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Is Bitcoin ready to hit the $100,000 mark: what do the indicators say?

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Bitcoin has shown a lot of volatility this year

Bitcoin has shown extreme volatility this year. From a low of $30,000 (₹22.51 lakh) in May-June to a high of $64,000 (₹48 lakh) in April, the world’s largest cryptocurrency has been on a wild swing. A month ago it was trading at around $50,000 (₹37.51 Lakh), then it hit a low of $40,000 (₹30 Lakh) and then reached its current level of around $62,000 (₹46.52 Lakh). Throughout all these ups and downs, bitcoin has managed to recover every time it loses its value, raising investor expectations for its long-term future. The recent rally has raised hopes that bitcoin is soon poised for an unprecedented rally.

The biggest question on every investor’s mind is will bitcoin reach $100,000 (₹75 lakh) this year? While the idea is valid, how much water is in it? Is it really a possibility? To understand whether this can be achieved, let’s look at what works in favor of bitcoin.

Bloomberg’s Crypto Outlook report has fueled the idea. The report said that bitcoin was more likely to reach $100,000 this year than it was to drop to $20,000 (₹15 lakh). In line with this prediction, bitcoin has gained about 25 percent over the past month.

Crashes and rallies this year also brought a renewed focus on bitcoin, making it a household name. Fencers began to notice the rise in popularity of a new type of currency that was only available virtually and was giving huge returns to some. Add to this the endorsement by billionaire tech entrepreneurs like Tesla and SpaceX CEO Elon Musk and Twitter’s Jack Dorsey.

Also, investors expect bitcoin to have seen a rally during this time last year. Bitcoin was trading a little over $11,000 (₹8.25 lakh) on October 16, 2020. Over the remainder of the year, it nearly tripled its value. On January 1 this year, bitcoin traded at around $30,000 (₹22.51 lakh) and continued its upward trajectory until May, when a market crash caused by Chinese action on miners washed away most of its gains.

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