The most popular and debated topic, as far as public interest is concerned, remains the price of Bitcoin (BTC) and predicts its value in the future. There had been many BTC prediction in 2020 would be the year that the world’s biggest cryptocurrency would hit $20,000. There was only a 7% chance of this happening. Now the question arises of what will be bitcoin price predictions for 2021. As the bitcoin price moves around $30000 per bitcoin level. Now cryptocurrency traders and investors are looking for ideas that might tell how bitcoin will fare through 2021. Bitcoin has built up its reputation as ‘digital gold’ throughout 2020.
In 2021 investors will get their chance to pay their money and take their choice as to whether they see bitcoin and gold as stores of value. In this article, we’re going to give you a range of Bitcoin price predictions for 2021.
Bitcoin was created in 2009 by an anonymous developer called “Satoshi Nakamoto” and was the first and original cryptocurrency. Bitcoin allows people to send and receive funds without a third party intermediary and it is a decentralized payments system. The technology by which Bitcoin operates is called a blockchain. Every single transaction that has ever been processed on the Bitcoin network is available to view on the blockchain. Furthermore, once a transaction has been added, it can never be changed or removed.
When sending Bitcoin to another person, a transaction normally takes about 10 minutes. When it was first released in 2009, its price was less than 1% but in 2017 it reached an all-time high of around $20000.
In real life, nobody predicts the future of cryptocurrency. In the cryptocurrency world prices are very volatile which means that the value of a coin can go up or down very quickly. This makes predicting prices more difficult than traditional markets.
When considering the future value of a cryptocurrency, it is always better to look at real-world events which are as follows:
- Improved technology
- Future roadmap objectives
- New partnerships
- Even regulations
The most important thing is that you always perform your independent research before investing. Never buy a cryptocurrency just because a price prediction excites you. Everyone has a different opinion and there is no guarantee that anyone will get it right.
Bitcoin Price Prediction 2021
Fran Strajnar is the CEO of Brave New Coin, a cryptocurrency research organization. Fran Strajnar believes that the price of bitcoin will reach $200,000 by the year 2021. Fran Strajnar tells that adoption rates are increasing all the time, which includes more and more people are using the network and an increase in wallets and apps. This is very much good as more people buy and use bitcoin.
John McAfee the creator of the popular anti-virus software McAfee. McAfee is well known in the cryptocurrency industry because he makes lots of price predictions on Twitter. Crypto projects pay him more than $100,000 to do so. In 2017, McAfee said that Bitcoin would reach $500,000 in 2021, McAfee then increased his Bitcoin price prediction for 2021 to $1 million.
McAfee claims that his prediction is based on his price prediction model. If his Bitcoin future price of $1 million comes true in 2021, that would give it a total market capitalization of $15 trillion. McAfee predicts that bitcoin would need to increase its value by more than 4,900% from its all-time high of $20,000.
Osato Avan-Nomayo is an analyst from Bitcoinist. This prediction is based on the fact that in 2021 the bitcoin mining reward will be halved from 12.5 BTC to 6.25 BTC. Although Bitcoinist doesn’t give a specific Bitcoin future price for 2021, their analysis predicts that its value will reach new all-time highs in 2021, which will be at least $20,000.
What do Investors Think?
A Kraken survey that attracted more than 350 responses found that the average price target for 2021 stands at $36,602 – a 53 % rise from current levels. Investors should know about the new record high for bitcoin. Analysts set 2021 price targets near $50,000 and $100,000.
New Bitcoin Adepts: PayPal, Square, and Fidelity Investment
In October 2020, the international payments provider PayPal enabled its clients to sell and buy Bitcoin and other cryptocurrencies right from their accounts. According to Bloomberg, 26 million merchants from PayPal’s network started accepting cryptocurrencies.
Payment service Square also decided to hold part of its cash in Bitcoin. The company bought 4,709 Bitcoin, which cost around $50 million. This money represents almost 1 % of the total assets of Square as of the end of the second quarter of 2020.
The billionaire investor expects the price of Bitcoin to surge to $65,000, suggesting 2021 to be a good time to be a buyer. He believes that Bitcoin will hit $20,000, then it could pull back again to around $16,000, before going up above $60,000 by the end of 2021 due to the “network effect” with a pull of new buyers and lower Bitcoin supply.
"People are going to Bitcoin because there's 20 million Bitcoin that will ever be mined, 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," - said Novogratz.
According to the creator of a popular bitcoin prediction model Stock-to-Flow (S2F), who uses the Twitter name “PlanB”, the benchmark cryptocurrency will reach $100,000 by December 2021. The S2F model calculates the Bitcoin expected price in 2021 by considering its decreasing supply and growing demand. As Bitcoin is halved every four years, the supply is gradually diminishing and inflation is rising.
During the second halving in July 2016, the Bitcoin price was fluctuating at around $640. Seventeen months later Bitcoin surged to its all-time high of $20,000. If the pattern repeats, Bitcoin can reach from $100,000 to $288,000 by December 2021.
Analyst Mike McGlone from Bloomberg believes the cryptocurrency has not yet finished its upward momentum and sets the level of $170,000 as of the BTC price target for 2022. He argues that $50,000 is “a good 2021 target resistance” — a milestone that would result in an overall market cap of $1 trillion. McGlone argues that $10,000 now serves as critical support for Bitcoin — a remarkable achievement given how the cryptocurrency spent most of 2020 trying to break through this zone.
“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,” - said McGlone
In December one of the bank senior analysts think bitcoin could reach a high of $318,315.72 by December 2021 that’s just 90% of current levels and calling it ‘21st-century gold’. He explains his forecast by Bitcoin’s historical trajectory.
Tom Lee works for the cryptocurrency research organization Fundstrat. According to Lee's Bitcoin forecast, the cryptocurrency will break its all-time high in 2017 by reaching $25,000.Moving forward to 2021, Lee believes that the price of Bitcoin will be valued at $91,000.
“Bitcoin’s killing it this year – it's just crushing all other hedges and asset classes this year, but in 2021 I think Bitcoin could be the year of the fireworks... the best is probably yet to come”. – Tom Lee
Is Bitcoin a Good Investment?
It’s hard to predict whether this cryptocurrency will eventually prove to be a great investment or just a simple investment. Bitcoin is at the (very) “high-risk” end of the investment spectrum. The price of cryptocurrencies is volatile; some can go bust, others could be scams, and occasionally one may increase in value and produce a return for investors. There will be multiple cryptocurrencies that play a major role in the future of transactions. Bitcoin will always be the most trusted and stable cryptocurrency of them all.