With Bitcoin starting a new rally, several cryptocurrency players are predicting that the cryptocurrency will reach new all-time highs by the end of the year. According to cryptocurrency trading simulator Crypto Parrot, 65% of 55 cryptocurrency hedge funds predict that Bitcoin will be trading between $ 50,000 and $ 100,000 by the end of 2021.
21% of respondents estimated the price of bitcoin at the end of the year in the range of $ 100,000 to $ 150,000. Despite the fact that bitcoin is experiencing a short-term rally, only 1% of hedge funds predict that the asset price will be below $ 50,000. conducted in the first quarter of 2021 by Elwood Asset Management with the participation of 55 hedge funds, representing about 30% of all cryptocurrency hedge funds.
63% of hedge funds believe that the capitalization of the cryptocurrency market will reach a value of $ 2 to $ 5 trillion. About 21% predict market capitalization of between $ 1 trillion and $ 2 trillion by the end of the year. Another 11% estimate market capitalization in the range of $ 5 to $ 10 trillion, 2% are betting on $ 10 trillion.
Most hedge funds remain optimistic about the BTC price reaching $ 100,000. Bitcoin was on the rise earlier this year, targeting $ 100,000 amid an influx of institutional investors.
As the cryptocurrency market continues to evolve, this sector is likely to continue to attract more organizations. The inflow of institutional money will further increase the asset’s market capitalization.
Despite the asset having corrected nearly 50% from its record price of $ 64,800, Bitcoin has shown its resilience. After the repression in China, the asset showed a short-term pullback, but now we again see a gradual movement to record highs.
While individual countries prohibit cryptocurrency transactions, including mining, El Salvador became the first nation in the world to declare bitcoin a legal tender. Several South American countries are expected to follow suit, and digital currencies will increasingly be seen as a defense against inflation and money depreciation.