Is Bitcoin BTC Worth Buying in 2021?

Bitcoin has had a legendary 2020, going by more than 180% and breaching past the $20,000, $21,000, and $22,000 marks. However, several believers, like Galaxy Digital CEO Michael Novogratz, believe that this is just the beginning. Novogratz feels that BTC will end up being as much as 55,000 or $60,000 by the end of next year. So is this misplaced optimism, or is this something legit? Let’s take a look.

 

Bitcoin’s epic rally

Bitcoin’s overall crypto market is currently around $42 billion and it exceeds JP Morgan's overall capitalization. This is extremely important since JP Morgan is one of the four largest financial institutions in the US. Bitcoin hit a new all-time high at $23,776 (on Coinbase) before retreating to $22,500. BTC has gained over 16% on a day-to-day basis.

Image: tradingview.com 

Institutions keep betting heavy on Bitcoin

MicroStrategy announced that they are looking to buy more BTC, having already accumulated $1.1 billion. However, One River Asset Management has emerged as one of the largest Bitcoin holders. Apparently, they have already purchased $600 million of Bitcoin. At the beginning of 2021, they plan on increasing their allocations to $1 billion.

One River Asset Management will hold its Bitcoins in with the Northern Trust. While the company already owns over $150 billion AUM, they started investing in cryptocurrencies following customer interest. Pete Cherecwich, president of asset servicing at Northern Trust, stated:

“This is just another evidence of how cryptocurrencies are being merged with the traditional financial industry. Earlier, Fidelity Digital Assets announced that it would allow customers to use Bitcoins as collateral for their cash loans.”

 

Reputable entities with incredibly bullish predictions

Scott Minerd, the chief investment officer of Guggenheim believes that Bitcoin's fair value is at $400,000. While speaking to Bloomberg TV, Minerd explained that his forecast is based on Bitcoin's limited supply and its current cost in relation to gold. He concluded that while Bitcoin and gold have a lot in common, BTC is grossly undervalued at this stage. Guggenheim has publicly announced in November that they have investments in Grayscale Bitcoin Trust.

The Winklevoss twins, who are the co-founders of Gemini and early Bitcoin investors believe that BTC could hit $500,000 as more people use it as a hedge for inflation instead of gold.

 

The final verdict

Bitcoin is the leader of the cryptocurrency market and it's just in the beginning stages. Having breached its all-time high levels, we could well be at the beginning of a major bullish rally.

Read More:

Bitcoin Price Analysis for 2021

The Ultimate Beginner’s Guide to Investing in BTC

Invest in Bitcoin: What Will Drive the Bitcoin Price In 2021?