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We all remember the good times of 2017. Bitcoin reached its peak price of $19,783 on December 17. Overnight, many people turned into millionaires, demonstrating the life-transforming power of internet money. Following the trend of hodlers and other indicators, we may be entering another BTC bull run.
Bitcoin’s Upward Trajectory
Any BTC hodler will know by heart a long-view BTC projection chart in some form or another. Despite Bitcoin’s reputation of volatility, its trajectory is clearly moving upwards. Legendary John McAfee of the eponymous anti-virus software, initially predicted it is inevitable for BTC to reach $1,000,000. Later, he retracted it, calling his own forecast “absurd”.
“If Bitcoin ever hit $1 mil, its market cap would be greater than the GDP of the entire North American Continent.”
Moreover, McAfee disparaged BTC as being low-tech compared to other newer cryptocurrencies. It certainly seems that BTC has been stripped of cryptocurrency’s main feature – financial privacy – compared to the likes of Monero (XMR).
However, Bitcoin (BTC) has become synonymous with cryptocurrency, with the largest market cap and setting the trend for all other altcoins. Capturing the majority of headlines, BTC serves as a magnet for crypto newcomers, retail and institutional investors. This is why BTC’s long-term projection chart looks as such:
Another BTC Bull Run to Surpass 2017’s Peak?
Courtesy of Fidelity’s recent BTC report, we’ve gained a greater insight into forces driving BTC forward. Most importantly, the role of social media in attracting retail investors to BTC. Combined with economic woes resulting from governments shutting down economic activity, BTC insinuated itself in the minds of many as digital gold, with the potential to ride out the storm.
Accordingly, Bitcoin sentiment grows positive across all major communication platforms. We can see this through the following chart:
Bear in mind, this is despite another major crypto exchange hack (KuCoin) and the crackdown of CFTC and the Department of Justice on one of the biggest exchanges, BitMEX. In other words, the BTC sentiment is so high that it remains undisturbed from events that would’ve caused a price drop in previous years.
As far as the sentiment of cryptocurrency insiders and CEOs goes, the average sentiment is that BTC should surpass just above $14k at the end of the year.
Does Investor Activity Match Bitcoin’s Sentiment?
According to eToro crypto analyst, David Derhy, more people should take the hodler stance:
“Bitcoin is currently trading around the important support level of $10K. While Bitcoin maintains this level, investors should consider holding, as we’re still early in this technology and adoption is growing. I’d expect to see another bull run on crypto prices”.
This aligns with the rise of BTC’s on-chain volume, combined with the decrease of BTCs held on crypto exchanges. The latter is not bad news, but it signifies BTC accumulation, mirroring the previous bull run that happened just before the 2017’s price peak.
The CEO of NDAX Inc., Bilal Hammoud, sums up the institutional activity around BTC. He holds the view that BTC will reach $150k by 2025.
“Major countries, banks and corporations are starting to invest heavily into Bitcoin as a safe haven and store of value. This trend will only accelerate in the next couple years as we approach the next halving. With only 3M liquid bitcoins, demand will continue to outperform supply and price will adjust accordingly,”
Of course, the explosive blowout of DeFi has also significantly contributed to the hype and institutional interest. DeFi’s current market cap sits at nearly $11 billion.
Just Wrapped BTC, as the dominant form of BTC tokenization circulating the Ethereum network, account for over $1.1 billion value locked into the DeFi space and its yield farming. Overall, DeFi’s daily traffic amounts to an impressive $300 million worth of tokens.
Can BTC Overcome Historic Trends?
While it is true that current important indicators mirror BTC’s 2017 bull run, it is also true that BTC couldn’t break the $12k wall three times this year. In all cases, whales and miners played a big role in keeping BTC from skyrocketing.
It may be the case that the CFTC’s recent crackdown on BitMEX exchanges is a sign of things to come. After all, President Trump made it clear that he doesn’t like Bitcoin one bit. Although his sentiments tend to diverge from the sentiments of the federal apparatus, this time it aligns with the Federal Reserve’s own attitude, alongside the establishment of CBDCs.
This “futuring” of the dollar may sway the masses as it offers the comfort of legal security and integration into the existing financial infrastructure. However, people’s trust in the institutions continues to wane, which could secure BTCs permanent position as a viable alternative to central planning.
What are your thoughts on a Bitcoin bull run in the near future? Let us know in the comments section below.