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Bitcoin is closing in on $100,000 for the first time, but could still double after that, according to BCA Research. “After its recent surge, premised on the more ‘bitcoin friendly’ candidate winning the U.S. presidency, we can expect some near-term retracement — as was the case in April this year,” analyst Dhaval Joshi wrote in a report on Thursday. “On a multiyear horizon though, bitcoin’s structural uptrend is intact and will ultimately take it to $200,000+.” That is due to the belief that, similar to gold, bitcoin is a “non-confiscatable asset,” or an asset that cannot be taken from holders in the event of hyperinflation, banking system failure or state expropriation, and therefore acts as insurance against such events. That narrative gives Bitcoin its network effect: a positive feedback system in which the asset increases in value as more people use it. As global wealth rises, Joshi says, the value of the network effect, for both bitcoin as well as gold, will also expand. “Bitcoin, with a market value of $1.5 trillion, comprises less than 10 percent of the total market for non-confiscatable assets,” he said. “As bitcoin’s share of this market increases, and the supply of bitcoins reaches its upper limit, bitcoin’s price has substantial upside.” Bitcoin’s rally has paused since about Tuesday, although the flagship cryptocurrency is still on pace for a 16% weekly gain, according to Coin Metrics. Coin Metrics measures a week in crypto, which trades 24 hours a day, from the 4:00 p.m. ET stock market close one Friday to the next. The price of bitcoin has soared 32% since Election Day in the U.S. last week.
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