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Bitcoin Price Can Reach $160,000 in Current Bull Phase, Asserts Top Exec

Bitcoin Price Can Reach $160,000 in Current Bull Phase, Asserts Top Exec
Photo by Aleksi Räisä on Unsplash

Yerevan (CoinChapter.com) – Bitcoin (BTC) is on its way to possibly hit the $160,000-price benchmark, according to Victor Dergunov, the co-founder of Albright Capital Partners.

The financial executive called Bitcoin an “investment and trading vehicle,” highlighting a flurry of reasons that could push its valuation into the six-figure zone. That included everything from the cryptocurrency’s previous bearish and bullish cycles to the rising money supply in the US owing to the Federal Reserve’s expansionary fiscal policies.

The Pump-Dump-Pump Bitcoin Cycle

Mr. Dergunov pointed out three prominent bullish cycles in the Bitcoin market’s history. Each one of them followed a deeper downtrend followed by trades’ willingness to accumulate Bitcoin to pursue higher levels. In each case, the cryptocurrency’s sell-off trends were smaller than the buy-in ones, confirming that the market’s bullish bias remained intact through its decade-old history.

Read more: Bitcoin Price Recovers on Two Wildly Bullish Announcements; What’s Ahead?

“The first one took Bitcoin’s price from about $2-200, or about 10,000%,” Mr. Dergunov said in his note to clients. “The second wave took the price up from about $50 to roughly $1,200, or approximately 2,300%, and the third wave brought Bitcoin’s price from $200 all the way to over $19,500, or nearly a 10,000% again.”

bitcoin consolidating despite bullish predictions Source: BTCUSD on TradingView.com
Bitcoin is anticipating a bullish break. Source: BTCUSD on TradingView.com

Part of the reason why investors decided to board the Bitcoin bandwagon was their fears of inflation. Easy-money policies adopted by the Federal Reserve prompt investors and traders to seek a reliable hedge. Bitcoin fitted the description for many thanks to fixed supply of 21 million tokens against a “potentially unlimited demand.” That made the cryptocurrency as an anti-inflation asset, earning it a tag of “digital gold.”

M1 Bubble

Mr. Dergunov assessed the current financial climate and emphasizes the 27 percent year-over-year increase in the money supply. He focused on the M1 money supply measurement, which includes currency with the public, demand deposits with the banking system, and other deposits with the Reserve Bank.

The substantial increase in U.S. money supply leads to worldwide repercussions, as the US dollar is the world’s reserve currency, Mr. Dergunov noted.

Read more: Bitcoin Week Ahead Ep03: Key Inflation Figures in Focus

The top executive also focused on the fact that the digital asset market is experiencing an “increased demand” from both individuals and institutions. Bitcoin is becoming a part of institutional portfolios. Financial Giants such as JPMorgan and Citi Bank, adopted crypto, alongside commercial titans like MicroStrategy, Tesla, and Nexon.

Mr. Dergunov showed certainty that Bitcoin’s growing mainstream adoption against the rising M1 supply brightens up its potential to hit $166,000.

Read more: Bitcoin Road to $100K Receives Further Boost From Nexon; $100MM Invested

Dissent

To this day, many experts, analysts, and businessmen are extremely skeptical of cryptocurrencies. Nouriel Roubini, a famous American economist called bitcoin “the mother and father of all bubbles”. Bill Gates, the founder of Microsoft Corporation was less than kind to crypto, saying:

“I do think people get bought into these manias who may not have as much money to spare. So I’m not bullish on Bitcoin. My general thought would be that if you have less money than Elon [Musk], you should probably watch out.”

said the multibillionaire.

Warren Buffet, the chairman of Berkshire Hathaway Inc, and a famous skeptic of Bitcoin warned the public of the risks of investing in crypto. He asserted that the whole notion of a cryptocurrency is valueless. It is based on the premise of finding other people who are willing to buy an otherwise worthless “asset”. Mr. Buffet also stated that Bitcoin has no value as it does not produce anything.

Read more: Warren Buffett Avoids Bitcoin Despite Worrying About “Substantial Inflation”

Only time will tell if Victor Dergunov’s $160,000 Bitcoin prediction pans out. As of the London trading session Tuesday, the token price stands at $55,530.

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Lilit Chichyan

Lilit is an enthusiastic writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Lilit is creative and fast and has the experience of writing for both big marketing companies and small websites and blogs.

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