Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Is Bitcoin Finally Going for the US$100,000 Mark?

Stock MarketsOct 21, 2021 09:16
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Is Bitcoin Finally Going for the US$100,000 Mark?

Despite China’s stance against Bitcoin and all other cryptocurrencies, Bitcoin is reaching new heights. It has already reached a US$60,000 valuation thanks to an amazing 40% rally in the past couple of weeks or so, and the chances of the momentum carrying it higher than the last 2021 peak are relatively high.

However, it’s still difficult to determine how high the currency could go. The optimists and most Bitcoin investors are rooting for this crypto to hit the US$100,000 for the first time. Some are even going as far as saying that US$100,000 is a conservative estimate, effectively endorsing the notion that the crypto could easily hit this ceiling.

Should you buy it? Right now, the “conservative” answer would be no. A great time to buy Bitcoin would have been early 2019 and even early 2020, when Bitcoin still had a four-digit price tag. If you had bought it then, you would have already seen four-fold or five-fold growth.

But buying now and hoping for US$100,000 might be a risky bet, even for high two-digit growth, especially if Bitcoin reaches that value in 2023 (as some experts are predicting). But if the crypto is destined to reach that mark in 2021, buying now can help you with some rapid growth.

But remember, the chances of Bitcoin coming down are just as ripe as it’s going up. And it might be a better, more efficient move to wait for the next dip to buy Bitcoin than buy it when it’s riding the current growth wave.

A crypto stock to consider If you want to put your crypto growth in a tax-sheltered account and you are not keen on keeping accurate track using a fund, a crypto stock like Galaxy Digital (TSX:GLXY) might be a great way to gain exposure. The stock has yet to trace the crypto momentum, and it’s still trading at a 50% discount from its April peak, unlike the crypto itself, which is just 9.2% down from the recent peak.

But when the stock rises in response to Bitcoin, it can offer much more magnified returns. Two factors endorse this notion: the stock’s history and its current valuation. The stock rose 3,200% from the beginning of 2020 to its April 2021 peak, a much more pronounced growth than Bitcoin. And it’s currently trading at a price-to-earnings ratio of just 6.6 (though price-to-book ratio is high at 3.3).

So, it might start to zoom upwards soon, and at its current value, it’s a much more reasonable buy than the crypto itself.

Foolish takeaway Galaxy Digital is a good buy for another reason. As a crypto-oriented technology stock, it’s much more comprehensive than a simply crypto mining stock. It focuses on crypto infrastructure and its integration with the broader financial industry in aspects like trading, investment management, investment banking, etc., making it a more wholesome buy.

The post Is Bitcoin Finally Going for the US$100,000 Mark? appeared first on The Motley Fool Canada.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

Is Bitcoin Finally Going for the US$100,000 Mark?
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email