Bitcoin price has spent the last two years hovering around $10,000 – a key resistance level that in the past has incited serious FOMO. But according to an early Bitcoin investor who has seen a thing or two, the cryptocurrency won’t hover around that price forever and sees parallels between the current price action compared the calm before the breakout into the last bull market.
Early Crypto Investor: Bitcoin Can’t Hover Around $10,000 Forever
The world will know soon enough if scarcity-focused valuation methods like the stock-to-flow model continue to hold true for Bitcoin. But if they are accurate, the lowered block reward miners now receive in BTC should begin to force Bitcoin prices higher due to lower supply flow.
Natural supply and demand dynamics then begin to sway in favor of price increase, and the asset forms a bubble. And there’s no reason to think otherwise – that’s exactly what the cryptocurrency did several times now.