Bitcoin Price Prediction 2021: Unanimously Strong, Still a Little Volatile
The most bullish prediction on Bitcoin pricing in 2021 comes from a Citibank analyst. Tom Despite the skepticism of the detractors and its volatile nature, the price of Bitcoin is expected to soar upwards in the near future. As 2020 is nearing its end, the noted crypto traders have been talking about the price rise prospects of Bitcoin in 2021. In fact, numerous analysts are predicting a bright future for the cryptocurrency.
Bitcoin pricing- Here it stands now?
Bitcoin has been showing prospects of tremendous growth in the last quarter of 2020. It is volatile, but that has not deterred the crypto analysts and followers from being bullish about its prospects. The end of this month shows Bitcoin climbing up the ladder. It has reached the $19000 mark. In almost two months, it has climbed to $18,900 from $10,400. Recently, it was estimated that the market capitalization of Bitcoin reached a staggering $337 billion. The previous record was $328 billion. For the first time in the last three years, the popular cryptocurrency has been inching closer to the psychological $20,000 mark.
In the fall of 2017, the cost of bitcoin started to rise. In October of that year, the cost got through $5,000 and multiplied again in November to $10,000. At that point, on December 17, the cost of one bitcoin came to $19,783. A few observers and pundits called this a value bubble, a considerable lot of whom made correlations with the Dutch Tulipmania of the seventeenth century. For sure, only a couple weeks after the fact, the cost of bitcoin fell quickly, smashing right down beneath $7,000 by April 2018 and underneath $3,500 by November 2018
That changed in 2020. As referenced above, reestablished revenue aroused among financial specialists. Truth be told, the quantity of individuals holding in excess of 1,000 coins has bounced. Costs rose consistently throughout the year, beginning at $7,200 on January 1 and shutting at $18,353 on November 23. That is an expansion of generally 155%.
What are the newest crypto market trends?
The crypto sector trends indicate Bitcoin price is set to make a new record. The breach of $18,500 is a strong indicator, and so is the diminished selling pressure. The latest information shows that Bitcoin holders are not willing to sell BTC at the prevalent pricing. This is although the price skyrocketed from $3600 to a staggering $18500 in just eight months. So, it is likely that they expect the cryptocurrency price to rise even more in the next few months.
The crypto analysts think Bitcoin is not going to wither away. The millennials are warming up to cryptocurrency for investment needs, and soon more digital payment platforms will integrate Bitcoin in their processes. JP Morgan opines that in the future Bitcoin holds the potential to replace gold. It can emerge as an alternative currency. Mike Novogratz, the CEO of Galaxy Digital, thinks the unprecedented growth of Bitcoin in 2020 is fuelled by investors seeking newer avenues and institutional buy-ins.
Big players investing in Bitcoin can be a factor
In 2020, some of the big players in payment processing and asset management sectors showed keen interest in Bitcoin, and that may be a reason behind the price rocketing upwards. PayPal, the leading international payments provider, introduced the ability to buy and sell Bitcoin and other cryptocurrencies from its user accounts. The reports show, 26 million merchants on PayPal’s network began dealing with cryptocurrencies.
Square, another noted Payment service bought 4,709 Bitcoin, for approx. $50 million. Fidelity Investments, which is a big asset manager, launched its Bitcoin mutual fund.
Institutional reception of bitcoin is here, you simply need to realize where to look. While digital money advocates have since quite a while ago attempted to assemble an environment considered tenable enough for something other than mother and pop financial specialists, almost 20 organizations previously recorded administrative work with the U.S. Protections and Exchange Commission last quarter, indicating they put resources into the Grayscale Bitcoin Trust (GBTC), a result of Barry Silbert’s New York-based Grayscale Investments, LLC.
While a large number of the names are notable shared assets like Ark Invest with $4.5 billion in resources under administration and Horizon Kinetic, overseeing $5.3 billion, as indicated by their financial specialist exposure frames, the most recent filings are likewise overflowing with relative novices to the space including Rothschild Investment Corporation, Addison Capital and Corriente Advisor. “It’s hard to have a perfect coordinated sign on who’s entering and leaving the space,” says Ark Invest crypto expert Yassine Elmandjra. “In any case, there are some fascinating intermediaries that can measure institutional interest.”
These developments have not gone unnoticed, and in the next few months, more such crypto investments may make headlines. These examples of Bitcoin adoption by global investors are likely to inspire their rivals and allied partners.
The forecasts on Bitcoin pricing 2021 made by top analysts
It is not common to find the noted crypto and financial sector analysts agreeing so unanimously in their predictions! The 2021 Bitcoin price target predictions differ in value, but most noted analysts agree that the virtual currency is poised for tremendous growth. Here we will have a look at some such price predictions on Bitcoin for 2021:
Fundstrat Global Advisors’s managing partner, Tom Lee says Bitcoin will replace gold as an investment asset. It is already racing ahead of other asset classes and hedges.
S2F is a popular prediction model for Bitcoin. It shows the cryptocurrency price will reach $100,000 in 2021 end. It hints such a high value will be achieved owing to the currency’s gradually diminishing supply and peaking demand.
Mike Novogratz is a billionaire investor who thinks the price of Bitcoin may reach as high as $65,000 by 2021. As per his opinion, Bitcoin will touch the $20000 mark and then fall back only to show a monstrous growth and reach $65000. This will partly be driven by growing Bitcoin scarcity. Since the total number of Bitcoins to be mined is fixed at 20 million, people have started viewing it as an asset already.
Bloomberg analyst Mike McGlone is also pretty upbeat about Bitcoin pricing growth prospects. He thinks Bitcoin pricing will get as high as $170,000 by 2022. He says that Bitcoin”s past performance is indicative of such tremendous growth.
Fitzpatrick has set an overtly ambitious pricing prediction of $318,000 for the cryptocurrency in 2021. He urges people to look into the historical trajectory of Bitcoin. The price growth of Bitcoin was staggering in 2010 and 2011. The same pattern may get repeated in 2021, he says. In periods of high inflation, people seek cryptocurrencies as a safe-haven asset and also hedge against inflation.
Morgan Creek Capital‘s founder Anthony Pompliano thinks Bitcoin pricing will touch $100,000 mark by 2021 end. His company aids businesses in investing in the latest blockchain technology. The prevalent supply issuance of Bitcoin can’t keep pace with the ever-increasing demand from many sectors. Individual investors and tycoons would probably like to invest in this currency. The price hike is the only way to find the equilibrium between supply and demand. Apart from the big companies like Square and PayPal, several hedge-fund managers, large investors, and venture capitalists are showing interest in Bitcoin these days.
What the future holds?
It is a little early to make predictions about Bitcoin pricing in 2021. The cryptocurrency price is rising steadily, and that has made investors bullish, for sure. The skepticism on its potential and safety is fading away with time. However, given its volatile nature and the number of factors involved, it is hard to make an exact assumption on the growth limit. The growing interest of financial sector giants and billionaire investors in Bitcoin is encouraging. The millennials are also expected to become the next big adopters of the currency. The analysts are also bullish on the upcoming and new changes in monetary policies that can devalue traditional currencies.