Industry executives and famous technical analysts, including Morgan Creek CEO Mark Yusko and trader Peter Brandt predict that Bitcoin (BTC) will reach $ 100,000 in the long term. For this to happen, the best performing cryptocurrency must see a consistent build-up.
According to option trader Theta Seek, for Bitcoin to remain stable at this price level, investors must invest $ 90 million in BTC every day.
Is a daily supply of $ 90 million in Bitcoin realistic?
The figure of $ 90 million is derived from the total amount of CTB miners can extract per day. After the halving of 2020, miners can generate up to 900 BTC per day.
If the price of Bitcoin reaches $ 100,000, 900 BTC will be equivalent to $ 90 million. ByteTree data shows that the miners sold all of the BTC they mined last week, possibly to cover operating costs.
Since miners typically sell what they mine regularly, the assumption that the selling pressure on Bitcoin can reach $ 90 million when the BTC reaches $ 100,000 is reasonable.
Theta Seek explained that one way to think about accumulating so much Bitcoin is to consider a consistent buying demand from retail investors. The merchant said:
“At 100,000 per BTC, the market must absorb a miner’s supply of 90 million US dollars daily. Assuming 10 million people around the world buy BTC regularly. It would cost them $ 9 a day to maintain these price levels. I have met people who spend more than $ 9 on coffee. “
The trader added that hodlers – a term used to describe longtime Bitcoin holders – have not sold in the last three BTC records, noting:
“The data suggests otherwise however, HODL-ers in the past 3 HUDs have not been sold in significant quantities. 60% of BTCs have not moved for more than 2 years. Even if that were to be true, BTC’s long-standing supply will ultimately equal the (new) mining supply. “
Glassnode market data similarly suggests that hodlers have been steadily accumulating Bitcoin since the price of BTC dropped to $ 3,600.
The Hodlers accumulated even more Bitcoin as the BTC fell to $ 3,600 in March. Source: Glassnode
In the last eight weeks before halving, Glassnode researchers Explain that the hodlers added to their positions with expectations of a higher Bitcoin price after the halving.
What would it take to reach $ 100,000?
The absorption of $ 90 million in daily sales pressure would keep BTC at $ 100,000, but would not lead to an upsurge at this stage.
For Bitcoin to reach $ 100,000, it would have to reach a market capitalization of $ 2.1 trillion. This represents about 25% of the gold market capitalization. In other words, the perception of Bitcoin as an established store of value must increase and the activity of the institutional, retail, futures and options market must reach new levels.
Bitcoin has seen progress in its recognition as a store of value in recent months. JPMorgan became the first major bank to open accounts for cryptocurrency exchanges and Grayscale recorded record institutional activity in the first quarter of 2020.