Cryptocurrency analytics firm 10x Research projected Bitcoin (CRYPTO: BTC) to reach the $100,000 price milestone early next year
What happened: In its latest video, the firm explained the rationale behind the bullish prediction.
The leading cryptocurrency came within touching distance of vanquishing its all-time high of $73,737 last week, hitting a new six-week high in the process.
Analysts at 10x Research said that such occurrences have historically preceded a median return of 40% over the next three months.
Keeping the reference price at $72,000-$72,500, a 40% jump would indeed catapult Bitcoin to over $100,000.
However, since these estimates, Bitcoin has fallen dramatically, reaching as low as $67,600 over the weekend.
Additionally, the analysts drew attention to the "Bitcoin black hole effect," which describes how Bitcoin's dominance and attention rise with each cycle, as well as the value it draws away from altcoins.
Bitcoin's thesis as a safe haven asset was also drawn attention to, as conviction in its long-term value prompted institutional giants like BlackRock to stock up the cryptocurrency. The firm's iShares Bitcoin Trust ETF (NASDAQ:IBIT) was the biggest Bitcoin fund as of this writing, with assets worth over $26 billion, as per SoSo Value.
Overall, ETFs gobbled over $4 billion in Bitcoin in October, reflecting high institutional demand.
Analysts also saw a high possibility of Bitcoin development company MicroStrategy Inc. (NASDAQ:MSTR) getting added to the blue-chip S&P 500 index, paving the way for a spike in the stock's value.
Moreover, a change in accounting rules, allowing companies to report their cryptocurrency holdings at fair value, could encourage more companies to add Bitcoin on their balance sheets, 10x Research said.
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Why It Matters: The price projection aligned with Matt Hougan, Chief Investment Officer of cryptocurrency fund manager Bitwise, who said that the apex cryptocurrency could surpass $100,000 in early 2025 on rising institutional adoption and increasing ETF flows.
Global investment bank Standard Chartered had earlier projected Bitcoin to breach $73,000 on Nov. 4 election day and beyond $80,000 if Donald Trump secures victory.
Price Action: At the time of writing, Bitcoin was exchanging hands at $69,090.54, up 2.10% in the last 24 hours, according to data from Benzinga Pro.
Photo courtesy: Unsplash
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