Over the year, the most popular cryptocurrency has grown by 750%, and since the beginning of 2021, its price has increased by more than 100%. It’s not the first time that Bitcoin price sets new records and then moves to weekly lows. In 2017, the BTC price grew sharply but ultimately didn’t reach the $20,000 mark.
Thus, the main question remains open: what will the BTC price be at the end of 2021? We’ve collected price forecasts and will find out whether Bitcoin will continue its growth to the moon — $100,000. Let’s get started!
Cryptocurrency Reaches New Horizons
We can see that the rules of the game have changed slightly in December 2020. Bitcoin’s market cap, which has long passed over $1 trillion, makes BTC too important to ignore.
Many payment systems decide not to confront the new trend, but to follow it. Large commercial organizations continue to accumulate crypto assets at record levels. These big players demonstrate significant market power: as long as they continue to enter the market and deal with cryptocurrency, this gives a lot of support to Bitcoin.
It’s worth noting that in total only 21 million bitcoins will ever be produced. Currently, there are about 18.5 million bitcoins in circulation, some of which are lost forever. Taking into account the popularity, limited supply, and current demand for the most famous cryptocurrency, the price is likely to continue to increase.
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What Do Crypto Experts Say?
Despite its profitability, Bitcoin is considered an extremely volatile asset. It’s necessary to note that investing in Bitcoin definitely doesn’t work as a short-term one.
During a week, it can show monthly all-time lows several times, and in the end, will demonstrate significant growth — not every investor will be able to deal with emotions. Let’s consider Bitcoin as a medium-term investment.
The good news is that there are many cryptocurrency experts who can make sound and potentially accurate BTC price forecasts over the coming years.
According to the table of Bitcoin price forecasts on Allcoinpredictions, out of 140 predictions, only 3 state about a fall in the price, and the remaining 137 are positive with varying degrees.
Current BTC Price Forecasts on Allcoinpredictions
In addition, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, predicted the growth of the BTC rate to $100,000, he wrote about this in the Bloomberg Galaxy Crypto Index report.
Mike McGlone noted that the current situation is very similar to that of 2019 when the rate of the first cryptocurrency dropped to $4000 and then increased significantly:
Bitcoin appears to have built a base around $30,000 that’s akin to $4,000 at the start of 2019, and we see performance parallels that could get the benchmark crypto back on track toward $100,000
The analyst believes that Bitcoin and Ethereum have built a strong base in the past months and currently are in a growth phase.
What Can Influence Forecasts?
Firstly, as with any limited asset, supply and demand greatly affect the price of Bitcoin. BTC price rises when demand for new coins exceeds supply.
This usually happens after Bitcoin halving when the reward for adding a new block to the blockchain is halved. Such an event of artificial inflation took place in May 2020 and the next ones are expected to take place in 2024, 2028, and 2032. So, in 2021 you can keep calm.
Secondly, it’s influenced by media coverage. The more its skyrocketing price has been covered in the media, the more people are starting to make investments.
Let’s recall, for example, how at the end of 2020 PayPal announced the possibility of paying in BTC. It hit all the headlines, giving many potential investors the boost they needed.
Thirdly, BTC is strongly influenced by competition in the crypto market. Although Bitcoin is the ‘king of cryptocurrencies’, new promising altcoins are beginning to attract investors as well. The good news is that Bitcoin is much more resistant to market competition than most altcoins. It hasn’t lost its status as ‘digital gold’ over the decade, despite the fact that new cryptocurrencies may be technically more reliable or scalable.
Price forecasts allow you to look at the situation from the outside and more accurately assess all fears and risks. Bitcoin price predictions include both optimistic and pessimistic forecasts. It remains only to observe how the price of digital gold will change in the future.
Will Bitcoin surge to $100K? What do you guys think? Feel free to share your price forecasts in the comments!
This article is not an investment recommendation. Investors should take into account that the cryptocurrency market is very risky and they make their investments at their own peril and risk.