Bitcoin’s Long-Term Price Movement Is Similar To Bacterial Growth New Study Explains

Prateek Goorha, an interdisciplinary social scientist is of the view that the price movement of the leading cryptocurrency follows the growth pattern of bacteria.

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Prateek Goorha, an interdisciplinary social scientist is of the view that the price movement of the leading cryptocurrency follows the growth pattern of bacteria.

Bacteria grows in four phases, of which three are relevant to Bitcoin:

  1. Stagnation (yellow box in the chart below)
  2. Exponential (blue box)
  3. Stagnation (red box)
Bitcoin's Long-Term Price Movement Is Similar To Bacterial Growth New Study Explains
Source: Coinmonks; Prateek Goorha

Bitcoin price has a parabolic supertrend

Goorha wrote two blog posts on Bitcoin’s price growth, a phenomenon that he describes as “parabolic supertrend”. The leading cryptocurrency, just like Bacteria, has three major phases in its lifespan.

The first major phase is the lag phase, in which the Bitcoin price saw little to now growth as it acclimated to a new market.

Last year, we saw the exponential phase, in which the cryptocurrency hit a staggering value of $20,000. Bacteria similarly expand to use up all available resources.

The resources, however, are finite and eventually will run out, leading to a decline in growth. This is called the stagnation phase. Without the introduction of new resources, the bacteria population begins to fall.

This is the phase that saw the Bitcoin price plummet from its all-time high price towards the end of last year to its current price just above the $6,500 mark.

The market has experienced a massive sell-off over the past few months, with the total market cap dropping from over $800 billion early this year to now stand at just above $200 billion.

Fiat currencies such as the U.S. Dollars, Japanese Yen, Euro, or South Korean Won that have been invested into the market are the resources that feed the cryptocurrency growth.

Bitcoin's Long-Term Price Movement Is Similar To Bacterial Growth New Study Explains
Source: Coinmonks; Prateek Goorha

The next phase will trigger a bull run

Just like how the bacteria will die without the introduction of new resources, so too will the bitcoin market, according to Goorha.

He predicted that as the Bitcoin market becomes more open to average investors, the next phase will be the lag phase again. The infusion of fiat money from the general public will fuel the growth of the network.

Each time Bitcoin price has dropped after a massive surge, it has never dropped below the previous price level.

For example, in 2013, BTC surged to reach the $1,200 mark from below $100. When the market settled and Bitcoin’s price crashed, it continued to trade at just above $200, still twice its value before the surge.

Goorha believes BTC price will hit the $20,000 mark again. He added that the much-anticipated bull bun will happen soon, possibly pushing the price above even the $50,000 mark.

His most optimistic projections foresee future market highs with Bitcoin trading as high as $250,000.

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