How realistic is it that a majority of Bitcoin investors are aiming for a $100,000 BTC price by the end of 2021?
Bitcoin (BTC) investors are known for being bullish, and even during 50% corrections like the current one, most analysts remain optimistic. One reason for investors' endless optimism and belief in infinite upside could be BTC's decreasing issuance and the 21 million coins fixed supply limit.
However, not even the most accurate models, including the stock-to-flow (S2F) from analyst Plan B, can predict bear markets, crashes, or FOMO-induced (fear of missing out) pumps. Traders usually misinterpret these concepts as value and price expectations can be easily mistaken.
Bitcoin does not exist in a vacuum, even if BTC maximalists think so. Therefore, its price action heavily depends on how many dollars, euros, and yuans are in circulation and interest rates, real estate, equities, and commodities. Even global economic growth and inflationary expectations impact the risk appetite for people, companies, and mutual funds.
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