The crypto market is continuing to grow after a strong start in 2020. 2021 might be no exception. While Bitcoin and Ethereum are experiencing a dip right now, both have been hitting all-time highs in the last few weeks. Are there any signs of how Bitcoin and other cryptocurrency prices will change in 2021?
Despite negative headlines, the world's most popular digital currency was predicted to test $20,000 again despite some fears that it would fall. It is back in fashion after its rally to the all-time highs and beyond.
The moment is filled with superlatives. Bitcoin has risen four weeks consecutively and is currently on pace for its second month of gains. It has experienced its fastest 21-day gain since February, when it was climbing towards a record.
Despite criticisms about the environmental impact of cryptocurrency, regulators are promising more severe measures against it. However, digital money is still moving ahead despite these threats. China is one of the countries that has cracked down on crypto mining.
Predictions of experts
What will Bitcoin look like by 2021? This question was posed by 35 financial experts for Finder. The majority of panelists predicted another strong year, particularly for Bitcoin. Experts forecasted a Bitcoin price of US$94,000.967 by the end of 2018.
Comparatively, the panel predicted that Bitcoin would trade at US$51.951 by 2021.
The panel also believes that BTC could surpass US$100,000. On average, the leading virtual currency is expected to reach US$107.484 by 2021.
Samantha Yap (CEO of YAP Global), a panelist, explains how institutional adoption will continue to push Bitcoin upward.
It's interesting to see that very few panelists believe Bitcoin's value will fall below US$60,000 in the next year. Lee Smales (associate professor of finance at University of Western Australia), made the lowest prediction with a year-end value of US$25,000. Other panelists forecasted a Bitcoin price between US$40,000 to US$56,000 by 2021.
Martin Frohler from Morpher believes that BTC will be the future and will surpass $250,000 by 2021.
Bitcoin will eventually replace gold and bonds as the ultimate store of value. Frohler stated that Bitcoin will eventually replace bonds and gold.
The panel projects that Bitcoin will reach a price of US$360.179 by 2025. One in seven respondents (14.29%) predicts that Bitcoin will reach $1,000,000 by 2025. More than a third (35.71%), expects it to reach $500,000 before 2025.
Bloomberg Crypto Outlook
Bloomberg's Crypto Outlook has provided recent predictions about Bitcoin's future price. This report examines the performance of various cryptos in the coming months.
It is possible that Bitcoin will see major growth in 2021. The report shows that the crypto market will likely rise to $100,000 in 2021, rather than declining to $20,000.
Bloomberg doesn't expect just Bitcoin to rally this year. The publication predicts that crypto prices will rise in the near future. Similar trends are likely for other digital assets such as Ethereum (ETH to USD).
Prediction of a billionaire venture capitalist
Despite Bitcoin's volatile value and worries about its energy consumption, billionaire venture capitalist Tim Draper predicts that the crypto will surpass $250,000 by 2022 or 2023.
Bitcoin was valued at $8,000. This bold prediction was made by Draper in 2018.
Draper predicts that Bitcoin will continue to move in the same direction. He predicts that the currency will be more widely used by then.
In about a year and half, the Opennode payment processor will become a standard in the industry so that Bitcoin will be accepted by everyone.
Microsoft, PayPal and Whole Foods are just a few of the companies that accept Bitcoin either directly or indirectly through a third-party digital wallet. Experts believe that Bitcoin is more valuable than a currency.
What happens to other major altcoins in the future?
Market capitalization puts Ethereum at #2 with $269 billion. The value of ETH has risen by 854% since the start of the year. This is significantly more than BTC's.
Due to multiple growth drivers, it actually has the strongest bull case. This is primarily due to the upcoming ETH 2.0 upgrade which is expected be the key component in expanding decentralized financing (DeFi).
In 2022, a proof of stake system will be created as a result of the upgrade. The update aims to improve platform reliability, security, efficiency, and overall system performance.
Litecoin, which has a market capitalization of over $9.2 Billion, is one of the most valued cryptos. This is the oldest cryptocurrency on the market. It was created by a fork in Bitcoin's blockchain. In 12 months, the stock gained 215%. There were some stumbles. LTC showed signs of recovery over the last week. This is a sign that things are changing.
LTC is an open-source, highly decentralized cryptocurrency that functions in a similar fashion to BTC. Transactions take just 2.5 minutes with BTC and 9 minutes with BTC. Its transactions are cheaper than Bitcoin at least 40%.
It's been a struggle for years to retain market share and brand awareness. It would be hard to surpass industry giants but it is possible to sustain a long-term position due to its unique features, value to users, and market share.