Demand Drives Bitcoin Price to $130,000

My data accurately predicted when Bitcoin would decline in 2021. Today, that indicates Bitcoin will surge to $130,000 or even higher.
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In any market, be it fruits and vegetables or financial assets, prices are determined by the intersection of supply and demand.

If tomatoes become scarce due to a flood, with the same demand, the price at the supermarket will inevitably be higher — just as it will be higher if, with the same supply, twice as many people want to buy tomatoes.< /p>
In the financial market, if the supply is unlimited, the price is not changed by demand, as in the case, for example, of a mutual fund.

Related: Don't Be Naive: BlackRock ETF Won't Be Bullish on Bitcoin

If more subscribers wish to buy this fund, more shares are simply issued at what is known as the net asset value (NAV), i.e. the correct value of the assets of the fund.
For example, suppose a fund has a capitalization of $100 million, made up of 10 million units with a value of $10. If an investor wants to invest $10 million, 1 million units are issued at a value of $10 and the capitalization of the fund becomes $110 million.

It would be a different story if the shares available were limited to 10 million euros, so anyone who wanted to buy the shares would have to find someone willing to sell them. In this case, the price might no longer be $10, but that would depend on how much the buyer was willing to pay and how much the seller wanted to earn. This would create a situation where the price would fluctuate based on unequal supply and demand. If an asset was in high demand, obviously the price could go much higher than the correct price.

But how can you estimate the correct price?

In 2021, I released data that attempted to estimate the fair value price of Bitcoin, shown in the chart below. This suggested that in June of that year we had reached a relative maximum for Bit...

Crypto Jul 14, 2023 0 47 Add to Reading List

My data accurately predicted when Bitcoin would decline in 2021. Today, that indicates Bitcoin will surge to $130,000 or even higher.

Notice Join us on social networks

In any market, be it fruits and vegetables or financial assets, prices are determined by the intersection of supply and demand.

If tomatoes become scarce due to a flood, with the same demand, the price at the supermarket will inevitably be higher — just as it will be higher if, with the same supply, twice as many people want to buy tomatoes.< /p>

In the financial market, if the supply is unlimited, the price is not changed by demand, as in the case, for example, of a mutual fund.

Related: Don't Be Naive: BlackRock ETF Won't Be Bullish on Bitcoin

If more subscribers wish to buy this fund, more shares are simply issued at what is known as the net asset value (NAV), i.e. the correct value of the assets of the fund.

For example, suppose a fund has a capitalization of $100 million, made up of 10 million units with a value of $10. If an investor wants to invest $10 million, 1 million units are issued at a value of $10 and the capitalization of the fund becomes $110 million.

It would be a different story if the shares available were limited to 10 million euros, so anyone who wanted to buy the shares would have to find someone willing to sell them. In this case, the price might no longer be $10, but that would depend on how much the buyer was willing to pay and how much the seller wanted to earn. This would create a situation where the price would fluctuate based on unequal supply and demand. If an asset was in high demand, obviously the price could go much higher than the correct price.

But how can you estimate the correct price?

In 2021, I released data that attempted to estimate the fair value price of Bitcoin, shown in the chart below. This suggested that in June of that year we had reached a relative maximum for Bit...