Is bitcoin going to break $,50,000 in 2021?
December has arrived, which means crypto traders and
investors have started their juju to predict the Bitcoin price for the upcoming
As of now, Cryptocurrency bulls are probably celebrating, as
Bitcoin recorded a new all-time surge of over $19,800 on Monday— after three
Keeping this record in mind, what do the experts have in-store in terms of Bitcoin price prediction for 2021?
Before getting into this, you should know more about this
new record high for BTC. After recording a surge of $19,783 in December 2017,
the major crypto had gone down below the horizon. However, in the past weeks,
we have observed Bitcoin continue to rise higher. And on Monday, it has finally
reached to a new all-time high of $19.850.11 before going down again.
With this trend in the rear-window view, many analysts have
started setting amazing price targets for BTC in 2021, believing that this
long-anticipated record will help boost Bitcoin price predictions for the
Is Bitcoin really going to climb so high as per 2021 price speculations? Well, to get a
better understanding, we monitor the significant Bitcoin price drivers and try
to establish the BTC 2021 predictions to assist you in deciding whether to be a
bear or a bull in your future BTC trading.
overview: Where do we stand right now?
The latest all-time high record of Bitcoin already suggested
a price surge in the upcoming year. In fact, the leading cryptocurrency Bitcoin
has performed exceptionally this year.
Earlier in November 2020, we saw Bitcoin prices move up
gradually to $19,000. In the course of just two months, the value of Bitcoin
rose to 90%, going up from $10,400 on October 1st to $18,000 on
November 21st, 2020.
Currently, the total market forecast, capitalization of Bitcoin hit a
surge of $337 billion, which surpassed its previous record of $328 billion
since December 2017.
For the first time in three years, the cryptocurrency is on
the verge of hitting a landmark of $20,000. If it manages to do so, investors
would have detailed BTC predictions to make a more informed investments and
grab the perfect opportunity.
The significant drivers that can help boost the Bitcoin
prices and set new records include rising institutional demand, lower selling
pressure, and the breakthrough of $18,500 (a solid resistance hurdle).
trend of Selling Pressure
Bitcoin holders have to deposit BTC on exchanges first in
order to sell it. When the Bitcoin exchange reports a fall, it usually
indicates a low selling pressure in the market.
The Bitcoin balance on exchanges drop to 18 percent though
the year till date, as per Glassnode. This significant drop suggested a
downward trend of Bitcoin liquidity.
In a wider concept, this trend indicates that Bitcoin
holders are not willing to sell BTC at the current price rate, which resulted
in a surge in price from $3,600 to $18,000 in less than eight months.
Price Prediction 2021
The billionaire investors predict a surge in Bitcoin price
for up to $65,000, implying that 2021 offers an ideal time to purchase.
According to him, Bitcoin will definitely hit $20,000 before turning down again
to $16,000, and from there, it is expected to climb again over $60,000 by the
end of the year because of the “network effect”, new buyers and reduce Bitcoin
According to Novogratz, “People are going to Bitcoin because
there’s 20 million Bitcoin that will ever be mined, so there’s complete
scarcity in it. People believe it’s a store of value. It’s a social construct,
and you can’t change that.”
There are several statements from the Citibank analysts too including Tomas Fitzpatrick.
Predictions by S2F
The founder of a famous Bitcoin prediction model
Stock-to-Flow (S2F), who tweets by the username of “PlanB,” expects that the
cryptocurrency will hit a benchmark of $100,000 by the end of the 2021.
This future Bitcoin price has been calculated by taking into
account the supply and demand theory. Since Bitcoin is halved every four years,
the supply is steadily growing down leading to high inflation rate.
Theoretically, this could trigger a surge in demand along with high rate of
price predictions by Bloomberg Strategist
Mike McGlone, an analyst from Bloomberg shared his two cents
on Bitcoin prices for the upcoming year. He sets the price target of $170,000
BTC for 2022, believing that the cryptocurrency has not completed its upward
“If you look at past performance, which is potentially
indicative of the future, the next year or two could add a zero to the back of
the number,” he said.
Considering that Bitcoin closed 2019 at $7,000 and now it’s
being traded for over $17,000, with an addition “1” in the previous number, it
could possibly mean that the upcoming year would add an additional zero to the
current price, setting a $170,000 price rate for 2021.
It’s just a matter of time to see whose BTC predictions turn
out to be right on spot! Meanwhile, we do see a bright prospect for Bitcoin
prices in the upcoming 12 months.
There’s no denying that Bitcoin is gradually becoming
stronger than before! It remains to be seen how traders would make profitable
trades out of it.