Considering we’ve already seen a steep increase throughout January alone, only time will tell how accurate this projection is. A senior Citibank analyst, Tom Fitzpatrick, referred to Bitcoin as ‘21st century gold’, an echo of the asset’s status as ‘digital gold’.
The CEO, who launched the pioneering deVere Crypto app in early 2018, goes on to say that the current coronavirus pandemic will also play a significant role in supporting Bitcoin prices. The historic Bitcoin halving event next month will boost its price – but other key drivers will have a more significant, longer-term impact. The prediction is not precise, and the exact time and date of BTC achieving this mark is not known, although, judging from past behavior, this is to be expected in 2021. Bitcoin price prediction for the post-halving period remains the same, with experts around the world expecting a major surge. The stock market is one giant bubble and company valuations are too high. Meanwhile, bitcoin offers a much more compelling outlook that creates the potential for further growth. This implies the next peak for bitcoin could be 19,764 times 8, or $158,112.
In November 2017, John McAfee, a technologist and entrepreneur who is associated with McAfee Antivirus, predicted on Twitter that Bitcoin would reach US$1 million by the end of 2022. He confirmed that he was sticking by this bet multiple times, reiterating his wager on Twitter in February 2018 and then informing Newsweek in August 2018 that he had not changed his mind. “While many expect the bitcoin rally to continue in 2021, I’m more concerned with what the Biden administration could mean for cryptos,” said Jesse Cohen, a senior analyst at Investing.com. The combined market capitalisation of all cryptocurrencies is now more than $850 billion, according to CoinMarketCap, making it more valuable than Facebook. It is also not the only major cryptocurrency to experience massive gains in recent months. With the notable exception of Ripple , every one of the top 10 most valuable cryptocurrencies have risen in value by at least 10 per cent over the last week. Bitcoin currently has a market cap of around $600bn, roughly one twentieth that of gold.
Bitcoin Price Prediction: A Drop To $26,000 Seems Possible
However, the fundamentals responsible for this move did not come from BTCUSD itself, but from other external factors. Let us look at what these factors are and how they will play a role in the price outlook for Bitcoin in 2020. “In this time of economic turbulence, the growing consensus that Bitcoin is becoming a flight-to-safety asset has further strengthened,” he notes. In 2012, the number of new Bitcoins issued every 10 minutes fell from 50 to 25. It also comes ahead of only the third-ever Bitcoin halving event in May. It comes as the Bitcoin price has surged around 12 per cent over the last week and 6 per cent Monday – outperforming almost all the major indices. This is the prediction from Nigel Green, the CEO and founder of deVere Group, one of the world’s largest independent financial advisory and services organizations.
For the moment, the market remains highly volatile, with BTC price surging up and down by $500 almost on a daily basis. However, with Bitcoin halving approaching, the current growth is still only a fraction of what is expected to arrive. Coindesk had a warning for investors with a note that previous halvings did not always spark immediate increases – referencing 2016 when “halving was followed by a notable price drop”. And some analysts have suggested the cryptocurrency could be on the verge of a comeback similar to record highs of 2017 following the halving event.
Simply add our WhatsApp number to your contacts (+ ) or click here and reach out to us from Sunday at 5pm EST to Friday at 5pm EST. As with 2017, major market movements like these will likely attract greater attention and scrutiny from regulators, which could prove a big test for the latest run. Trading crypto insights from the heart of the industry – the platform that delivers solutions and liquidity to institutions.
In January, Saxo Bank analyst Kay Van-Petersen has predicted Bitcoin will cross new all-time highs of between US$50,000 and US$100,000 before the end of 2018. Van-Petersen is also among those who previously predicted we would see US$10,000 before we reached 2018. In a June 2014 public auction, Draper bought 30,000 bitcoins from a stash the US Marshals Service had seized from the Silk Road darknet marketplace a year earlier. The coming 2020 halving, coupled with an increase in demand, could drive the Bitcoin price towards the US$250,000 mark.
However, when Bitcoin bottomed out in 2015, it enjoyed a very strong advance, Brandt said. If history were to repeat itself, the digital currency could enter a parabolic bull market after falling sharply in 2018.
What Factors Affect The Price Of Bitcoin?
Bitcoin has entered a new bull market, which can be observed through on-chain metrics, institutional investment inflows, and a booming retail adoption. That said, making a precise Bitcoin price prediction for 2021 is not an easy task. The primary cryptocurrency will likely follow its historical price dynamics, but in a more subdued manner because of its maturity. Regardless of the inherent risk incryptocurrency trading, one thing for sure is that Bitcoin will rally in 2021. He mentioned that while many analysts are citing the upcoming halving when making price predictions, Sing believes that “unforeseen” circumstances will help drive the cryptocurrency above US$20,000 in 2020. He pointed to Facebook’s Libra and how the announcement of the proposed payment system affected the markets, which included a rise in Bitcoin’s price.
Finally, bitcoin is no longer an asset that exists solely in the digital universe. Instead, bitcoin futures trade alongside other commodities on the Chicago Mercantile Exchange. Institutional investors are taking a bigger interest in bitcoin and the broader cryptocurrency industry. The last week has seen cryptoasset firms work hard to act against bad actors in the space, while analysts have made increasingly bullish price predictions ahead of Bitcoin’s upcoming halving event.
Unfortunately, it wasn’t to last, and by 2014, its price had fallen to $350. Its second major price jump would prove to be far more of a breakthrough.
When new altcoins enter the market, or other high-ranking cryptocurrencies start to attract high levels of investor interest, it can cause traders to start focusing on alternative forms of crypto. The Bitcoin hard-fork is a third generation cryptocurrency that many people believe is superior to BTC, as it was designed to solve some of the problems that plague the king of cryptocurrency. With such wildly different predictions, it can be hard to know what the most likely outcome is (which is precisely why cryptocurrency investing is such a risky endeavour!). If these bitcoin price predictions are correct, it means we’ll need to experience an unprecedented level of growth in the next few weeks. You might think this level of optimism is extreme, but given the fact that investor interest is at a record high, it’s not completely impossible. Looking ahead towards the rest of the year, DigitalCoinPrice believes that Bitcoin will peak at a yearly high of $103,563.76 in May, before dropping back down to $73,970.84 in June.
None of the forecasts that we included in this article expect to see a period of rapid decline in the near future, with only DigitalCoinPrice predicting that the price of Bitcoin will fall after 2023. If you’ve been looking for a reliable Bitcoin price prediction for 2021, 2022, and beyond, we hope that you’ve found this article useful. Although it’s impossible to predict with total accuracy, analysing the past performance of the crypto is a key way in which expert investors can make future projections. According to DigitalCoinPrice’s predictions, the price of Bitcoin will peak in 2023.
Is Bitcoin A Good Investment?
He has a wealth of experience in equities, currencies, commodities, and global macroeconomic issues. He has also published for prominent financial publications like SeekingAlpha, Forbes, Investing.com, and Marketwatch. Crispus graduated with a Bachelor’s of Science in 2013, an MBA in 2017, and is currently working on an MSc in Financial Engineering from WorldQuant University. When he is not trading and writing, you can find him relaxing with his son. Therefore, in the near term, there’s a possibility that the BTC/USD will fall to 26,000. However, a move above the all-time high of $40,000 will invalidate this Bitcoin prediction.
- The current inflation of the Bitcoin network stands at 1.8% and will continue to decline as more Bitcoin mining reward halving occurs.
- The employees of FXCM commit to acting in the clients’ best interests and represent their views without misleading, deceiving, or otherwise impairing the clients’ ability to make informed investment decisions.
- However, with Bitcoin halving approaching, the current growth is still only a fraction of what is expected to arrive.
- This will make it much easier for you to contextualize the current cryptocurrency trends and, ultimately, attempt to make the most accurate Bitcoin price predictions.
- He noted that in the decade that it had been around, Bitcoin had only been valued above US$10,000 approximately 3% of the time.
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Mr Pal, who predicted the 2007/8 Financial Crisis, wrote in the April report for his research service Global Macro Investor that in the midst of stock markets crashing, bitcoin could become a safe haven asset similar to gold. The immediate knock-on effect will be that vast numbers of miners will turn off their machines and close down their operations, as it will no longer be profitable for them to mine the cryptocurrency. Price predictions for the coming months are complicated by the ongoing coronavirus pandemic, which has wreaked havoc on the global economy. Bitcoin is now less than two weeks away from its next halving, and analysts are once again saying that another rally is about to happen. This time, the bull run it triggers could dwarf anything that’s come before, some have claimed. cryptocurrency had undergone a rare event called a halving, which some analysts claimed had a profound effect on the market.
This number will halve to 6.25 bitcoins per the protocol that guides the cryptocurrency. What makes Draper interesting to Bitcoin enthusiasts is his so far accurate predictions of the digital currency’s price moves. “If you actually abstract away from the substance of the regulation, what is a positive sign regardless, is that regulators are spending time and effort and brainpower on this,” Sokolin says. Bitcoin and crypto are being domesticated and given a new sheen of legitimacy. We expect to see BTCUSD trading anywhere from 10,000 to 13,000 at this time, but only if the institutional players get involved. If this is not the case, then we may have to deal with range-bound prices that spill on from Q3 to Q4 2020. $8,800 to $11,000 may be a reasonable price range, but a shock drop to $7000 and back up again cannot be ruled out.
Over the next two years, its price will continue to climb, before falling again in the run up to 2026. Bitcoin hit its ATH of $20,000 in 2017 after a period of rapid inflation. At the time, this growth was unprecedented; now, we’ve seen it happen twice. Although 2018 saw the price of Bitcoin crash back down to $3,300, it has never returned to its pre-2017 levels . With a similarly bullish approach, the Bitcoin advocate and venture capitalist Tim Draper has predicted that the Bitcoin price will reach prices of $250,000 by 2023 — a prediction he first made in 2018 and has stuck to ever since.
If it is so , then the market is experiencing a culmination, and in the future a large-scale correction is possible to one of the lines of the ascending channel, followed by a rebound . Since the start of the pandemic panic of March 2020, the TOTAL index, which takes into account all cryptocurrencies, has grown by almost 1000%. The number of Bitcoin tokens that have already been mined is over 18.5 million .
Bitcoin Price To Rocket? Experts Predict ‘exciting’ Comeback Like 2017 Bubble After May 12
Bitcoin peaked near $20,000 in late 2017 and hasn’t come close to reclaiming its highs since then. But give it some time, and the digital currency will reclaim its all-time highs and then increase in value five-fold to $100,000, according to News Blockchain. “Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering. Britain’s Financial Conduct Authority warned investors of the risks that come with bitcoin following this week’s slump. Just last week, Mr Pompliano predicted that bitcoin will one day reach a value of $1million (£734,000). Bitcoin “halving” is when the amount of the cryptocurrency being ‘mined’ by users is slashed in half every ten minutes. Morgan Creek Digital co-founder Anthony Pompliano predicted that by the end of 2021, the cryptocurrency would hold a value of $100,000 (£73,000).
DigitalCoinPrice doesn’t expect the price of Bitcoin to fall below $70,000 at any point in 2021 and believes that Bitcoin will peak at a yearly high of $103,563.76 in May. With a current market capitalization of $642,238,803,752 and a price of $34,620.45, Bitcoin has far outstripped its previous all-time high of $20,000.
By cutting the supply of bitcoin in half, the idea is to ensure its scarcity and prevent extreme inflation. Bitcoin halving (also sometimes known as ‘halvening’) is an event that’s designed to control the circulation of Bitcoin tokens and make the cryptocurrency more scalable. Because the maximum supply of Bitcoin is capped at 21 million, the halving is set to occur each time 210,000 new blocks are added to the blockchain, something that roughly equates to once every four years. This process means that the reward for mining new Bitcoin blocks is slashed in half, slowing the pace at which we’ll max out the supply.
The daily chart shows that the Bitcoin price rally has lost momentum this week. The price is between the first and second resistance levels of the standard pivot points. Third, Bitcoin price rose because of the overall Fed policies that brought interest rates to zero and the vast quantitative easing. Considering the factors surrounding the Bitcoin market and the financial market at large, we expect a continuation of the parabolic bull run into 2021. This year was a big year for institutional adoption and investment in Bitcoin, as corporations seek out hedging assets amid financial crisis fears.