KEY POINTS

  • Bitcoin recently peak just below $50,000 but could go up to three digits soon, says a well-known Twitter account
  • The dominant cryptocurrency may even reach $390,000 if it follows the 2017 price pattern
  • Some users do not agree and argued that $200,000 would be a more reasonable top

Wild price predictions are the norm these days when it comes to Bitcoin, and one forecast is eyeing $390,000 as the peak price of the dominant cryptocurrency during the current bull run.

A chart shared by Twitter user Bitcoin Archive, which documents the latest price milestone and on-chain developments of Bitcoin, showed that the dominant cryptocurrency is poised to reach $390,000 if it repeats the same price pattern observed in 2017.

The rally in 2017 culminated in Bitcoin reaching just below $20,000, which was its highest price until $20,000 was finally breached in December 2020.

One reply said that at the price point of $390,000, Bitcoin will be $2.5 billion shy of gold’s market cap.

“Although I believe one day we’ll match gold’s market cap, I don’t think it will happen on this cycle,” the user said, stating that he finds $200,000 to $250,000 a more reasonable top. 

Talks of price valuations above $200,000 may sound outrageous at the current price point, but it should be remembered that many also did not see Bitcoin reaching almost $50,000. 

Still, some experts think the current bull run is not the same as the one that happened in 2017. The swings in the price of Bitcoin are now smaller than the one experienced in 2017, Bloomberg noted.

One of the reasons cited is the price’s steady increase in 2020. Bitcoin dropped to $3,800 in March 2020 and slowly increased in price within the next nine months. By December, Bitcoin had eclipsed the psychological price resistance at $20,000. 

Another difference is the driver of the price increase. In 2017, retail investors put money into Bitcoin, hoping to cash out soon at a profit. But in 2020, institutional investors and corporations are the top buyers of Bitcoin.

Established institutions like MasssMutual and Guggenheim have put a percentage of their fund into Bitcoin. MicroStrategy and Square, both public companies, also put the cryptocurrency into their reserves. Finally, Tesla invested $1.5 billion into Bitcoin and will soon accept BTC payments for its vehicles.

Bitcoin continues to break records as it creeps towards $50,000 but observers have warned about its volatility Bitcoin continues to break records as it creeps towards $50,000 but observers have warned about its volatility Photo: AFP / NICOLAS TUCAT