The investor network holds a huge expectation price of bitcoin in 2021, the best-known cryptocurrency in the world, is again fascinating because of the solid return it has achieved up to now in 2020. Industry analysts assume that the current rally progresses and also that investor exposure should continue to climb when and when they see some pullback.
A Citibank leaked report titled ‘Bitcoin: 21st-century gold’ said that by December 2021 price of bitcoin may have surpassed the $3,18,000 mark. This means a 19-times rise to about $17 from the present amount.
Why you should hold Bitcoin in 2021
Apart from many ups and downs, BTC is still a profitable investment from the past few years and the average growth rate is more than 100% per year. In every 4 years cycle, BTC exceeds its prior All-Time Highs (ATH), last time it happened in 2017 where we saw a tremendous amount of returns within a very short time.
Bitcoin serves the purpose to exchange money over the internet and is controlled by an openly regulated and decentralized network, offering an alternative to the fiat money controlled by central banks. There has been considerable discussion on the way Bitcoin is valued and we are going to explore the prices of the blockchain for a more widespread embrace in 2021.
What to buy in 2021: Gold or Bitcoin?
Experts say that price of Bitcoin in 2021 could replace gold. Blackrock is the world’s leading manager of assets, and as of September, it held over $7.4 trillion in assets. He is now Blackrock’s Head of the Multi-Asset Strategy Division Global Allocation Investment Unit.
When asked about the price of bitcoin and gold and whether he is a bitcoin bull, Rieder said: Rieder said:
“But do I think it is a durable mechanism that could replace gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around.”
Thomas Lee, Head of Research at Fundstrat Global Advisors, commented that bitcoin is “killing it this year — it’s just crushing all other hedges and asset classes this year, but in 2021 I think bitcoin could be the year of the fireworks … the best is probably yet to come.”
Where do we expect Price of Bitcoin will be heading in 2021?
Ignoring the short-term downside push of the BTC, it will most likely hit the 10000$-9000$ next (in the medium-term perspective), That will confirm the bullish trend by making the higher highs and higher lows and that will be the beginning of the next bull run. Once that resistance will turn into the support price of Bitcoin will push towards the 30000$ region in the next 2 years of time frame.
(Refer to the image for a clear understanding of the bigger picture scenario).
When you consider how much more capital is going to be flooded into this market. It’s not a long shot by any means to see how price can be quadrupled and beyond ATM’s have been taken out. This means even if you got entries at the yearly highs, and you have a dollar-cost average for your investment for 2–3 years.
“You will still get profits from your investment, as history always repeats itself and the market always rise to the upside targets”
With a simple look at charts and the historical pattern of the cryptocurrency market, you can paint a bigger picture than any forecaster can do. You have the proven statistics of history carved in stone on your side, trust the process, it comes with the journey of adapting technology ahead of the rest of the world.
Forecast of Bitcoin in 2021
The virtual currency is more than five times as big in a year for Bitcoin holders, who include leading hedge fund and money managers. It’s a gamble that has drawn eyes to the investors who assume that the unpredictable blockchain is not a store of wealth like gold, but a risky commodity.
After January, price of bitcoin has risen by 160% boosted by high institutional demand and scarcity, as it is being bought on behalf of payment firms such as Square and Paypal. Bitcoin has reached just under $20,000 in December 2017 on its all-time record. It first came to zero in 2011 and last was $18,415 for trading.
It’s no longer a year’s time for moving from $18,000 to $100,000, says Brian Estes, the chief trader at Off the Chain Capital Hedge Fund.
“I have seen bitcoin go up 10X, 20X, 30X in a year So going up 5X is not a big deal.”
This forecast is based on a model that incorporates a stock-to-flux ratio that calculates product scarcity such as gold, between $100,000 and $288,000 by the end of 2021. He said that model has a 94% correlation to bitcoin’s price.
Tom Fitzpatrick from Citi Technical Analyst said last week that price of bitcoin could rise by the end of the next year to $318 000, citing its limited supply, ease of cross-border movement, and opaque ownership.
Neo predicts that by end of 2021, price of Bitcoin will reach $60,000-$80,000. Tempus Inc. currency trader Juan Perez had been unimpressed with the elevated forecasts even shocked, saying that the next year’s bitcoin jackpot at $100,000 would be a bet on the collapse of the international economy.
Pros and Cons of Bitcoin
Some of the perks of Bitcoin are that they are diverse portfolios and that popularity and availability are anticipated to develop. Persons may see that diversification will be attributed to investment portfolios, including Bitcoin or Altcoin assets. In the case of a big market slump or other turbulent activity in the future, it will help secure these savings accounts.
High fees, extreme uncertainty, and restricted multinational market usage are some of the major drawbacks. Owing to its unpredictable price of bitcoin volatility, bitcoin could not be an ideal retirement fund. However, some financial services providers also offer the alternative of investing in the cryptocurrency through autonomous pension accounts (IRAs).