Despite the recent price drop in the market, analysts remain bullish about the future of the largest virtual currency in the market. Nicholas Merten, the founder of DataDash, considers that Bitcoin (BTC) could eventually reach a price of $200,000 per coin in this current cycle. He said this during a recent episode of DataDash.
Could Bitcoin Reach $200,000?
The entire crypto market is bullish about the future of the industry. However, the difficult thing is understanding when Bitcoin is going to surpass previous all-time highs and eventually move to new and fresh highs.
Nicholas Mertens believes Bitcoin price could reach $200,000. He considers that the total market capitalization of cryptocurrencies is definitely low compared to the rest of the global markets. Thus, this could allow Bitcoin and other virtual currencies to expand.
He mentioned that the global real estate market is worth hundreds of trillions of dollars and that treasury markets are also worth tens of trillions of dollars. Bonds and equities have a valuation of over a hundred trillions of dollars.
Furthermore, he stated that Bitcoin could eventually reach $200,000 due to the way the digital currency works. There are only 21 million coins to supply the demand of the entire planet. Mertens believes that halving events play also an important role in helping Bitcoin increase its price. Surprisingly, he has also mentioned the Stock-to-Flow model, popularized by the Twitter user and analyst PlanB.
Nicholas Mertens commented about Bitcoin:
“If we look at the last cycle from the stock to flow, what we’ll realize is that after the halving initiated back here in the summer of 2016, as the fair value of Bitcoin actually went up into July of 2017, this is basically where the market should have topped it, around $5,000.”
He went on saying that he believes that Bitcoin could possibly move beyond $100,000 and getting closer to $150,000 or even $200,000. This is clearly a very large price considering Bitcoin could still grow by over 900% in a bull market.
At the time of writing this article, Bitcoin is being traded at $10,285 and it has a market capitalization of $190 billion. In the last few days, Bitcoin has been traded above $10,000 but it couldn’t make it towards $11,000 and remain above that level for a longer period of time.
