Bitcoin briefly surging past 10.000 USD

In the relatively calm weeks after the halving event, Bitcoin has steadily gained ground and inched towards the 10.000 USD marker. On May 2, BTC briefly surged past 10k to a recorded high of 10.429 USD on Bitstamp before crashing over 1000 USD back to 9135 USD on the lowest point of this day. By evening volatility weakened, and BTC recovered to about 9500 USD, and it looks like it will remain at these levels for a bit.

NYDIG Bitcoin futures

Market observers suspect that the volatility is caused by traders taking profit above the 10k level once Bitcoin bulls pushed the price into the five-digit range. Traders and investors should expect even more volatility with rising Bitcoin prices as speculators will be tempted to take profits and cash out of Bitcoin as soon as possible after having to wait months and even years for a recovery.

Price predictions have become scarcer and tamer over the past few years since BTC’s 2017 rally, but the community still has some optimism for sky-high predictions. Shortly before the May 2020, halving event Bitcoin Analyst Nathan Lathka predicted that BTC could reach 80.000-100.000 USD before the next halving in 2024 and that Bitcoin’s long-term potential could see us staring at prices over 200.000 USD in the future. While many predictions are based on a gut feeling for Bitcoin’s potential, Nathan’s prediction is based on the theoretical Stock to Flow Ratio model, which asserts that Bitcoin has similar qualities as Gold and that the inherent scarcity of Bitcoin and increased usage will drive prices up.

What do you think? Will Bitcoin soar past 20.000 USD soon, or will we muddle on like the past two years?

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