Bitcoin seems to be in the spotlight as of late. Crypto traders are eager to get their hands on their piece of the Bitcoin pie. Which also has many wondering, what will Bitcoin be worth in 2021. At the end of 2020, despite all that has happened and a down economy, Bitcoin is as high as it's ever been to some extent. Will it go even higher in 2021? What can investors in Bitcoin and cryptocurrency in general expect in the coming year? In this article, we think about what Bitcoin will be worth in 2021, making predictions based upon investor insights and observations.
Some Bold Bitcoin Projections
While some say bitcoin could get as high as 50k in 2021, others are taking it even further. Some of the predictions for Bitcoin in 2021 have the cryptocurrency going crazy. One Bloomberg strategist puts Bitcoin at almost 200k. For crypto investors, the future seems pretty bright. But will Bitcoin go that high in the next year? Could it potentially drop in value as it has in the past? It is after all a more volatile investment than some more traditional assets. Most experts, however, are doubtful about a Bitcoin price drop anytime soon.
Understanding Where Bitcoin is Now
Ready to reach new all-time highs, Bitcoin is giving many investors hope that its value will see a consistent increase (if not a dramatic increase/) in 2021. As it is the predominant cryptocurrency over other altcoins, Bitcoin has its position and track record to fall back on here. By the end of November, Bitcoin was hovering around 19k. From early October, this upward trajectory in Bitcoin's value represented a 90% increase. Eye-opening for many investors, to say the least.
The last time it was at 20k was almost three years ago. And as we enter the holiday season it is currently priced at over 22k. For cryptocurrency investors this means that projections for next year, as far as what Bitcoin will be worth in 2021 are very enthusiastic; in fact, some are likening Bitcoin to the modern-day equivalent of gold. So why is Bitcoin poised to climb to record values…Below are just a few of the reasons for potentially explaining this phenomenon?
Increased Institutional Investor Demand
Many who had previously shunned Bitcoin as a passing anomaly are now viewing it as that which is here to stay. Especially among the younger generations, Bitcoin investing is a commonplace reality versus a to-be-avoided risk. Because also, more and more millennials and Gen Zers have taken to digital forms of payment, a more expansive Bitcoin adoption seems inevitable in coming years, if not in the coming year.
Again, many do see Bitcoin as eventually replacing gold in some ways. Even if it doesn't totally usurp gold's crown but rather crowds it out a bit, this could mean a tremendous increase in Bitcoin value—up to triple the value potentially. To this end, many experts have said that Bitcoin's boom in 2020 was the result of more institutional investors finally believing and buying in.
PayPal and Square are On Board
PayPal and Square are among the top payment processors in the world. And as of 2020, both started allowing users to sell and buy Bitcoin from their accounts. This was of course a huge boon to the cryptocurrency. Square also started holding part of its cash in Bitcoin, buying approximately 50 million dollars' worth.
Additionally, Fidelity Investments has since created its very first Bitcoin mutual fund. Yet another indication that the cryptocurrency giant is not only here to stay, but geared to grow by leaps and bounds in 2021.
Bitcoin is Breaking Barriers
There's no question about it, with as high as Bitcoin has gotten just in the past two months what Bitcoin will be worth in 2021 only stands to be seen. It is continually breaking barrier after barrier, and in doing so attracting more and more investors. When investors grow more confident, the market as whole gains in confidence, and given Bitcoin's global reach, its potential value could certainly be more than anyone thought.
Predicting Bitcoin Pricing in 2021
Generally speaking, analysts tend to run the gamut when making any such financial predictions. Some offer more conservative takes while others aren't afraid to make that leap and suggest rather bold predictions. When it comes to Bitcoin, however, most experts are in concurrence that the price of the crypto coin is going to go up—big time. And many are also in agreement that as noted, Bitcoin will eventually come to replace gold.
So how high exactly do financial experts and analysts predict that Bitcoin will go in 2021…Below are three predictions regarding what Bitcoin will be worth in 2021.
Prediction #1: $65,000
Billionaire investor Mike Novogratz foresees that Bitcoin will rise as high as 65k in 2021. Before going up this high, however, he does predict a modest drop in the months to come before it spikes. Novogratz sees the cryptocurrency exceeding the 60k mark by the end of 2021.
Prediction #2: $170,000
A Bloomberg strategist puts Bitcoin at 170k in the coming year. The reason for his prediction: the analyst believes that Bitcoin is not anywhere near done with its upward movement and is only getting started. Reasoning that back in 2019, Bitcoin finished at a mere seven thousand and is now at over 20k, he asserts that investors should only expect even great increases percentage-wise during 2021.
Prediction #3: $318,000
A Citibank analyst sees an even more promising future for the cryptocurrency in 2021. He predicts Bitcoin legitimately skyrockets to a whopping 318k next year. Looking at a historical pattern in terms of how Bitcoin has risen and fallen over the years since its inception, the Citibank analyst contends that patterns here are bound to repeat themselves. And just as Bitcoin saw massive growth during 2011, the same stands to be true for 2021.
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