It’s been a wild ride for Bitcoin.
In the past 30 days, this crypto-currency has more than doubled in value.
Many are calling for a pullback — but others are calling for even bigger gains ahead.
In fact, one analyst is predicting that Bitcoin will skyrocket from $4,000 to $100,000.
Today I’ll show you what’s behind Bitcoin’s recent surge…
And then I’ll reveal the factors that could propel it even higher.
What a Month!
On July 17th, Bitcoin traded at about $2,000 per coin.
As I’m writing this on August 16th, it trades at about $4,000.
That’s a 100% increase in just 30 days.
A big move like that (up or down) isn’t unusual for penny stocks…
But for an asset that’s already priced in the thousands of dollars, it’s very unusual.
What caused Bitcoin to rise so quickly?
Let’s take a look…
New Market for Bitcoin
On July 24th, some news came out of the U.S. Commodity Futures Trading Commission.
In case you’re not familiar with it, the CFTC is the agency in charge of regulating trading in commodities, foreign exchange, and as of recently, digital currencies like Bitcoin.
The news it released was huge:
The CFTC decided to allow the trading of Bitcoin options.
As the CFTC reported, this new trading market would be run in conjunction with the Chicago Board Options Exchange (CBOE) — that’s the largest options exchange in the country!
This is a very big deal — here’s why…
A Stamp of Approval
First of all, the stamp of approval from the CFTC and the CBOE added enormous legitimacy to the entire crypto-currency sector — and it especially added credibility to Bitcoin.
Basically, as the credibility of Bitcoin goes up, more people want to own it. And with increased demand, its price goes higher and higher.
But there’s also another reason for Bitcoin’s recent rise:
Now that this new trading market has been officially sanctioned by the CFTC and the CBOE, major institutions like banks and brokerages will be able to trade Bitcoin…
And they’ll also be able to offer trading services to their clients — people like you!
This means that you — and 100 million other individual U.S. investors — will soon be able to log into your accounts at places like TD Ameritrade or Schwab, and you’ll be able to trade Bitcoin options.
Keep in mind: individuals like you control more than $13 trillion in investable assets.
What happens if even a fraction of those dollars enter the Bitcoin market?
Bitcoin’s price would go through the roof!
Bitcoin at $100,000?
Shortly after the announcement from the CFTC, I saw this headline come across my screen:
CNBC: “Bitcoin could hit $100,000 in 10 years”
That might sound insane. But here’s the thing:
The analyst behind the $100,000 price forecast previously predicted that Bitcoin would break $2,000 in the year 2017…
And he made that contrarian forecast back when Bitcoin was trading at about $700 — so perhaps he understands this market better than others.
Here’s his logic for the $100,000 price target:
If Bitcoin’s trading volume continues to grow at its current rate, it’ll eventually make up a significant portion of the $5 trillion global foreign exchange market…
And if that happens, Bitcoin’s market cap could reach about $175 billion…
Which equals a per coin value of $100,000.
Even at its current price of $4,000, that means Bitcoin investors could still be looking at potential gains of 2,500%.
What Should You Do?
Will this analyst’s latest prediction come to pass?
He makes a good argument — but I’m not sure yet.
In case he’s right, I plan to hold onto some of my Bitcoin for the long-term.
But in the short-term, there are sure to be major price moves — up and down.
This creates trading opportunities to make big profits, fast.
That’s why I’ve got some “dry powder” ready to go…
And that’s why you should too!
Happy Investing
Best Regards,
Founder
Crowdability.com
