Bitcoin (BTC) on track for $100K target as crypto market on track to hit $5T, says FundStrat
Increased corporate participation could fuel Bitcoin's rise.
Tue, 04 May 2021, 06:36 am UTC
Bitcoin, which saw a massive correction last month after setting a new all-time high, has rebounded and traded at $56,077 as of writing based on Coinmarketcap data. However, a research firm believes that BTC still has room to grow and that the crypto’s price could go as high as $100,000 per coin.
Bitcoin’s price has been on a roller coaster ride last month. After setting a new ATH above $64,000, the crypto suddenly plunged to around $47,500 worrying a lot of investors.
However, research firm FundStrat is not too concerned over the correction. “We’ve seen the price of Bitcoin retrace a little over ~25%, which would qualify as a major correction for traditional markets but is par for the course in crypto during bull market cycles,” the firm wrote on a note released last week.
The firm based its optimism on the crypto’s price history. “While we’re not technical traders, Bitcoin falling below its 50 day gives us less concern given this has happened several times during the prior bull market cycle, and it’s the 200 day that Bitcoin has historically maintained during prior bull runs,” FundStrat added.
FundStrat also confirmed its previous price target for Bitcoin adding that increased corporate participation could be the catalyst that could trigger its rally. “We believe the bull market remains intact, and we are maintaining our $100k Bitcoin price target… Even if Facebook didn’t buy Bitcoin, corporates are coming, and it may not be reflected in earnings announcements yet,” the firm noted.
Publicly-listed companies have started to accumulate BTC last year as a hedge against inflation. For instance, MicroStrategy, Tesla, Galaxy Digital, Mass Mutual, Marathon Patent, and Square 4,709 BTC are now for their sizable Bitcoin holdings.
The research firms more companies joining the fray and some might have already bought the crypto but have not yet made it public. “Even if we back out buys and sell from Tesla, MicroStrategy, and other corporate, we think this says that more corporates bought crypto this quarter than has been announced unless Tesla is day trading its position, which we think is unlikely given corporates tend to be longer-term holders,” FundStrat said. “We think announcements from other corporations in the weeks to come could offer catalysts for the market.”
Aside from Bitcoin, FundStrat also expects Ether (ETH) to soar as high as $10,500. Meanwhile, the research firm said that the entire crypto market capitalization could hit $5 trillion.
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