Bitcoin experts believe that BTC price is highly undervalued considering the increasing FOMO of companies and institutions. It has been at the center of attention ever since its price started to surge reaching near its previous all-time-high (ATH). The bull run started towards the end of October when the price of the flagship cryptocurrency was struggling to move past the major resistance of $13,000, and once it set to do that the rally soared past $19,700 with little to no resistance level.
Retail traders carried the 2017 price rally while institutional players kept their safe distance citing risky volatility and less maturity as an asset. However, after 4 years that perspective has changed extremely and the same critics now look to be convinced that Bitcoin will be the main currency in the future. Most of the financial giants and asset management companies like JP Morgan and BlackRock who once called bitcoin a Ponzi scheme appear to have changed their minds and now believe Bitcoin could replace Gold due to its technical superiority. BlackRock CEO Laurence D. Fink who once said bitcoin is a money-laundering tool now believe it could well transform into a global market. He has stated,
“Bitcoin has caught the attention and the imagination of many people. We look at it as something that is real. Can it evolve into a global market? Possibly.”
PayPal started providing buying and selling of bitcoin along with 3 other cryptocurrencies, opening the gates to its 283 million clients and many believe the decision by the payment processing giant triggered the recent price rally.
Additionally, MicroStrategy, a software giant decided to convert a portion of its treasury into Bitcoin back in August and they adopted nearly $500 million worth of Bitcoin in a series of purchases. However, the business solution provider looks to have realized the true potential of it and recently raised another $650 million through debt security offering for adopting more bitcoin. MicroStrategy now owns over $1 billion worth of bitcoin on their sheets and they are not the only ones. In fact, more than 10 public firms own bitcoin on their sheets.
BTC’s demand in the present market is too high and easily overshadows the supply as financial giants are buying more bitcoin than being produced daily by the miners. However, the price of bitcoin does not really reflect the increasing demand now, this is the reason many experts believe that Bitcoin is highly underpriced at the moment. A Citibank analyst has predicted bitcoin price to rise past $300K by the end of next year.
Alaster Milne, a popular Bitcoin investor, and analyst said,
“Grayscale buying >100% of mined supply, MicroStrategy buying, Square users buying, hedge funds buying, PayPal users buying…. … and the #Bitcoin price isn’t at all-time highs?”
Plan B another popular bitcoin proponent famous for his stock-to-flow charts has estimated a 5-figure price within 2 years of the halving and looking at the current increasing institutional FOMO the price figure looks quite possible. The analyst has claimed that the BTC supply shortage would soon hit the market and the price would face a major uptick once we go past the $20,000 mark. Plan B in his latest tweet quoted Satoshi Nakamoto, the pseudo-anonymous founder about how BTC if made sense to enough people would turn into a “self-fulfilling prophecy.” He confirms that the current Bitcoin price is highly undervalued.