Cryptocurrency Experts Predict Bitcoin to Rise Above $100,000 in 2021
2020 became an unforgettable year for cryptocurrencies, especially Bitcoin. Crypto investors, money managers, top hedge funds, and other crypto experts bet that bitcoin could rise to as high as $100,000 in 2021.
While some have drawn eye-rolls from this Bitcoin prediction, others strongly believe that it will happen in a year. In January 2020, the top crypto by market cap had gained 160%, which was bolstered by scarcity and institutional demand when payment companies like PayPal and Square bought it on behalf of the customers.
Going Up 5X Might Not A Big Deal
If you can still remember, the all-time peak of Bitcoin is just under $20,000, hit back in December 2017. As you know, this cryptocurrency was introduced to the market in 2011 and traded at zero.
According to a chief investment officer, going to $100,000 from $18,000 in a year is not a stretch. There’s a big chance that crypto can go up to 5X. It was seen to go up from 10x to 30x in one year.
Bitcoin Could Hit Up to $288,000 By the End of 2021
Several crypto specialists also predict that Bitcoin could hit $100,000 all the way to $288,000 by the end of 2021. That is according to a model that uses the stock-to-flow ratio, which the commodities’ scarcity.
Other crypto analysts predict Bitcoin to an $318,000 high by the end of 2021 because of the opaque ownership, ease of movement across borders, and limited supply.
However, some independent proprietary traders contradict these numbers. According to them, hedge fund models on Bitcoin is considered rubbish. While it can be a mania, it does give any clue.
Previous Halving and Renewed Ascent
Bitcoin largely relies on mining computers for validating the transaction blocks. This happens through competition that involves solving the mathematical puzzle every ten minutes.
A miner who will solve the puzzle and then clear the transaction first will be rewarded with new bitcoins. Every four years, the reward is cut in half for miners. This move is intended to curb inflation.
Bitcoin went through its third halving in May 2020. this resulted to restricting the supply since the rate at which the new coins are created was reduced. The said halving kick-started the renewed ascent of Bitcoin.
Companies like PayPal and Square have launched their crypto service to their users. That event scooped up all the newly created bitcoins. It resulted in a shortage of Bitcoin. Besides, it has also driven the rally.
Bitcoin Climbs on the Adoption Curve
By looking at the Grayscale Bitcoin for past years, it’s convincing that family officers, smaller institutional investors, and high-net-worth individuals have increased Bitcoin’s exposure. Besides, some publicly-traded companies like MicroStrategy invest in crypto as a treasury asset.
The main point here is that Bitcoin climbs on the adoption curve. That is especially as deep pockets investors buy it when the supply gets more scarce.
These things can push the Bitcoin price high enough to start a serious competition against gold with regards to market size. If that happens, a lot of people, including asset managers and the large mutual fund, will attempt to get a piece of the pie.
Bitcoin is known for its predictability and resilience. This cryptocurrency also comes with an algorithmic monetary policy. These things help many crypto analysts to give their predictions every year. So, the prediction that it will hit $100,000 or even more is a big thing in the entire crypto market.
Whether many would, believe it or not, at least traders have nothing to anticipate. Meanwhile, traders who want to use an automated crypto trading system visit here fotolog.com