Bitcoin has had an exciting year with highs in the high $60,000s and lows as low as $29,000. The high periods have led many to speculate that Bitcoin will hit $100,000 at some point this year.
We find that a little too optimistic after the most recent local crash down to around $50,000. With that out of the way, we will offer a fairly comprehensive take on when we expect Bitcoin to reach $100,000.
Bitcoin Can Hit $100,000
First of all, it is certainly possible for Bitcoin to hit $100,000. We obviously cannot make guarantees, but it seems just about certain that the price of Bitcoin will hit $100,000.
Why is this such a certainty?
The US Federal Reserve is printing an absurd amount of money. The most recent infrastructure bill proposed in the United States will spend $3 trillion in a single year. And not enough taxes are being raised to pay for that proposed spending bill.
This means that the government will simply print money to pay for everything.
The most obvious result is hyperinflation. Of course, the US Dollar is used to purchase oil, so that will save the currency from undergoing too much hyperinflation. But things are not looking good for the future of the currency.
This all relates to Bitcoin for a few different reasons. The most obvious one is that, well, the value of Bitcoin is denominated in US Dollars. This can become a little problematic if the dollar inflates too much.
$100,000 in 2023 will be less than $100,000 in 2020.
Note: That’s exactly why measuring cryptocurrency growth in US Dollars can be slightly misleading.
Now, inflation is good for the price of assets because people do not want to hold cash because it loses too much value. Bonds also become less appealing because they pay out in cash.
This forces people to move their cash into assets like stocks, property, gold, and Bitcoin. Stocks can be a little daunting for newer investors. Property is too expensive for most people (ie. you can’t easily put $5,000 into property). Gold has become a joke of an investment because the value stays the same or goes down.
Bitcoin stands out because it has beat every single asset by leaps and bounds when measured over the past decade. You already know the story, if you purchased $1,000 of Bitcoin, $1,000 gold, and $1,000 of the S&P 500 Index in 2011 and held until today, then the gold would be worth about $1,000, the S&P 500 Index would be worth around $20,000, and the Bitcoin would be worth around $22 million.
Numbers like that make it a very appealing investment. You simply cannot find another asset that has numbers like that.
When Will Bitcoin Hit $100,000?
Again, no one has a crystal ball that can predict the future and say exactly when Bitcoin will hit $100,000. We can only make reasonable guesses based on the current information available to us.
Here is some of that information along with a good guess on when Bitcoin can hit $100,000.
Bitcoin is in a Supercycle
Our first point is that Bitcoin is in a supercycle. For those unaware, a supercycle refers to a market situation in which Bitcoin does not enter a bear market after the bull market. Instead, the cryptocurrency continues to reach all time highs for an indefinite amount of time.
It appears we have entered a supercycle due to the large number of institutions that have gotten into Bitcoin along with one country making Bitcoin legal tender. From this point forward, it appears that Bitcoin will not enter another bear market on the scale of the one we saw after the 2013 and 2017 bull run.
This is a good thing for the price. It also indicates that Bitcoin reaching $100,000 is likely closer than most people expect.
Countries Will Continue Adopting Bitcoin
Another positive for the future of Bitcoin’s price is that countries will likely continue to adopt Bitcoin. El Salvador became the first country to make Bitcoin legal tender, which is a huge step in increasing global adoption.
El Salvador also will not be the last country to make Bitcoin legal tender. Brazil and Ukraine have discussed making the cryptocurrency legal tender. The logical assumption is that countries that use the US Dollar as their national currency or countries undergoing a currency crisis (ie. Turkey, Iran, Venezuela) will be interested in making Bitcoin legal tender and keeping an eye on the success of El Salvador’s program.
As you can imagine, countries making Bitcoin legal tender is great for the price. It leads to more demand as people need to purchase bitcoin to make transactions. Another perk is that it offers great publicity for those unsure about cryptocurrency. A country using it as legal tender adds a lot of legitimacy to the project.
The US Will Print Money
It’s almost a guarantee that the US federal government will continue to print an obscene amount of money in response to the COVID-19 pandemic. We already saw this in 2020 when the US printed 25% of the total money supply in a single year.
That’s a lot of currency to print in a single year.
This pattern did not really stop in 2021. It appears that it will not stop in 2022 due to the emergence of the Omicron coronavirus variant.
As we mentioned earlier, inflation is good for the price of assets. And Bitcoin is most certainly an asset.
Our Guess for Bitcoin Hitting $100,000
We predict that Bitcoin will hit $100,000 in the first half of 2022. It’s a broad time range, we know, but offering an exact date is practically worthless because it’s so difficult to predict that information so far in advance.
Our prediction obviously should not be construed as financial advice – it’s simply a prediction based on a variety of conditions including market conditions and real life conditions.
We simply see very few scenarios in which Bitcoin enters a bear market in 2022. The adoption of Bitcoin by countries has already begun, major companies have purchased it as a hedge against inflation, and the US economy and dollar is not getting any stronger.
That covers it for our prediction and reasoning behind Bitcoin hitting $100,000. The first half of 2022 simply makes the most sense based on market conditions. We admit that it could be earlier, but the price rising that dramatically in less than a month seems unlikely.
We’d also like to remind you that this is a prediction, and predictions can be wrong. One thing we do know for certain is that the price of Bitcoin will continue to rise in the long term. Just about every investor of Bitcoin has made money.