Bitcoin is reaching a 100k price…and beware of the downside.

I posted a video on my YouTube channel explaining why the bitcoin price would surge and why investors should seriously consider adding more exposure to Bitcoin.

Here‘s why Bitcoin is not a bubble and why its prices would continue to rise, but honestly, I do not think the Bitcoin price would go to the moon, we should be prudent when considering the upside.

1. Limited Supply: Bitcoin’s protocol dictates that only 21 million bitcoins will ever be created. This limited supply contrasts with traditional fiat currencies, which can be printed endlessly by central banks. This scarcity creates an inherent value proposition, especially in an era where concerns about inflation and currency debasement are prevalent.
2. Increasing Adoption: Over time, Bitcoin has gained acceptance as a legitimate store of value and a hedge against economic uncertainty. Institutional investors, corporations, and even governments have begun to recognize its potential, leading to increased adoption. For instance, Tesla’s announcement of purchasing Bitcoin and accepting it as payment for its products, as well as PayPal’s inclusion of Bitcoin in its platform, have contributed to its mainstream acceptance.
3. Institutional Investment: Institutional investors, including hedge funds, asset managers, and corporations, have started allocating part of their portfolios to Bitcoin. This institutional demand has significantly increased in recent years, driven by factors such as the search for yield in a low-interest-rate environment, portfolio diversification, and a desire to hedge against currency devaluation and inflation.
4. Market Sentiment and Speculation: Like any other asset, Bitcoin’s price is influenced by market sentiment and speculation. Positive news, such as regulatory clarity or prominent endorsements, can drive investor confidence and push prices higher. Conversely, negative news or regulatory uncertainty can lead to short-term price volatility.
5. Network Effects and Infrastructure Development: Bitcoin benefits from strong network effects, meaning that as more people use and accept it, its value increases. Additionally, ongoing improvements in infrastructure, such as the development of more user-friendly wallets, exchanges, and payment processors, make it easier for individuals and institutions to buy, hold, and transact with Bitcoin, further fueling its adoption.
6. Macroeconomic Factors: Bitcoin’s price is also influenced by macro-economic factors such as inflation rates, interest rates, and geopolitical events. In times of economic uncertainty or instability, investors may turn to Bitcoin as a safe-haven asset, similar to gold. In a high-interest rate environment, bitcoin will prove to be a solid asset to hold.
7. Halving Events: Bitcoin undergoes a process called “halving” approximately every four years, where the reward for mining new blocks is cut in half. This reduces the rate at which new bitcoins are created, further contributing to its scarcity and potentially increasing its value over time.
8. Technological Developments: Advancements in Bitcoin’s technology, such as improvements in scalability, privacy, and security, can enhance its utility and attractiveness as a long-term store of value and medium of exchange.
9. Increasing Recognition from the Authority: Now we are seeing what’s different from many years ago when BTC was first realised now the authority recognizes bitcoin as tradable commodities and equities as long as bitcoin traders accept proper regulations and follow the rules.

For the above reasons I firmly believe the Bitcoin price will surge to 100k dollar price level but investors still need to be extremely cautious when the BTC price tops there will be very strong sell pressure. Therefore be mentally prepared for short-term volatility.