Why Kraken Analysts Predict Bitcoin Hitting $100,000?
From the very first days, the Bitcoin price has always attracted varying price predictions from many crypto analysts as well as skeptics. Kraken, a US-based crypto exchange, believes the price of the top coin could hit $ 100,000 before the end of 2021, here’s why.
BTC will hit $ 100,000 if history repeats itself
follow report Kraken recently suggested, citing data from previous years, that BTC prices tend to rise in the fourth quarter of each year. The stock exchange also claimed that “average returns of +119% and +58%” were consistently achieved during this period.
Accordingly, analysts believe BTC could end the year very close to $ 100,000 if the previous year’s average returns repeat. In Kraken’s words, “With BTC closing the quarter at $ 43,800, a + 119% return would bring BTC to around $ 96,000 in the fourth quarter of 2021.” December of each year is usually the “auspicious” month for Bitcoin.
According to Kraken, BTC will hit $ 96,000 by the end of the year if history repeats itself.
However, when we see the appearance of its average return, it means that BTC could end the year at around $ 69,000. Interestingly, the value of BTC has risen since the beginning of October, reaching highs it hadn’t reached in the previous months.
NFT and DEX promote ETH burning
Regarding other digital assets like Ethereum, Kraken suggested that the amount of ETH burned daily is mainly driven by decentralized exchanges (DEXs) and massive demand for NFTs.
According to them, “the activity on NFTs and DEXs accounts for the bulk of ETH burns, if the demand for NFTs and DEXs declines, it could make ETH less vulnerable to inflation and consequently decrease the demand for temporary digital assets”.
Kraken also acknowledged that the EIP-1559 upgrade had a positive impact on Ethereum fees during the London hard fork.
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According to CryptoSlate