BTC has been in an uptrend since February 2019. Cryptoassets started the year with three flat months followed by a strong uptrend until the end of June when the Bloomberg Galaxy Crypto Index (GBCI) peaked. The peak in the index this year was on June 26th at 668.61. You can see the clear decline since the Peak in June.
Bitcoin was as high as 90% of the market cap of all cryptos at the beginning of 2017 to as low as 32% at the top of the market. Part of the difference is that there are now nearly 2000 cryptocurrencies. So the number keeps going up even though the market cap goes down. BTC is now at 69.7 and the top 5 are 85% of the market cap.
BTC protocol will only allow half as many new coins produced in each cycle. The average block generation time is about 9 min and 20 seconds. Right now, 12.5 BTC are mined in each cycle, but on May 27, 2020, that will drop to 6.25 coins per cycle. This means the supply of new coins will drop at the time when institutions will be wanting them more. BTC usually rises about 200% in the year prior to a halving, however, I would expect the rise to be much greater in a roaring bull market which is possible for 2019-2020.
Institutions want to own BTC. They see it as a totally uncorrelated asset. So, when it’s possible I expect them to put 2-4% of their assets into cryptocurrencies. That could give cryptos a market cap of $3-5 trillion. And if BTC remains at least 50%, it translates into at least one more very big move in cryptos.
Thus from our Elliot Waves, we can see that BTCUSD completed 5 Waves of an uptrend and made a strong and significant bounce after correctional waves ABC. Bounce also happened right on 0.618 Fib Lvl with RSI divergence - both of these signs support our view that BTCUSD possibly enters into a new 5 Waves - that should bring us back to All-Time High.
If BTC continues to be at least 40% of the total crypto market cap, then its price will go up to more than $100,000 – but perhaps $500,000 is more realistic. The Winklevoss Twins who own more than a billion dollars’ worth of BTC say they wouldn’t sell even if it were to hit $350,000 per coin.
Bitcoin was as high as 90% of the market cap of all cryptos at the beginning of 2017 to as low as 32% at the top of the market. Part of the difference is that there are now nearly 2000 cryptocurrencies. So the number keeps going up even though the market cap goes down. BTC is now at 69.7 and the top 5 are 85% of the market cap.
BTC protocol will only allow half as many new coins produced in each cycle. The average block generation time is about 9 min and 20 seconds. Right now, 12.5 BTC are mined in each cycle, but on May 27, 2020, that will drop to 6.25 coins per cycle. This means the supply of new coins will drop at the time when institutions will be wanting them more. BTC usually rises about 200% in the year prior to a halving, however, I would expect the rise to be much greater in a roaring bull market which is possible for 2019-2020.
Institutions want to own BTC. They see it as a totally uncorrelated asset. So, when it’s possible I expect them to put 2-4% of their assets into cryptocurrencies. That could give cryptos a market cap of $3-5 trillion. And if BTC remains at least 50%, it translates into at least one more very big move in cryptos.
Thus from our Elliot Waves, we can see that BTCUSD completed 5 Waves of an uptrend and made a strong and significant bounce after correctional waves ABC. Bounce also happened right on 0.618 Fib Lvl with RSI divergence - both of these signs support our view that BTCUSD possibly enters into a new 5 Waves - that should bring us back to All-Time High.
If BTC continues to be at least 40% of the total crypto market cap, then its price will go up to more than $100,000 – but perhaps $500,000 is more realistic. The Winklevoss Twins who own more than a billion dollars’ worth of BTC say they wouldn’t sell even if it were to hit $350,000 per coin.