Bitcoin will reach $100K this summer: is this a cryptocurrency bubble or market overheating?

23-03-2021

Recently, the bitcoin value periodically updates its historical maximum. This situation pleases traders wishing to earn extra money and worries experts. Analysts suggest that in the near future the excitement may end with a rapid collapse of the rate.

Bitcoin Price

What’s going on in the market

Bitcoin is now in a bullish trend, which has led the digital currency to rise in value by more than 150% over the past 3 months. Cryptocurrency exchange co-founder Bobby Lee believes that the uptrend could bring the price of bitcoin to $300,000, after which this bubble will burst with the subsequent inexorable decline in quotations. Lee predicts that Bitcoin will reach $100,000 as early as the summer of 2021, and the CEO of cryptocurrency exchange Kraken, Jesse Powell, suggests that the coin could rise to $1 million.

“Bitcoin bull market cycles happen every four years, and the current cycle is a big cycle. I think bitcoin could really go up to $100k this summer,” Lee says.

What to expect in the near future

Experts are confident that it is not yet necessary to judge the final maximum price of bitcoin, although, after the growth of the rate, we again see its decline. A similar picture was in 2017 and 2020 when the value of the main digital coin fell for some time after the rise. 

Given the current situation, we can assume that the “bubble” is being inflated not in the cryptocurrency market, but in the general market. We are now seeing an increase in the prices of art, cars, and luxury real estate. At the same time on the stock market, the correlation between the amounts of shares bought and sold scares investors, bond yields are falling, and inflation exceeds the real rate on many deposits. In this situation, traders are increasingly attracted to liquid digital assets that do not require paperwork or long waits for the re-registration of documents. 

Many experts deny there is a bubble in the cryptocurrency market, calling it simply overheated. At the same time, large investors and funds are actively investing in digital assets. According to Nikolay Bagamanov, a leading expert at Forex-Review, this situation is more likely to provoke the development of a bubble in the securities market.

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