The toll of Bitcoin (BTC) has quadrupled in the past nine months, which means another similar rally would put $100,000 on the tabular array in the foreseeable future.

The 1-day nautical chart of Bitcoin (Coinbase). Source: TradingView.com

Dan Tapiero, co-founder of 10T Holdings, does not look Bitcoin to striking $100,000 in the side by side nine months. Only, he said that it shows how fast the nugget is growing and its long-term potential. He wrote:

"Remarkable to think that just nine months agone #bitcoin was at 4000. Virtually a 500% rally to today. 500% rally from here puts us at 100k #btc. Don't think it can happen in 9 months but information technology would just be replicating what it's done in past nine months. Hard to grasp a mkt growing so fast."

Why is Bitcoin growing and so fast?

Bitcoin has evolved rapidly throughout 2020 due to 3 factors. First, the reduction in new supply afterward the halving in May has evidently reduced sell pressure level.

Second, the increase in institutional demand has caused the purchase-side pressure for BTC to ascent considerably.

Third, long-fourth dimension BTC holders take continued to express confidence, boosting market place sentiment.

For institutions, the sudden drop of Bitcoin to sub-$four,000 in early 2020 was also a compelling entry point. It was i of the worst-performing assets during the pandemic-induced crash in March, dropping past around 50% to as low as $3,596 on BitMEX.

Since then, Bitcoin has shown resilience and staying power, eventually recovering back to its all-time loftier and reaching a new tape high above $19,982 on Coinbase on Dec. 1.

At the aforementioned time, investors such as MicroStrategy CEO Michael Saylor believe BTC is in a much stronger position now compared with the previous bull cycle. For one, today's retail interest is just a fraction of what it was during peak euphoria in Dec 2017.

Moreover, the increasing perception of Bitcoin as a digital store of value and a must-have in every portfolio has boosted its brand epitome among big investors alongside record institutional inflows. All of this raises the possibility of a six-figure price tag every bit early as adjacent year. Some analysts have even predicted $200,000 and higher by Dec 2021.

"Digital gold"

Since it's frequently dubbed as "digital gilt," one of the strong bull cases for Bitcoin is closing its valuation gap with the precious metal. At $ix trillion, Bitcoin'due south $300 billion market place cap is just iii% of gold. BTC hitting $100,000 would reduce this gap to 23%.

The value of Bitcoin has risen 100% against gold since September, with one BTC at present buying over 10 ounces of aureate. At the same time, analysts have noted record outflows from the gold market in contempo months, some of which have concluded upward in Bitcoin.

BTC, gilt, Southward&P 500 correlation. Source: Cointelegraph Markets, Digital Avails Information

As Cointelegraph reported, the U.S. dollar may weaken farther in 2021, something that has traditionally buoyed both Bitcoin and gold.