Bitcoin price did well in 2020. To start with, the price has risen by more than 300%, exceeding the 2017 all-time high price of roughly $20,000. This price move was mainly caused by the massive influx of institutional investors. Institutions spent millions of dollars buying Bitcoin to include in their portfolios.
Because of this rising interest, the price increased even more, reaching $30,850.15 on January 2. The price had since reached a new all-time high of over $41,000 before a significant pullback that brought it down to $31,000. It has since recovered to reach $40,000 again briefly before the current consolidation going on at around $35,000.
At the same time, despite the COVID-19 menace, Bitcoin saw adoption from payment giants, such as PayPal. It was reported only a few months later that 25% of PayPal’s customers had already traded Bitcoin. Worthy of note is the fact that the company’s CEO called Bitcoin a scam in 2019.
Some banks that have criticized Bitcoin have also become positive about the asset’s future. JP Morgan, whose CEO Jamie Dimon was a known critic of Bitcoin stated in December 2020 that gold will suffer for many years as Bitcoin, continues to grow. The bank has also predicted in 2021 that Bitcoin could reach $146,000 in the future as it outcompetes gold.
What Does 2021 Hold for Bitcoin Price?
For the year 2021, crypto experts have predicted many things that are likely to play out for Bitcoin. One of such predictions is that Bitcoin will be acknowledged as an international payment currency. This prediction is hinged on the adoption of Bitcoin for use by PayPal’s 340 million users.
As long as institutional investors maintain the high level of interest demonstrated in 2020, the COVID-19 pandemic is not expected to affect the asset. This was demonstrated in 2020, the most challenging year in decades, which turns out to be the same year when Bitcoin made 100% of its 2017 all-time high price.
The leading digital asset manager – Grayscale, played an important role in bringing institutional investors into the space in 2020. According to their data, the company has over $20 billion in assets under management currently. It acquired so much Bitcoin that, on January 7, it was reported that Grayscale holds 3% of the entire circulating supply. This massive accumulation for institutional investors is likely to continue this year as the company has bought thousands of BTC even in the last few days.
Bitcoin had also competed favorably with gold in 2020. JP Morgan Chase’s report has also said that Bitcoin will become a hedge against inflation in 2021. This is the role that gold has played for decades. Bitcoin’s return on investment has, however, proven to be much better, which has attracted investors significantly.
Bitcoin Price Prediction and Analysis for 2021
There are diverse opinions on how BTC price is expected to perform in 2021. However, due to the huge adoption that Bitcoin is getting as a store of value, the predictions are mostly positive. We will look at a few of such predictions for Bitcoin’s price in the year 2021. Already, Citibank is just one of few organizations and individuals that have predicted Bitcoin may go much higher in 2021. The following are Bitcoin price predictions in 2021, according to some of the most popular price forecast sites.
The price of Bitcoin is expected to reach a high of $73,267 in 2021. This will be in November, when the price is expected to gain 152%. The lowest price that this website expects is $29,036, which is the minimum prediction for January.
Previsionibitcoin foresees that Bitcoin’s price will pump significantly in 2021. Specifically, the price is expected to rise progressively and reach a peak of $148,259.44 in December. This prediction is based on the increasing adoption of technology, which will lead to the adoption of crypto. The media has not started the kind of publicity seen in 2017, but analysts say this is a good thing, as it means the level that gets media attention has not been reached yet.
A cryptocurrency trader and analyst known as BitcoinMaximus published a prediction for Bitcoin for 2021. Although he had predicted Bitcoin’s price for the year before, he adjusted the prediction due to “the faster than expected rate of increase after the second touch of the 200-week MA.” The chart below shows the 200-week MA:
Based on the foregoing, the analyst predicts that if the rate of increase continues as that of 2020, Bitcoin’s price can reach a high of $230,000 by 31 December 2021.
Willy Woo‘s Bitcoin Price Prediction
Cryptocurrency analyst Willy Woo earlier predicted that Bitcoin’s price could hit $200,000 in 2021. He has, however, since reviewed his prediction upward. Woo’s current prediction is that $300,000 may not be far fetched with the rate at which the asset is adopted right now. His prediction is one of many that were published on Cointelegraph.
There are many new developments about Bitcoin that have not yet been factored into these price predictions. Such is the recent announcement by Goldman Sachs that it intends to enter the crypto industry by providing custody for digital assets. Goldman Sachs, just like JP Morgan, has been an ardent critic of Bitcoin that has just reversed its position on cryptocurrencies. If such trends continue, 2021 could become the year of cryptocurrencies indeed.
Interesting to note is that as Bitcoin continues to pump, analysts see the possibility of another altcoin like that of 2017. If this holds true, not only Bitcoin but also altcoins are likely to experience more investments, which could ultimately cause a remarkable growth in the industry as a whole.
The above are just a few of the several predictions about BTC price performance in 2021. They are not 100% accurate but based on the rate of growth the asset is experiencing as more investors, particularly institutional ones, continue to flock into the industry. Some people will consider some of them to be conservative, but it may be better to wait and see how the year plays out.
Featured image: cryptonews.com