of over $19,982 on Coinbase on December 1.

At the same time, investors such as MicroStrategy CEO Michael Saylor believe that BTC is in a much stronger position now compared to the previous bullish cycle. For one thing, today’s retail interest is only a fraction of what it was during the euphoria peak in December 2017.

In addition, the growing perception of Bitcoin as a digital store of value and an indispensable tool in every portfolio has boosted its brand image among large investors along with record institutional flows. All this raises the possibility of a six-figure price as soon as next year. Some analysts have even predicted $200,000 or more by December 2021.

„Digital Gold“
Since it is often referred to as „digital gold“, one of the bullish cases for Bitcoin is closing its valuation gap with the precious metal. At $9 trillion, Bitcoin’s market capitalisation of $300 billion is only 3% of gold. If BTC were to reach $100,000, it would reduce this gap to 23%.

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The price of Bitcoin has risen 100% against gold since September with a BTC now buying more than 10 ounces. At the same time, analysts have seen record outflows from the gold market in recent months, some of which ended up at Bitcoin.

Correlation between BTC, gold and S&P500. Source: Cointelegraph Markets, Digital Assets Data
As Cointelegraph reported, the US dollar may weaken further in 2021, something that has traditionally driven both Bitcoin and gold.