Bitcoin has had a very exciting price history over the past year with the price rising to over $60,000 earlier this year in May. The price then collapsed to a hair under $30,000 per coin a month later.
Anyway, the price of bitcoin currently stands a little bit under $50,000 per coin, which is a comfortable price for bitcoin. But bitcoin holders obviously want the price to increase more.
Really, the next major milestone for bitcoin’s price is hitting $100,000 per coin. This article will cover the odds of this happening before the end of the year. Obviously, we can only speculate, but we can analyze historic trends to make a good estimation of the price.
Will The Price of Bitcoin Hit $100,000 Before Year End?
The odds of bitcoin hitting $100,000 at any point in the future are basically 100%.
It will happen at some point. There is no doubt about that.
However, predictions get a lot shakier when they combine a price prediction and a timing prediction. Especially in this case because we only have three months before the end of the year.
To answer the question, bitcoin will probably not hit $100,000 before the end of the year. It is simply too much of a price increase over too short of a time.
The price of bitcoin currently stands at ~$47,000. This means a 100%+ increase in price will need to occur within three months for the price to hit $100,000.
That is not likely to occur, period.
Of course, this is Bitcoin. The price can increase 100% within a week. It has done that in the past. Though it seems more unlikely that crazy short term price increases will occur again. The price has risen too dramatically for price increases like that to occur again.
That said, this is based on what is likely to occur. And a 100% increase over three months is more unlikely than any increase less than 100%.
Will The Price of Bitcoin Ever Hit $100,000?
Yes, the price of bitcoin will eventually hit $100,000.
Again, there really is not much to worry about for the following two reasons:
- Bitcoin has a hardcoded new supply that halves every four years. This means that the new supply cannot catch up with demand if the demand stays the same or increases. In other words, the price is almost guaranteed to increase.
- The unit of account is inflating heavily. In this case, the unit of account is the United States Dollar. The USD has seen an unprecedented amount of printing during 2020 in response to the COVID-19 pandemic. The Federal Reserve printed over 25% of the total money supply during 2020. There is no sign that the money printing will stop.
- The price of bitcoin will go up simply because the currency used to measure its worth has/will inflate. Is Bitcoin really worth $100,000 or has $100,000 become meaningless due to inflation?
To put this succinctly, bitcoin is an asset measured in USD. The value of USD decreases every year by design.
The nominal value of BTC will increase simply because the value of USD decreases
Fortunately, the real value of BTC will also increase because the block reward halves every four years (reward: halving the new supply). Demand should also increase as more people see the value in cryptocurrency.
Should I Sell Bitcoin If/When It Hits $100,000?
This obviously is not financial advice. You must make the decision that makes the most sense to you.
But you probably should not sell an asset during an inflationary period. Really, you should not sell a deflationary asset for an inflationary currency.
It just does not make financial sense on a long timeline.
The ideal situation is to have enough income where you never have to sell your BTC. If you really need the money, then taking out a loan with your BTC as collateral might be a better option than selling it.
Is It Too Late to Purchase Bitcoin?
No, it is not too late to purchase BTC.
We know that it seems like you missed the boat because there are people that bought BTC when the price was 4, 3, or even 2 figures.
In reality, most people (and institutions for that matter) still do not own any BTC. Adoption is also low enough that there will be plenty of demand in the future.
The opportunity is still there to purchase BTC. The ideal strategy is to dollar cost average your position over the next few years.
This will ensure that you do not purchase too high or too low because everything averages out on a long enough timeline.
You can also just buy a lot at once, but that can cause some psychological problems if you purchased at a high price.
Again, we do not have a crystal ball that allows us to look into the future and predict the price of bitcoin at a particular date.
We simply observe the information and make the best guess from that point. And all the information points to a long term price increase of BTC.
A huge nominal price increase of BTC is expected simply because US currency, and all fiat currency, will inflate all its value away. This means that assets will rise in nominal value because the value of assets is based on something more tangible than a central bank printing a nearly infinite amount of money.
Pinpointing an exact price to an exact time is simply too difficult to predict, though. You should not worry about year end and short term results for BTC. The price will increase on a long enough timeline.
Just keep in mind that holding onto your BTC for long enough will result in gains and you should be good.