As we all are familiar with, the price of Bitcoin had an epic run in 2017 reaching almost $20,000 in just a matter of months. The price of Bitcoin has again broken out of a multi-year price consolidation which looks like a great point to buy. The question now becomes; will the Bitcoin price reach $100,000?
Bitcoin Price Spikes
Let’s take a step back. 2017 was not the only time the price of Bitcoin made enormous gains. It has actually happened three times before that. It happened in 2011 and two times in 2013, all of which led to gains in excess of 1,500% (!)
Holders of Bitcoin became immensely rich almost overnight.
Many of these price spikes looked like a wedge on the chart, just like today, but is now well hidden in the chart because the price has run up so much. Who knows, perhaps this wedge pattern will look just like a flat line in a couple of years?
What Causes Bitcoin to Rise So Much?
Unlike fiat currencies like the US dollar, the euro and the Japanese yen, Bitcoin can’t be printed (see the FRED chart below of how the US dollar has been printed like crazy in recent years).
The supply of Bitcoin can only rise by a small amount each year depending on what the minders mine. Their incentive for doing so is receiving Bitcoin in reward. However, from time to time, the reward for mining Bitcoin halves, also referred to as Halving.
The Halving is crucial to the price of Bitcoin as it often, unsurprisingly, coincide with a massive rise in the Bitcoin price. The run-up in 2017 was lit by a Halving.
So, when is the next Halving going to occur? The answer is, it just happened. And this is probably the reason why the Bitcoin price is breaking out.
What is the Potential of this New Price Run-Up?
As mentioned before, each new price rise in Bitcoin has led to more than 1,500% gains. Will this occur again? That’s anybody’s guess, but if history is any guide, it can absolutely happen again.
A guy who calls himself PlanB on Twitter (@100trillionUSD) is probably the best and most reliable analysts out there when it comes to modeling the price potential. He has come up with a Stock-to-Flow model which is super correlated with the Bitcoin price. His model indicates that this Halving have the potential to send the price of Bitcoin to $100,000 and even beyond.
So, How Can I Buy Bitcoin?
Back in 2017, buying Bitcoin was hard, risky, costly and time-consuming. You had to have a wallet. You had to have a relationship with a reliable broker (remember, Coinbase was hacked back then). And the fees were enormous.
Now, you can buy Bitcoin in several ways and likely more secure ways. A super easy way is just to use PayPal. Yes, you can actually use PayPal to buy Bitcoin, here’s a guide to buying Bitcoin with PayPal.
You can also use Bitcoin CFDs to buy Bitcoin. CFDs, or Contract for Difference, is a financial instrument that is connected to the price of Bitcoin. You don’t own physical Bitcoin, but you can profit from the rise or fall of the price. So, if you’re interested in taking advantage of the price move, trading it with a CFD product is a cost-efficient way.
Like we have discussed, the Bitcoin Halving along with crazy money printing have set the basis for an explosive price move in Bitcoin. All the right ingredients are in place and now seems like the time to jump on board. This rocket ship can reach $100,000 or even beyond.
Plus500 is a recommended broker for trading Bitcoin CFDs. You can visit https://www.realforexreviews.com/broker-asset/plus500-bitcoin to know more.