Bitcoin has experienced an incredible second wave of growth. The most famous cryptocurrency has risen in price up to 800% in 10 months, and there are opportunities for further growth in 2021.
Since March 2020, Bitcoin has continued to grow. A relatively stable period was replaced by an increase in the value of cryptocurrency assets. January 8, 2021 marked an all-time high of $ 42,000 per 1 BTC. David Sailer is a veteran who has been working with Bitcoin since 2011. He believes that BTC will rise in price to six figures next year.
He names several reasons. Firstly, this is halving, a decrease in the remuneration of miners for mining BTC. Since May 2020, the figure is 6.25 BTC instead of 12.5 BTC. Another indicator of Bitcoin’s strengthening position is its recent integration into Cash App, Robinhood and PayPal.
Currency.com financial analyst Mikhail Karkhalev also admits a chance to reach the psychological threshold of $ 100,000 in the near future. He also points to PayPal, including the rapidly growing popularity of Bitcoin transactions in the system. Trading success also matters, including the high open interest in Bitcoin futures on the Chicago Mercantile Exchange (CME).
Karkhalev gives an objective explanation. Bitcoin’s turnover is getting lower. The demand is growing. Not only investors, but also professionals are interested in Bitcoin. This is the main difference from the first wave of growth in 2017, when only investors were interested in cryptocurrency. Under these conditions, there is no reason for a collapse to occur at least in the next 2 years.
In conclusion, he recommends buying BTC now, while the price has stabilized relatively, and even went down. This phenomenon is called correction, and it is natural against the backdrop of rapid growth. A correction is more of an indicator for the next stage of growth, and everyone who wants to profit from Bitcoin should be ready.
Artem Deev, head of the analytical department at AMarkets, supports colleagues in their opinion. “Does $ 100K sound like fantasy? Yes. But even a year ago, no one expected $ 40,000 for the stabilized Bitcoin, ” he says.
At the same time, Deev recommends to be careful when buying BTC right now. He believes that the correction has begun and will continue for some time. According to the expert, a fall to $ 20-30 thousand for 1 BTC is possible before further growth. A new round of growth in the value of cryptocurrency will be related to the attention of institutional investors and limited supply.
“Subsequently, Bitcoin will be equated to gold. The more crisis the world becomes, and the weaker the dollar becomes, the more profitable it will be to use BTC to protect funds from inflation,” he sums up.
Another opinion on the positive outlook for Bitcoin came from Victor Pershikov, Lead Analyst at 8848 Invest. He claims that growth will be sustainable, but it is important for everyone to focus on reaching $ 50,000 for 1 BTC. When this bar is reached, it is necessary to build new forecasts for the situation, since everything is still too unpredictable. For example, if people at the market start a massive sale, then a significant correction will begin.Victor conservatively estimates the likelihood of crossing the six-digit threshold in 2021. According to the expert, Bitcoin should become a trademark asset before this. Downturns in stock markets and global tensions are helping to boost growth, although little attention is currently paid to them. “$ 50-60 thousand dollars for 1 BTC in 2021 is possible, and then it will be seen,” sums up Pershikov. “Bitcoin is growing because inflation in the US is rising and commodity prices are rising. This state of affairs creates tension among investors, and the need for investment protection is growing. Also, significant bailout packages planned by Joe Biden will generate an influx of liquidity, and this will significantly support digital asset prices. “
