The price of Bitcoin crossing $100,000 is no longer just a dream; it's shaping up to be a real possibility by this time in 2026. Here are 3 main reasons how Bitcoin's reserves will push the price to these heights:
1. Huge purchases (The Supply Shock)
According to the proposed law in America, they will buy a total of 1 million bitcoins at a rate of 200,000 each year.
The total number of Bitcoins is fixed (only 21 million). Most of them are held by long-term investors.
When a country like America starts buying such a massive amount of Bitcoin from the market, there will be a shortage of Bitcoin. According to economic rules, when supply decreases and demand increases, the price will skyrocket.
2. Competition from other countries (Game Theory)
If America starts buying Bitcoin, China, Russia, and European countries won't just sit idle. They will fear that if America hoards all the Bitcoin, they will fall behind in the future.
This is referred to as 'game theory'. When one country starts buying, others will be forced to purchase Bitcoin to protect their own reserves.
Due to this global competition, the price of Bitcoin could rapidly surpass the milestone of $100,000.
3. Institutional and public trust
When Bitcoin finds a place in a country's treasury, its acceptance among the general public significantly increases.
Major banks and pension funds will then invest in cryptocurrencies without hesitation.
Currently, Bitcoin is fluctuating between $91,000 and $95,000. Experts believe that once the first purchase of Bitcoin reserves begins, it will break through the psychological barrier of $100,000.
