One well-known conservative crypto analyst offered a bullish comment on the Bitcoin price. A YouTuber claims that the price of Bitcoin will rise to $1 million if there is more of it.
You can watch a video on YouTube. InvestAnswersBTC’s diminishing returns are being signaled. A declining return refers to an asset that has a lower future profit margin than its previous investment. According to the crypto analyst, BTC gives investors five times more profit in each market cycle than it did during the last one.
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Bitcoin primed to trade for millions of dollars by the year 2030
Analysts had a completely different opinion on bitcoin, which was contrary to the perceived diminishing returns of this digital asset. They cited that the value of networks grows as the number of participants increases, according to Metcalfe’s law.
If Bitcoin follows the trend of disruptive networks like cellphones and the internet, applying Metcalfe’s law projects a bullish case scenario for bitcoin. In that vein, a modest consideration of BTC’s future price will put it at over a million dollars by the year 2030.
The host made it clear that this prediction was strictly based on the scientific possibility that Metcalfe’s law holds for the number one cryptocurrency in the world. However, it is not based on wishful thinking. Source: BTCUSD price chart from TradingView.com According to the analyst, the bitcoin digital assets’ adoption follows the historical patterns of preceding technologies.
Quite like InvestAnswers, there have been several sightings of multiple users across the internet, supporting the future appreciation of bitcoin’s price.
Crypto Market Cycles
Many people are excited about the next cycle of market cycles, since bitcoin speculation still points to a bullish future.
The market cycleExplain.Markets’ ebbs and flows. Markets that are new usually start slowly. These markets usually start from low or zero interest. However, as the interest grows in the asset, so does demand. As a result, its price begins to rise. An entire market cycle includes four phases: acquisition, markup and distribution.
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The commodity’s price rises due to increasing interest. It eventually hits its peak. The returns are enough to satisfy investors. Then, they decide to sell the asset. This creates tremendous selling pressure. Thus, the market price drops. The next market cycle will begin shortly after the first one ends.
Bitcoin Price Action
Bitcoin prices ranged from $22,000 to $18,000 during the majority of the 3rd Quarter of 2018. As a way to invest in risky assets such as bitcoin, investors are closely watching the market.
Featured image taken from Pixabay. Chart from TradingView.com