Is Bitcoin’s Surge Legitimate? Analyst Cites 2021 and Predicts New ATH…
An analyst has suggested that when the inflation-adjusted all-time high (ATH) level of Bitcoin in 2021 is taken into account, its new ATH level in 2024 would be around $83,000.
Bitcoin, the leading cryptocurrency, achieved record-breaking highs earlier this year, propelled by the approval of spot Bitcoin exchange-traded funds (ETFs). The price reached $73,500 in March before the halving event.
Following the new ATH, Bitcoin experienced a downtrend and dropped below $50,000 during a significant correction in August.
However, Bitcoin has since recovered and has mostly fluctuated between $57,000 and $60,000 in September. It has not fallen below the $60,000 mark after the Federal Reserve’s interest rate cut.
Although Bitcoin is currently around $10,000 below its previous ATH level, expectations for a new record have grown due to recent bullish momentum.
But even if Bitcoin achieves its long-term target of $100,000, it may fall short of previous cycles in terms of real value and fail to meet expectations.
Analyst Luke Broyles made an intriguing prediction about the Bitcoin price in a recent post, suggesting that the new ATH of around $100,000 may not be as impressive as it seems once inflation is taken into account.
Broyles compared the current situation to Bitcoin’s ATH of $69,000 in 2021 and the inflation data at that time. He argued that when the ATH level in 2021 is adjusted for inflation, the new ATH level in 2024 would be $83,000.
Highlighting that Bitcoin’s peak of $69,000 in 2021 is equivalent to $83,000 under current conditions when adjusted for inflation, Broyles stated, “Even if Bitcoin reaches $100,000 by 2025, its purchasing power will diminish in the next 6-18 months due to monetary expansion. Therefore, Bitcoin reaching $100,000 in 2025 will not really take it to $100,000; it will only bring it back to 2021 prices.”
“It’s quite astonishing when you consider the disparity between nominal and real values. $100,000 in 2025 is equivalent to $69,000 in 2021…”
Bitcoin is making a strong surge, reaching $65,000. However, when adjusted for inflation, the 2021 ATH is $83,000. With the next round of monetary expansion in the next 6-18 months, it could reach $95,000. A nominal price of $100,000 for Bitcoin in 2025 would barely bring us to 2021 levels.
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— Luke Broyles (@luke_broyles) September 23, 2024
*This is not investment advice.
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