Five Bitcoin predictions in 2021
This year has been adventurous for Bitcoin investors as well as any spectators who are closely watching the cryptocurrency market. So far, the Bitcoin price has reached a new all-time high, doubling it’s 2017 record-breaking price of $20,000. At the time of writing, the world’s most valuable digital currency is trading at $34,491.35 after pulling back from its new all-time high of $41,946.74.
When the World Health Organization declared a global pandemic in March 2020, Bitcoin price dropped as low as $4,000. For holders and investors, it was a worrying experience of gains and losses. Meanwhile – for the spectators in the background – it was a thrilling financial show with shades of greens and reds.
Regardless of that massive crash, Bitcoin price robustly surged from its ruins to recover all the shed value in the next couple of months. In 2020, Bitcoin displayed maturity and resilience; not surprising for a currency that has been trading for more than a decade. In 2021, Bitcoin price is expected to soar even further upwards as it proves its worth as an asset class. Below are the key Bitcoin trends to anticipate in 2021:
Bitcoin will become more mainstream
Everyday life use of Bitcoin has been a cost and effect dilemma. Not very many people across the world use or accept Bitcoin. The reason being, well, because very few people use or accept Bitcoin as a means of payment.
Nevertheless, in 2020 we witnessed a remarkable development in adopting the world’s largest cryptocurrency by market cap. Leading fintech firms – such as Jack Dorsey’s Square – invested $50 million in Bitcoin, and global payments giants – like PayPal – incorporated crypto capabilities for their users. This widespread endorsement has hugely contributed to Bitcoin’s massive adoption coming into 2021.
It’s anticipated that the positive mainstream adoption will progress in 2021. Major financial players are expected to join the Bitcoin revolution, and big players to enable Bitcoin payments. Big banks are expected to introduce custody services to hold Bitcoin and other digital assets on behalf of their clients.
Competition from central monetary authorities
In late 2020, the Bank of International Settlements published a survey report suggesting that more than 80 percent of central banks worldwide are working on some digital currency. So far, China is the only nation to have made huge strides towards the transition to a digital currency than any other country.
Notably, just a few weeks back in Suzhou’s eastern Chinese city, 100,000 residents were rewarded with 200 digital Renminbi each ($30) in a lottery. The reward was distributed through a digital wallet. Notably, the winners were requested to link their wallets to their bank accounts. Besides, they were asked to spend the funds within a few days before they disappear, an excellent way to promote digital renminbi and encourage its use.
As the Chinese government transitions to nationwide digital renminbi adoption, the demand and interest for Bitcoin will drop. Similar digital currency experiments may take place in various other nations in 2021.
Will Bitcoin price rally continue in 2021?
The record-breaking Bitcoin bull-run which commenced in late 2020 is likely to continue into 2021 going forward. The price of Bitcoin recorded a new ATH early in January 2021 after hitting $41,000 for the very first time. Experts and analysts anticipate the top cryptocurrency to end the year having hit the $50,000 price mark.
Famous figures in the cryptocurrency space have made bold Bitcoin price predictions for the near future. According to Tim Draper of Draper Ventures, the BTC price will hit $250,000 by the end of 2022, or early 2023. The Bitcoin bull stated that the currency could place all workers under the same platform where the worth of 1 BTC will remain 1 BTC, unlike the dollar, which is losing its value.
Moreover, a leaked CitiBank report in December 2020 suggested that one of the bank’s chief analysts thinks the Bitcoin price will possibly hit $318,000 by the end of 2021. The Immediate Edge predicted that Bitcoin price could hit $100,000 by the end of 2021. These bold predictions indicate how much confidence firms and individuals have in the top cryptocurrency.
Even though nobody knows what the price of BTC will be at the end of the year, many are confident that the bull market is here and will likely continue.
The regulation will come into sharp focus
Away from the price, one should bear in mind that the governments and central banks worldwide will be closely monitoring Bitcoin’s swelling market capitalisation. Recently JPMorgan’s chief stated that the United States government could introduce fresh new barriers for Bitcoin if the cryptocurrency keeps growing bigger and bigger.
Perhaps Bitcoin enthusiasts tend to disregard the anonymous nature of Bitcoin and other cryptocurrencies, but to the authorities this is a big deal due to its potential use in committing fraud. President Joe Biden’s new administration is likely to develop a new comprehensive regulatory framework, but there it’s unlikely that Bitcoin will be given any favours.
Bitcoin will continue threatening gold as the world’s reserve asset
One heated topic of discussion throughout 2020 was whether Bitcoin would continue eating up gold’s market share. According to experts and market analysts, Bitcoin will continue rivalling gold as a reserve asset because millennials and Generation Z prefer BTC as a safer digital asset. For those who are gold fans, its attraction is obvious. The price of BTC would have to rally by nearly five folds too, to match the $575 billion valuations of private gold held in gold bars, according to JPMorgan Chase.
It is evident that gold has existed for ages now, and it is going nowhere. However, the past perhaps is of small importance compared to what is to come.
Nobody is sure what the price of one Bitcoin will be by the end of the year. New articles are published regularly on how the Bitcoin price will go through the roof, or how it will drop to devastating lows. Regardless of all this, the benefits of Bitcoin hugely exceed the disadvantages and risks. A decade ago, Bitcoin investment was an opportunity of a lifetime, and still might be today.
One does not have to buy Bitcoin to become a Bitcoin investor. One can take advantage of CFD trading, and venture into the lucrative Bitcoin business. The emergence of automated robots has made CFD trading easier for beginners. Immediate Edge is considered to be a reliable crypto CFD trading platform.
The editorial unit