- Summary:
- With Bitcoin price having far-outperformed gold, the renewed prospect of the strategic Federal BTC reserve could herald a blastoff.
Bitcoin price hit new all-time highs of $106,553 on Monday, affirming the era of six-figures. The crypto market bellwether has traded above $100k for the last ten days, with investors increasingly convinced that greater institutional adoption could trigger a blastoff. BTC’s recent exploits set the next psychological milestone at $110k, with incremental $110k targets likely to follow.
The cryptocurrency market has seen its market capitalisation grow to a historic $3.71 trillion as of this writing, underlining the huge stake held by the industry in the global economy. For context, only the United States, China, Japan and Germany have GDPs larger than that figure. Also, only Apple has a larger market capitalization than the crypto market.
Could governments adopt Bitcoin to complement gold?
Bitcoin’s latest uptick is fueled by news that incoming US President Donald Trump confirmed plans to set up a strategic Federal BTC reserve. Trump stated over the weekend that the new administration would “do something special” with crypto, emphasizing that it was necessary to stay ahead of China even on that front.
Earlier, Russian President Vladimir Putin cited Bitcoin as an alternative to the US dollar’s dominance; thus, the stakes have risen significantly. With that sentiment, a pullback below the six-figure Bitcoin price mark in the near term is unlikely.
From a pure numbers perspective, Bitcoin has proven its reputation as “digital gold,” with better returns than the yellow metal. As of this writing, BTC price is up by 148% year-to-date, outperforming gold’s return of +28% in the same period.
In addition, the crypto coin has appreciated by 1,490% in the last five years, far outweighing gold’s gains of 79%. The downside to Bitcoin is, of course, its high levels of volatility. However, official adoption by states could alleviate that challenge. In addition, it helps that Bitcoin has a total fixed supply of 21 million coins.
Bitcoin price prediction
Pivot: Bitcoin price pivots at $104,955 and action above that level will signal bullish control. Conversely, moving below the mark will favour the sellers to take control.
Resistance: Immediate resistance is likely to be at $105,675. A break past that mark will clear the path to potentially test $106,000.
Support: BTCUSD is likely to find the first support at $104,850. Breaking below that level will invalidate the upside thesis. Meanwhile, the downward momentum could grow stronger to test $104,030.
