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Speculation as to the future of Bitcoin (BTC) continues to run rampant. There are extremes on both sides of the fence. The dreamers believe that value of BTC could be endless. The doubters have the entire industry fading away.
The most recent discussion revolves around Morgan Creek CEO Mark Yusko and crypto trader Peter Brandt. Both crypto advocates suggested that BTC could reach $100,000 in the long term. If that is ever going to be the case, consistent accumulation of BTC has to take place. A recent post on www.cointelegraph.com by Joseph Young suggests that $90 million worth of BTC would need to be absorbed. It would need to be absorbed every day.
Clarifying the situation even further is options trader Theta Seek. The contention is that stabilizing BTC at the $100,000 price point would require a daily investment of $90 million.
The next question has to be, is that even possible? The $90 million dollar figure relates to the total amount of BTC that can be mined in a day. Following the 2020 halving, miners can generate up to 900 BTC per day.
If the price of BTC would hit the $100,000, that 900 BTC would equal the $90 million figure. Miners tend to sell what they mine on a weekly basis to cover operational costs. This means that if BTC reached $100,000, the 900 BTC mined daily at a value of $90,000 is feasible. The options trader Seek added the following comment:
“At 100K per BTC, the market has to absorb a miner supply of $90 million USD daily. Assuming that there are 10 million people worldwide buying BTC on a regular basis. It would cost them $9 daily to sustain those price levels. I’ve met people who spend more than $9 on coffee.”
“Data suggests otherwise though. HODL-ers throughout the past 3 ATH’s have not been selling in significant portions. 60% of BTC has not moved for more than 2 years. Even if that were to be true, the long time supply of BTC will eventually equal the mining (new) supply.”
Market data from Glassnode notes that hodlers have been constantly accumulating BTC. Especially when the price dropped to a low of $3,600 earlier this year.
Bitcoin has made some progress in becoming recognized as a store of value similar to gold. JP Morgan reportedly became the first bank to open accounts for crypto exchanges. Grayscale experienced record institutional activity in the first quarter of this year.
The current trading price of BTC on the board at ArmyOfBitcoin.com is just below $9,700 in Tuesday’s market. This represents a slight 0.7% gain.