Photo by The Bullish Case for Bitcoin: Why $100,000 Could Be in Sight
The past few weeks have been a mixed bag for Bitcoin (BTC), with its price dipping by around 15% in the last 30 days. However, despite this correction, many analysts and industry participants remain unfazed, suggesting a fresh bull run could be just around the corner.
Creditors receiving repayment from Mt. Gox could be a key factor in Bitcoin’s upcoming price rally
One of the optimists is Anthony Scaramucci, a former White House official and a firm proponent of Bitcoin. He believes the asset’s recent retreat resulted from increased selling pressure after the now-defunct crypto exchange Mt. Gox started repaying billions of dollars to its creditors.
A Buying Opportunity?
The Bitcoin Fear and Greed Index has recently entered ‘fear’ territory, which is generally interpreted as a potential buying opportunity. When the index plunges so low, it could suggest that the market is oversold, while the price might have reached its local bottom.
The Bitcoin Fear and Greed Index could be indicating a buying opportunity
After all, the Oracle of Omaha, Warren Buffett, once said that people should be fearful when others are greedy and vice versa. With the index in ‘fear’ territory, many investors might see this as a prime opportunity to get in on the action.
Fundamentals Remain Strong
Scaramucci believes in the asset’s long-term fundamentals, setting a price prediction of $100,000 to be reached before the end of the ongoing year. He noted that the infamous cryptocurrency exchange FTX plans to repay billions of dollars to its harmed investors. Scaramucci thinks that 40% to 50% of those people will hop on the BTC bandwagon after receiving their sums, based on their loyalty to the industry.
A mass accumulation of Bitcoin could leave fewer assets available on the market, making them scarcer and driving up demand
Mass accumulation of Bitcoin would leave fewer assets available on the market, making them scarcer (if demand rises or keeps its current levels). It can also reflect positive market sentiment, triggering additional interest among participants and attracting even more investors.
Conclusion
With the Bitcoin Fear and Greed Index in ‘fear’ territory and the upcoming repayment of billions of dollars to Mt. Gox creditors, the stage could be set for a Bitcoin price rally. Add to this the strong fundamentals and increasing adoption, and a price target of $100,000 by the end of the year might not be as far-fetched as it seems.
