Bitcoin fell sharply on Monday, as the popular cryptocurrency wasn’t spared from the sea of the red that swept across risk markets, but the selloff hasn’t deterred some bulls who believe the next crypto rally could see BTC hit $100,000 as soon as November.
BTC/USD fell 9% to 43,486, but the popular crypto will “bounce back from today’s low points due to wider adoption,” Brad Yasar, CEO of EQIFI, said in an email on Monday.
“The widespread adoption … could see BTC hit $100,000 in 2022, or even as early as November 2021 if there is a rally,” Yasar added.
The bullish remarks on BTC come as the crypto market has been caught up in risk-off sentiment as investors hit pause on risky assets amid growing fears over a credit crunch in China.
China Evergrande Group, the second-largest property company in China, has more than $300 billion in liabilities, and reports suggest it won’t hit an interest payment deadline on its offshore bonds due Thursday.
As the real estate sector is a key component of the nation's economy, investors are growing increasingly concerned about a wider liquidity crisis that could hamper the China, and global economic growth.
Despite this backdrop, there is the reason for optimism amid signs of improving fundamentals on the Bitcoin network or blockchain.
“Bitcoin price action and on-chain investor responses appear relatively robust,” Glassnode wrote in its weekly on-chain report.
“Overall exchange balances have continued to decline this week, reaching a new multi-year low of 13.0% of circulating supply this week,” it added. “Supporting this observation, is a deeply negative (outflows) exchange net-flow reading this week, with current BTC outflows occurring at a rate of -92k BTC/month.”
Rising outflows from bitcoin exchanges often serve as a bullish indicator of demand showing that an increasing number of investors are moving their coins off exchanges to private wallets to hold bitcoin for the long haul.