Bitcoin had a great year, rising more than 170%, however Bitcoin price predictions for 2021 that many analysts are posting are pointing to much bigger gains in the year to come.
First, let’s discuss Bloomberg’s outlook for Bitcoin. In The October edition of Bloomberg crypto outlook, analyst Mike McGlone predicts that Bitcoin is on its way to $100,000 by 2025, which would be more than a 400% gain. If we take an average of that 5-year growth it would put a price target of BTC at around $37,000 to $40,000 by the end of 2021. McGlone uses demand vs supply and technical analysis to come to this prediction. One more interesting point that is discussed in this analysis is that bitcoin is becoming a gold-like asset. This is not the first time Analysts are comparing BTC to gold. Earlier Iconic Investor Ray Dalio compared bitcoin to gold as well.
These signals coming from investors that BTC is becoming a digital gold can be an interesting point to forecast the price of BTC for 2021. As of writing this article, the whole Gold market capitalization is around $10 Trillion according to the World Gold Council. If BTC manages to add even just 1% of Golds value in the next year price of BTC will be going up at least 30% or more, and if Bitcoin gets to attract investors to invest around 5% of Gold market cap in the next year, we will be looking at $50,000 per BTC minimum by the end of 2021.
Now let’s discuss the most optimistic prediction of Bitcoin price. Recently we’ve all seen news like this: “Citibank Analyst Says Bitcoin Could Pass $300K by December 2021” floating around the internet. At first, we at MostTraded believed this prediction to be overly optimistic, however day by day this $300,000 price target seems more realistic. Bitcoin is getting more institutional recognition from the likes of Fidelity and MicroStrategy. Earlier this year Visa has issued debit cards with bitcoin rewards and recently they partnered up with BlockFi to offer customers bitcoin rewards Credit cards as well. Also, more and more billionaires are investing in BTC and talking about their interest in Digital coin on news. And last but not least, Bitcoin ETF’s are expected to be approved soon, which will open doors to millions of regular brokerage users to start investing in cryptocurrencies as well, which will bring additional hundreds of billions to BTC.
There are a lot of predictions for BTC price as you can see, ranging from $30k up to $300k for 2021, however one thing is true, Bitcoin is becoming popular and is entering mainstream investing portfolios and next year will definitely be very busy for cryptocurrencies. If you are bullish regarding price predictions for BTC for next year you can start investing in Bitcoin with our trusted partner eToro by clicking on the banner below.
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