Bitcoin will set a new price record in 2021 – experts are sure
By the end of the year, the price of MTC may fall to $ 12,000
Large funds and companies will continue to buy bitcoins in the coming year
International consortium of news organizations developing transparency standards.
Bitcoin has seen a skyrocketing price rise this week. On Thursday, November 19, the main cryptocurrency hit the $ 18,870 mark and is very close to new price records. However, on Friday morning, the value of the coin rolled back to the level of $ 18,210. Whether Bitcoin will set a new price record this year and how much the coin will cost in 2021, BeInCrypto asked experts.
Gleb Kostarev, head of Binance in the CIS:
– Bitcoin rally continues and the coin continues to break records of 2017.
November 2020 demonstrates that bitcoin is no longer very responsive to political changes in the world, but is still sensitive to economic unrest, which currently work in Bitcoin’s favor, strengthening its status as a defensive asset..
The main factors behind the growth of Bitcoin in the fall of 2020 include the following:
- Institutional interest. MicroStrategy and Square are investing part of their budget in BTC. These facts could potentially strengthen status of Bitcoin as a separate asset class, a purchase that many are afraid to miss. The growth could also be influenced by news of interest in Bitcoin from traditional financial institutions such as DBS, which offers a platform for trading digital assets for clients, and rumors that JP Morgan will launch a cryptocurrency storage service..
- Launch of PayPal custodian cryptoservices with potential reach of up to 26 million people worldwide.
- COVID-19. ABOUTno alternative safe assets could have occurred due to recent news amid the deteriorating situation with COVID-19. Many European countries began to re-lockdown, raising concerns about the status of these currencies and stock markets due to potential economic downturns.
- The DeFi Craze Decentralized finance (DeFi) is a financial service built on blockchain technology that offers users access to an open, efficient and … More from their historic peaks. This can be explained by the fact that private and institutional investors have rebalanced their portfolios towards relatively less risky cryptoassets such as Bitcoin..
With regard to forecasts for the next year, it is worth considering one, and in our opinion, the main point. The distribution of cryptocurrencies is still very low now. The higher it is, the more prerequisites for growth. Perhaps this growth will happen next year, and perhaps in a month, no one knows. But we can safely say that the potential and space for market growth is enormous..
Ivan Petukhovsky, EXMO co-founder:
– If we talk about bitcoin, then over the past 30 days the asset has shown the most impressive growth against the background of the rest of the cryptocurrency market, about 43%. Moreover, at a price of $ 16,000, bitcoin capitalization to $ 300 billion, which allowed bitcoin to take the 20th place in the list of the most valuable assets in terms of market capitalization according to AssetDash. Bitcoin overtook such companies as Home Depot, Verizon and PayPal in terms of capitalization.
If you consider the issue of investing in bitcoin, you should understand the investment horizon. The current price for a 3-5 year horizon looks reasonable, as if the current price were $ 10,000 or $ 15,000. But if we talk about the investment horizon until the end of the year, then the risk / reward ratio looks not in favor of the investor, given that bitcoin has grown by more than 40% in a month. The best advice would be to wait for the correction and buy at a lower price with a prospect in the region of $ 18,000 – $ 19,000 by the end of the year.
Trading with top altcoins looks effective from my point of view now. Firstly, traditionally, there is a certain cyclicality in the cryptocurrency market, when the decrease in the dominance of bitcoin in the total market capitalization is accompanied by an increase in the capitalization of altcoins, and the probability of bitcoin correction looks very realistic in the near future. Accordingly, during this week, the top liquid altcoins are already demonstrating good growth, catching up with the pace of Bitcoin. Investments in altcoins are also supported by the fact that their current prices are not yet at their annual highs and there is a significant growth potential by the end of the year..
If we talk about the prospects for Bitcoin for the next 2-3 years, then they are undoubtedly positive. What can such confidence be based on? One of the main reasons is the development of the adoption of bitcoin as a means of payment, as well as an investment asset. The postcoid period will already differ significantly from the period before it. We are confident that the trend of contactless transfers and payments will gain momentum, and the role of bitcoin in these processes will be a priority, as evidenced by the recent news that PayPal has added the ability to buy, store and pay with cryptocurrency in 26 million stores..
From the point of view of the investment component, the quality of a safe-haven asset will speak in favor of bitcoin. To combat the economic consequences of the crisis caused by the pandemic, central banks will resort to a number of stimulus measures, one of which will be the depreciation of national fiat currencies. Against this backdrop, bitcoin, with its deflationary model, will be an excellent alternative for preserving the value of savings, even for households, not to mention institutional players. Well, the third factor can be called the theory of cyclical growth of bitcoin.
If you pay attention to the exponential chart of bitcoin from the date of its foundation, then you can distinguish 3 cycles, each about 3-4 years long, each of which has a similar structure. According to this theory, we may already be at the beginning of a new wave of price growth, which will end with the establishment of a new all-time high in 2021. But the main recommendation for investing bitcoin for such a period of time is to distribute the investment amount into several parts, invest on rather deep corrections and not succumb to the influence of greed and fear. It is possible that already in 2021 we will see the price of bitcoin above $ 20,000.
Vyacheslav Orskiy, analyst of the new cryptocurrency exchange KickEX.com:
– In recent months, the media have regularly published messages about large-volume Bitcoin purchases by large investors and investment houses.
For example, we can cite the purchase of 10,000 BTC by Stone Ridge Holdings Group, which has about $ 13.5 billion in management. Or the fact that the co-founder of “Morgan Creek Digital” Anthony Pompliano increased the accumulation in the first cryptocurrency to 80%. It is worth noting the reports of the investor company Grayscale Investments “that the size of the capital in bitcoin is approaching the $ 10 billion mark, if it has not already reached this value.
Such active purchases by “whales” of course bore fruit and took away not a small amount of Bitcoin supply in the market, which in turn reduced the selling pressure on the price.
On the other hand, other factors also influenced the price, for example, the elections in the United States, where Joe Biden seemed to have won, which increased the risks of a decline in the price of the American dollar, since it is known that the Democrats, who is Biden, announced much more serious amounts to stimulate the economy, and this in turn and a much larger emission of new dollars.
Also worth noting is the speculative component. There are many margin tools that allow you to bet on a fall in bitcoin, as a result, liquidated short positions also push the price of bitcoin up.
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In October, we again see an update of the highs for open interest on bitcoin futures. So we see that historically, each such renewal of the maximums was accompanied by sales with panic sales and the liquidation of the positions of the traders. At the moment, the BTC price has stopped growing at $ 18,000 and is forming reversal patterns on intraday timeframes. Technical indicators are also showing high overbought levels. As a result, there are points in which it is worth considering a scenario with a correction, with goals up to the levels of $ 16,000 – 17,500. Where it might be interesting for many market participants to buy bitcoin. An alternative growth scenario, in my opinion, is possible after the price of BTC can still gain a foothold above the $ 18,000 level, which will lead to even more emotional purchases that can raise the bitcoin price to its all-time highs by the end of the year at $ 20,000.
Despite the fact that fundamental factors speak in favor of long-term growth, which is confirmed by the investment of “whales” in bitcoin, I do not think that expecting a repeat of the scenario of the end of 17th year will be the right option … Then we saw such a pump because of the excitement in the ICO field, where serious large budgets were spent on marketing and advertising everywhere, which caused such an influx of new participants. At the moment, this is not the case. Perhaps in the DeFi space. If bitcoin is able to overcome the $ 20,000 mark and the price consolidates higher, it will be possible to diagnose the renewal of historical highs and consider an upward scenario, the nearest targets for which will be within $ 24,000 – $ 25,000. If the BTC price tests the $ 20,000 level and returns to the old $ 4,000 range – $ 20,000, next year could be a year of correction for the bitcoin price, which has a chance to end at $ 11,000 – 13,000.
Sergey Khitrov, Founder & CEО Listing.Help:
– I would single out two main components of the current growth. First, over the last month, there has been a lot of positive news regarding digital assets. Paypal added the ability to buy cryptocurrencies, many countries have moved from simple discussion to piloting and testing the implementation of national digital currencies, plus China has successfully completed testing the digital yuan.
Also, over the past few days, news has been released about the successful trials of vaccines against coronavirus in America by Pfizer, BioNTech, Moderna. Both the stock market and the cryptocurrency market reacted to this news.
After bitcoin rallied due to this news, FOMO (Fear of Missing Out Syndrome) began on the market, and this is the second important reason. Many media outlets and bloggers started writing about growth and people started buying bitcoin with all their money. A similar situation was at the end of 2017, when the price of bitcoin reached its all-time high on such sentiments..
Taking into account the current growth rates, we do not exclude that this year we may see new highs. Indicative will be whether Bitcoin can pass its previous high of $ 19,900. It is highly likely that many crypto investors on the way to this level will sell the asset to take profit. Also, do not forget that many financial institutions end the reporting year and fix profits in December: this can also temporarily halt the growth of the first cryptocurrency..
Overcoming and fixing the price above $ 20,000 will be a positive sign for further market growth. In this case, in the first quarter of 2021, we can see the rate in the region of $ 30,000.
Vladislav Sopov, independent analyst:
– The reason for Bitcoin’s growth is a combination of three factors: institutional interest + FOMO + context. I urge everyone not to overestimate the role of institutions. They bought bitcoin step by step long before the rally began. For many of those, about whom it is customary to say “institutionalists are finally going to bitcoin” – this is fixed capital for a long time and there is no reason to regard it as a kind of revolution. FOMO – it’s clearer here, but, as follows from the analysis of the statistics of interest in Bitcoin and Ethereum in Google queries, this factor is also only gaining strength. Context – with fiat currencies depreciating – especially emerging market currencies, but also US dollars – people are prematurely beginning to perceive bitcoin as a defensive asset, “digital gold”. Which he is not! In a word, the reasons are complex, but we are at the very beginning.
Until the end of the year – bitcoin between $ 18,000 and $ 23,000.
Forecast for 2021.2021-2022 is the time set for a new Bitcoin price record by both extreme bulls (PlanB) and many moderate bulls (Michael van de Poppe). In reality, there is no basis for an accurate price prediction. Returning to the previous point about the reasons for the rally: we do not know how institutional interest will affect the market, we do not know how far the FOMO will go, we do not know how the context will develop, primarily in terms of the coronavirus crisis. I can only say that ATH will be updated, but it will definitely not be many times higher than the previous peak, as it happened before. The market has matured, its cycles are lengthening, and “parabolic growth” is getting harder and harder. Meanwhile, when compared with the previous rally, bitcoin managed to maintain its leadership, despite the abundance of more technologically advanced blockchains on the market. This means that the first cryptocurrency retained its value and increases it, and new records will be!
Irakli Dizenko, trader analyst at Binaryx:
– We are seeing growth during the year by almost 120%, which instills confidence in both new investors and holders of the first cryptocurrency to break through the historical value of $ 20,000. Sustainable growth can be directly related to large purchases of bitcoins by funds and companies from Wall Street. The second important factor is that over the past year, most cryptocurrency platforms have tightened the rules for verifying clients, which made it possible to attract new users. Also, do not forget that the number of complex derivatives such as futures or options on bitcoin has grown..
Until the end of the year, we will see increased volatility due to the fact that the price is close to its historical maximum and many traders will prefer to take profits before the New Year holidays. We can see a strong decline in the price up to $ 12,000.
As we saw, in 2020, large companies decided to invest in bitcoin. Most likely, this trend will continue next year. There is also a growing number of small investors who prefer to buy bitcoin over other cryptocurrencies. So, in the new year we will definitely see the price above the all-time high of $ 20,000.
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