10 Big Predictions for Bitcoin in 2021:
Bitcoin has been here before, more than once. Back in 2017, we saw Bitcoin surge and burst through the $20,000 price barrier. Investors celebrated, but the bull run was over in the blink of an eye, and the Bitcoin price tanked.
By the end of the year, the cryptocurrency was trading at $4000, and all the euphoria had evaporated. This time there is a lot of optimism, with investors predicting that Bitcoin won’t see a decline like the one it witnessed in 2017.
Bitcoin is also attracting considerable institutional interest, with investors predicting that the cryptocurrency will see a sustained increase in value. So, with all this in mind, here are some Bitcoin predictions for 2021.
10 Bitcoin Price Predictions For 2021:
Bitcoin Prediction #1: Bitcoin Could See A Fall Similar To The One In 2017
There is a feeling of deja vu among investors regarding the stellar performance of Bitcoin.
Investors are divided when it comes to Bitcoin sustaining its growth or experiencing a dramatic fall in price. A survey conducted by Finder.com found that 52% of the respondents believed that Bitcoin could experience a fall in value similar to 2017 and lose more than half its value. However, some experts believe that this price rise is here to stay, thanks to factors like institutional interest.
Read More: What Will Drive the Bitcoin Price In 2021?
Bitcoin Prediction #2: The Bull Run Could Last A Lot Longer
Investors and experts believe that the current bull run is not just a flash in the pan and could last a lot longer. Bitcoin is predicted to continue increasing in valuation for most of 2021, some experts believing it could touch $100,000 by the end of 2021 and $300,000 by the end of 2022.
Bitcoin Prediction #3: Bitcoin Will Continue To Threaten Gold As A Store Of Value
Bitcoin will continue to threaten gold as a store of value in 2021. Bitcoin is more functional than gold since it is traded digitally. Gold saw considerable losses in 2020, losing almost 9% since July.
Bitcoin, in the same period, has gained 65% value. Bitcoin is also gaining popularity among mainstream investors and financial institutions. Millennials also prefer Bitcoin as a store of value rather than gold. The rate at which Bitcoin is gaining value could replace gold as a store of value entirely, although that is not likely to happen immediately.
Bitcoin Prediction #4: Bitcoin Predicted To Lose All Its Value
Some Bitcoin predictions point to a more dire outcome that the cryptocurrency will lose all its value. Some investors like Jeff Schumacher, BCG Digital Ventures founder, predict that the value of Bitcoin could fall to zero.
The belief is that Bitcoin is a great technology but not a currency. This could be an extreme prediction because Bitcoin has continued to appreciate in value.
Bitcoin Prediction #5: Stock-To-Flow Forecast On Track
The Stock-To-Flow forecast is an indicator that has met with some scepticism, however according to the model’s creator, Bitcoin’s Stock-To-Flow model is on track. Plan B predicted that Bitcoin would touch $100,000 by the end of 2021 and make a push for more gains in 2022. The cryptocurrency seems to be on track for settling into a six-figure valuation.
Bitcoin Prediction #6: Institutional Investors Could Bump Up The Price
After years of scepticism, banks and financial institutions are opening up to Bitcoin. The institutional interest could drive up the Bitcoin price significantly in the coming year. Coinbase reported that in 2020, its institutional asset base rose from $6 billion to $20 billion.
Read Also: How to Invest in Bitcoin 2021
Bitcoin Prediction #7: Bitcoin Could Break $300,000
According to experts, Bitcoin saw record increases in value in 2020, and this trend is set to continue. We could see Bitcoin break the $100,000 barrier by the end of 2021. Some predictions have Bitcoin going up to $300,000 by the end of 2022.
Bitcoin Prediction #8: Institutions Will Continue To Adopt Bitcoin As A Reserve Asset
Financial institutions are converting some of their reserves into Bitcoin. We are likely to see more institutions do the same in 2021. JPMorgan Chase recently announced that it had purchased $100 million in Bitcoin. Microstrategy Inc also announced the purchase of $425 million in Bitcoin. Other companies are following suit, which shows how much interest Bitcoin is generating.
Bitcoin Prediction #9: Bitcoin Will Continue To See Mass Adoption
Bitcoin is gaining acceptance as a mode of payment. Platforms like PayPal have announced that users of the platform will be able to buy and sell bitcoin and make purchases using bitcoin. This announcement has given Bitcoin access to 350 million users who use PayPal as a payment platform. PayPal’s competitors have also made similar announcements increasing Bitcoin’s utility as a mode of payment.
Bitcoin Prediction #10: Bitcoin Will Lead The Charge Of Cryptocurrencies To The Global Audience
Compared to 2017, experts are now talking about Bitcoin in a different tone. Corporations, investors, and others are looking to Bitcoin to diversify their portfolios. This brings mainstream adoption much closer, and factors like the weakening Dollar and the pandemic have made Bitcoin an asset in demand.
Most Bitcoin predictions hold that the premier cryptocurrency is set to continue its rally into 2021. The year will see considerable interest in Bitcoin, from both investors and from regulatory authorities. It is clear that cryptocurrency will see an increase in the rate of adoption, which will only drive the Bitcoin price higher. With experts predicting a record-breaking year for BTC, all we can do is wait and see how it unfolds.
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