At the moment, the profitability of Bitcoin in 2020 confidently exceeds the mark of 240 percent, that is, the cryptocurrency has become one of the most profitable investments in the world over the past twelve months.
At the same time, as we already know, some stocks on the stock market still gave more percent of profit. But all this will soon be a thing of the past, because very soon the world will celebrate the onset of 2021.
The journalists have collected the hottest predictions about the price of BTC in the new year. Thus, it will be possible to understand the mood that analysts and investors were imbued with.
What will happen to the Bitcoin exchange rate?
The main trend among experts is to predict the growth of the value of the main cryptocurrency up to six figures. Growth above 100 thousand dollars is quite real, billionaire Ray Dalio is sure. According to him, Bitcoin has every chance to compete with gold for the role of a “hard asset”, which will be the best rate in the face of growing inflation. Here is a quote from him, in which an investor shares his point of view. The statement is quoted by Cointelegraph.
We are in a flow of money and credit that raises the prices of most assets and distributes wealth in such a way that the system we used to think is normal is incapable of continuing to exist.
That is, the main argument in favor of the further growth of Bitcoin is the instability of the conventional financial system, from which many people simply want to insure themselves.
A crypto enthusiast under the pseudonym PlanB, the creator of the well-known Stock-to-Flow model, is confident that by December 2021, the value of Bitcoin will definitely cross the $ 100 thousand mark due to the growing demand with a fixed supply. Here is his line.
People ask if I believe in my model. To be clear, I have no doubts that Bitcoin is following the Stock-to-Flow plan and will certainly reach a price level ranging from $ 100,000 to $ 288,000 by December 2021.
Here, the final argument in favor of the forecast was the limited Bitcoin supply of 21 million coins. It will not work to increase this indicator or release the entire cryptocurrency in advance bypassing the plan – and this is what investors value.
Another cryptocurrency analyst, Willie Wu, called his “conservative” target for 2021. He recently stated that Bitcoin has every chance of jumping up to 300 thousand dollars. He came to this conclusion after analyzing the movements of coins on cryptocurrency exchanges. Wu believes that now more and more investors are withdrawing their bitcoins in order to store them for a long time in cold wallets.
And indeed it is. Here are the statistics of this indicator in the form of a graph.
Even more optimistic predictions are based on the argument that Bitcoin could challenge and eventually supplant gold as a de facto store of value.
Interestingly, some of the most optimistic predictions have come from traditional markets. In November, for example, an analyst at Citibank told clients that Bitcoin could reach $ 318,000 in 2021. Citibank Managing Director Tom Fitzpatrick also referred to “incredible Bitcoin rallies followed by painful corrections.”
Currently, Citibank executives believe BTC is in the midst of a bullish trend that appears to be taking place in a “well-defined channel.” And judging by its upper border, December 2021 could end at $ 318,000 for Bitcoin.
We do not undertake to make any bold prediction – moreover, hardly anyone now with high accuracy can predict the top of the bull run, if we do not take into account blind luck, of course. The only thing we are sure of is that the main cryptocurrency will definitely surprise everyone next year, and the blockchain asset industry is now much more mature than it was in 2017.
In addition, it is important to understand that with the current record 25 thousand dollars of the exchange rate, Bitcoin has no barriers to growth higher, since it has not yet been trite there, which means that there are simply no possible resistance lines. Accordingly, only the desire of investors to fix profits and the general climate in the cryptocurrency market and in the global economy as a whole will become the restrictions for jumping the BTC rate.