According to market experts and analysts, there is a big barrier at $20,000 which is stopping Bitcoin to claim a $1Trillion market cap.
Since the beginning of 2020, the price value of the world’s leading asset has doubled thanks to institutional investment in the space. This week, the market capitalization of flagship cryptocurrency has exceeded the value noticed at the time of the great bull run in 2017.
$20k is a Hurdle in $1Trillion Path
After surging by nearly 50% this month, the top coin is close to overturning the all-time high of $20k. Bitcoin-inspired analysts are making out new speculations and predictions if the price exceeds $20,000. One analyst even goes further in his analysis and predicts a one trillion market cap for it. According to Mike McGlone, the senior strategist at Bloomberg Intelligence:
“$20,000 bitcoin is [the] primary hurdle toward [a] $1 trillion market cap. The digital version of #gold but with more-limited supply and a history of adding zeros, appears to be in an early price-discovery stage and may simply continue its ascent in 2021.”
McGlone hopes that “mainstream adoption is coming.” Bitcoin has already captured the attention of mainstream media and Wall Street companies and firms. The situation of competition between Bitcoin and other top world companies has started. JP Morgan, which is the largest bank in the world, has its market cap close to Bitcoin. Recently, the BTC cap overturned JP Morgan for time and achieved another big success in the Wall Street space.
Some people are even more bullish and believe the price would easily claim $20,000 this week. Peter Smith, chief executive of Blockchain.com, said the major bullish thing for him is the rising market cap of the primary cryptocurrency to an all-time high value.
Masses are busy accumulating Bitcoin because they think fiat will become vulnerable to a situation of high inflation. According to Alex Mashinsky, CEO of Celsius Network, the flagship cryptocurrency has reached a “place where institutional investors, banks, and family offices are legitimately pondering involvement as a defense against currency devaluation.”
So, there are strong fundamental factors that show Bitcoin would reach a market cap of $1 Trillion.