Top 10 Reasons That Will Drive the Bitcoin Price to $100K in the Coming Months
Sorry Bears, the Bull Market is far from over.
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The price of Bitcoin continues to rebound after breaking the psychological barrier of $30K in the middle of July 2021. At the time of writing, the price of Bitcoin is even approaching $40K. However, there is nothing to say that we are out of the woods and that Bitcoin will break through the $40K barrier again this summer and then go after the $50K barrier.
There is a lot of resistance to be broken before then. The areas to watch are around $41K, then $46K.
As you can see, we are not there yet. However, it seems inevitable to me that the price of Bitcoin will start to climb back towards $100K. It may not happen until late summer, but it will happen in my eyes.
Regardless of those who were predicting a Bear Market, the Bitcoin Bull Market is still alive and well. Those who have seized the great opportunity will probably be described as lucky when the price of Bitcoin reaches $100K. It won't. With Bitcoin, everyone pays the price for BTC that it simply deserves.
Of the reasons why I have what some might call excessive optimism, I'll give you the top 10 in what follows.
The adoption of Bitcoin by countries
As of September 1, 2021, Bitcoin will be an official currency in El Salvador. President Nayib Bukele has made a bold decision that will be seen as great in the future. His country was previously stuck in the dollar system with no hope for a better future.
So the president of El Salvador decided to change the future history of his country through Bitcoin.
Hundreds of thousands of people in El Salvador will have overnight access to basic banking services. This is something that will change their lives and allow them to believe in a better future again.
El Salvador doesn't plan to stop there as the president wants his country to use the energy from its volcanoes to mine Bitcoin in a greener way. This is something extremely positive that will push many countries to do the same in the coming months and years.
No matter how much the IMF and the US threaten these countries, I think they will resist because Bitcoin offers them an opportunity that the current system will never give them. The big question on everyone's mind now is which country will follow El Salvador's lead next.
China's ban on Bitcoin
China's ban on Bitcoin sent many investors into a panic that Bitcoin could not recover from such a decision. As always, Bitcoin has shown its phenomenal resilience.
After a big drop in May and June 2021, the Bitcoin Hash Rate is already rebounding strongly:
We are witnessing a great exodus of Bitcoin mining from China to the West which will benefit the Bitcoin system as a whole. Indeed, this has already increased the decentralization of the hash power of the Bitcoin network.
Besides, it will positively address the concerns of some about the environmental impact of Bitcoin. The official reason why Elon Musk ended support for Bitcoin payments for Tesla cars in May 2021 is already no longer valid.
Bitcoin's share of electricity from renewable energy sources exceeds 50%
Now that China is out of the picture, new opportunities will arise for companies wishing to mine Bitcoin in a greener way. The Bitcoin Mining Council was formed in North America to address investor concerns about ESG (Environmental, Social, and Governance) issues with Bitcoin.
The latest estimates put the share of electricity from renewable energy at over 50% for the Bitcoin network. The figure is 56%.
So when it comes to ESG, you have to go beyond FUD (Fear, Uncertainty, and Doubt) and focus on the facts. If you do, you'll see that Bitcoin's ESG score is already excellent. There is still room for improvement, but Bitcoin is already far ahead in this area.
Everything that has happened in the last few weeks has allowed the Bitcoin community to take the issue head-on by responding to the fallacious arguments of Bitcoin's opponents. This is extremely positive for the future of Bitcoin.
Tech giants to jump on the Bitcoin bandwagon sooner or later
Jack Dorsey, the CEO of Twitter, but also of Square, is a strong advocate of Bitcoin. He recently announced the creation of a new company seeking to make DeFi based on the Bitcoin network. All openly and transparently to respect the spirit of Bitcoin.
Jack Dorsey is for me the hero that Bitcoin deserves. We need to stop giving too much importance to Elon Musk and follow those who want to advance Bitcoin and its ecosystem.
For Jack Dorsey, Bitcoin will also be an important part of Twitter's future. New features will be launched in the coming months and years that take advantage of the Bitcoin system.
Other tech giants will eventually jump on board with Bitcoin. This may be through integrating Bitcoin into their cash reserves management strategy, or it may be through integrating Bitcoin as a payment method for example.
In both areas, there has been a lot of talks lately about Apple adding Bitcoin to its balance sheet and Amazon eventually supporting Bitcoin as a payment method. These are still only insistent rumors, but it will happen sooner or later in my opinion.
The Lightning Network continues to grow
The Lightning Network is a second-layer technology that sits on top of the Bitcoin blockchain. This protocol uses payment channels to make Bitcoin micropayments efficient. The Lightning Network makes the Bitcoin network virtually infinitely scalable.
Transactions made on the Lightning Network are faster, more expensive, and more quickly confirmed than those made on the Bitcoin blockchain.
The Lightning Network is referred to as off-chain transactions. This protocol was created to relieve congestion on the main network. The future of Bitcoin's use as a means of payment in everyday life is through the Lightning Network.
The good news is that the Lightning Network continues to grow. The milestone of 10,000 active nodes was reached in April 2021. As of the end of July 2021, the number of active nodes on the network is over 13,000:
This is something Bullish because it is what will increase the use of Bitcoin in the coming months and years around the world.
Institutional investor demand for Bitcoin
Institutional investor demand had been a major driver for Bitcoin's bullish rally that began in October 2020. This has calmed down since the All-Time High reached close to $65K in April 2021.
This trend is expected to resume in the coming months.
More than 10 applications for the creation of Bitcoin ETFs have been filed in the US. This is proof of a real craze. Besides, we can see that more and more banks are now offering Bitcoin to their customers.
These American banks, which have long been opposed to Bitcoin, are finally coming to terms with the fact that the Bitcoin revolution will take everything in its path. Those who refuse to adapt will eventually be left behind.
Billionaires endorsing Bitcoin
Bitcoin is the people's currency backed by the people. Many people seem to resent the fact that billionaires come to buy Bitcoin to take advantage of the incredible guarantees it has to offer.
However, the billionaires who buy Bitcoin are simply following the obvious logic that I keep saying: the success of Bitcoin is inevitable. De facto, we need to position ourselves to benefit from this incredible monetary revolution in the years to come.
Since Paul Tudor Jones officially took a stand in favor of Bitcoin in May 2021, he has been followed by many other billionaires. Among the latest is Ray Dalio, who has admitted to owning Bitcoin. This is especially interesting because Ray Dalio has long been a staunch opponent of Bitcoin.
The guarantees that Bitcoin gives are essential in a world as uncertain as ours. The great monetary inflation we have been experiencing since March 2020 has highlighted the benefits of a system like Bitcoin more than ever.
Superior monetary attributes that offer incredible guarantees
Bitcoin relies on Blockchain technology to give credibility to its monetary attributes which makes it a true monetary revolution. When you buy Bitcoin, you have essential guarantees:
A hard-capped supply at 21 million units no matter what.
A programmatic monetary policy that protects you from the arbitrariness of humans and their natural inclination to corruption.
When you buy 1 BTC, you are guaranteed to own 1 BTC out of 21 million in 10, 20, or 50 years. This is something essential as the American dollar system shows us endless inflation that keeps impoverishing the most people.
By buying Bitcoin, you are opting for a system that is more protective of its users.
The macroeconomic environment remains extremely favorable to Bitcoin
The ultra-aggressive monetary policies pursued by the central banks of the major economies to combat the effects of COVID-19 on the economy have highlighted the benefits of the Bitcoin system more than ever.
Bitcoin brings back to light the virtues of quantitative hardening. This is in contrast to the quantitative easing that the Fed and the European Central Bank have been practicing unreasonably for years.
This possibility given to central banks to print as much fiat money out of thin air as they deem necessary is the original sin of a system that will end up collapsing sooner or later.
While the Fed has been denying the obvious for months, it is finally starting to acknowledge that inflation will be a problem in the months ahead. It has reached 5.4% in June 2021 in America, and for many observers, including the CEO of BlackRock, the problem is systemic.
This inflation will remain at high levels for a long time. This will benefit Bitcoin as a safe haven to protect what you own. More and more investors will come to seize this opportunity in this macroeconomic environment that clearly favors Bitcoin.
The resilience of the Bitcoin system
The final point that often comes up in the mouths of institutional investors when they finally give in to the Bitcoin revolution is the incredible resilience of the Bitcoin system. Many say they are impressed that Bitcoin is still in business more than 12 years after its inception.
What is most incredible is that Bitcoin has always risen stronger from all the trials it has faced.
No matter what happens, Bitcoin continues to operate block after block according to the rules implemented by Satoshi Nakamoto in his source code. This is something that commands respect and gives reassurance to all those who doubted Bitcoin in its early days.
There is no doubt that Bitcoin will be around for many years to come.
Final Thoughts
The Bitcoin Bull Market that started in October 2020 is still not over in my eyes. I'm not the only one who thinks this. Many Bitcoiners have the same feeling as I do when studying the on-chain and technical data. The crash in May 2021 is just a pause before the price of Bitcoin starts to rise again in the coming weeks.
The $100K mark will be reached in the coming months. Some will be surprised, but this will only be the result of all the positive things I have described above that will continue to accumulate once the fear leaves the Bitcoin market.
Those who take the long view will be greatly rewarded.
Some reading
For Entrepreneurs — The Netflix Co-Founder Advises You Not To Look for Answers in Books - It is only a tool that will help you, but it will never replace practice.
Stop Constantly Looking for New Ideas, Just Learn To Recognize Them When They Arise - Stephen King has successfully applied this strategy for several decades.
Obsessed With the Daily Price of Bitcoin? Here’s Why It’s Totally Counterproductive and Unnecessary - This is as useless as watching the price of your house every day.
Boost Your Emotional Well-Being by Applying These 7 Practices Daily - You must do everything possible to protect your emotional well-being.
Bitcoin Is Not a Fiat Currency Competitor but Rather a Revolution in Your Very Relationship With Money - Bitcoin will become the money of the Internet.
Unpopular Opinion: Your Work Will Never Make You Rich. It’s how you invest the fruits of your labor that will make all the difference.
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