Blockstream CEO Adam Back believes that Bitcoin (BTC) is on track to hit $100,000 per coin on or before the halving.
Back reaffirmed his prediction in a series of tweets on Feb. 28 based on current trends and sentiments within the crypto market.
With the halving event only 51 days away, Back’s projection has sparked discussions among investors and enthusiasts about the potential for a substantial increase in Bitcoin’s value.
Momentum
Back’s analysis points to a confluence of factors driving the market’s momentum, particularly the liquidation of bears and leveraged shorts, who have been forced out of their positions due to the rising prices.
Additionally, he said that over-the-counter (OTC) trading desks are running low on coins amid daily buy walls of $500 million or 10,000 BTC from exchange-traded funds (ETFs), indicating an intense buying pressure that could propel the market upwards rapidly.
Back also observed a shift in investor behavior, with individuals initially waiting for a price dip now entering the market due to fear of missing out on further gains. This behavior is reflected in the adjustment of profit-taking limit orders, with some investors opting to remove or raise their sell orders in anticipation of higher prices.
The Blockstream CEO’s prediction aligns with the view held by most Bitcoin proponents — some of whom see Bitcoin climbing to $1 million. Meanwhile, more sober predictions are calling for $150,000 before year-end.
Gamma Squeeze
Back said that Bitcoin typically surges very quickly during bull markets, and the roughly 20% climb over the past two weeks indicates building momentum. He added that it only took eight trading for BTC to hit an ATH the last time it was trading at $57,000.
Back’s reference to a statistic indicating that Bitcoin’s significant price gains typically occur within a condensed timeframe each year adds an analytical dimension to the market’s expectations as it approaches new highs.
Back also said that he was bullish on MicroStrategy, which now holds more than $11 billion in BTC, as a drastic rise in Bitcoin’s value has the potential to result in a “gamma squeeze” on the company’s stock.
This sentiment is supported by others in the market, with discussions around the notable increase in Bitcoin’s monthly candle — the second highest in its history — and the rapid price movements that have historically followed significant milestones.
With almost two full trading left in February, Bitcoin’s monthly candle still has the potential to become the largest of its lifetime.
