- Which direction will the price of Bitcoin take in 2021?
- Bitcoin to hit six-figures in 2021?
- Factors that will affect the price of Bitcoin in 2021.
2020 has been a remarkable year for Bitcoin. Bitcoin went from breaking its 3 year high of $20k to setting a new all-time high of $28,288.84. In this year also, the leading cryptocurrency has enjoyed the biggest share of institutional investments. Bitcoin has grown from a gimmick “in a bubble” to being a preferred store of value for many.
After enjoying massive success in 2020, the questions now are, What are the latest Bitcoin price predictions for 2021?
Bitcoin Price Predictions for 2021
The price predictions of Bitcoins usually come from skeptics who predict impending doom, optimists who predict outrageous prices, and analysts who predict prices based on research and previous patterns.
To get the most realistic price predictions, we will examine only predictions made from research and patterns. So, what are we to expect in 2021. The price of Bitcoin in 2021 will be greatly influenced by these factors.
A Major Correction May Be On the Way
Bitcoin, like every other asset, has to undergo a period of correction before an upward trend can continue. Citibank analyst Tom Fitzpatrick believes that Bitcoin will see ”unthinkable rallies followed by painful corrections.”
One of the major reasons why we should be expecting a correction is because of BTC’s monthly RSI. The RSI of Bitcoin is already over 85. Like every asset in the overbought zone, a price correction is only natural.
On the Flipside
- While Ethereum gaining value, analysts believe the altcoin could soar past $1,000 in the first quarter of 2021.
- Bitcoin rival, Dogecoin is also expected to rise in 2021. Analysts believe that the altcoin will gain a strong capitalization and consequently a concrete value per coin increase.
- In the last 7 days, newcomer, Folgory Coin has soared by over 11,000 percent.
2021 and Unthinkable Rallies
In May this year, the CEO of Morgan Creek, Mark Yusko, predicted that bitcoin could easily reach $100,000 in 2021 or 2022. When he made the prediction, Bitcoin traded at around $9,000 compared to the $26,850.58 it currently trades at.
The general theme for analysts is six-figures in 2021. We’re backing Bitcoin to hit six figures, or at the least double its current value at the end of 2021 because of these reasons.
1. Greater Mainstream Acceptance
Until 2020, Bitcoin had limited use cases. Only a limited number of people had access to Bitcoins, and an even fewer number used it in the real world. That narrative will change in 2021. Already we have seen PayPal open its doors to Bitcoin, Square launched Bitcoin trading, also Apple users got something similar to Lumi.
With Bitcoin now open on these major payment platforms, it is certain that there will be a greater mainstream usage of Bitcoin in 2021. The trend of more institutional investors is expected to be even bigger, thanks to the successes of this year. A greater public acceptance and use means Bitcoin could moon in 2021.
2. Government Involvement
Governments no longer look at Bitcoin as a simple gimmick that will die a natural death. China has announced plans to digitalize its currency, the Yuan. The United States has also proposed new regulations and hinted at the possibility of digitalizing its currency.
The approach governments from around the world take to regulate their crypto spaces will also be a determining factor. In November, the European Commission issued new guidelines “Markets in Crypto-Asset Regulations” MiCA, for the regulation of cryptocurrencies. So, by 2021, Europe should get a unifying regulatory guideline.
Bitcoin is bound to benefit from a more favorable regulatory environment and the integration of digital assets (including but not excluded to Bitcoin) into government operations. In all, 2020 looks like a stepping stone to what will be a memorable year for Bitcoin.