By Alexa Gavin
Amidst all the chaos and uncertainty unleashed by the pandemic in 2020, a few sectors managed to make headlines and flourish. One of these is cryptocurrency industry. In the last quarter of 2020, Bitcoin’s price quadrupled, making the experts wonder if the pricing pattern will repeat what happened in 2017. Back then, BTC exceeded $20,000 only to take a nosedive soon after.
Bitcoin Predictions And Trends For 2021
The crypto sector experts are largely upbeat about growth prospects of Bitcoin in 2021. The prominent investors, founders, evangelists dealing with the industry think 2021 will bring good news for the sector. While they all think Bitcoin price will surge to dizzying heights, the amount of rise is a topic they do not agree on. Here are their views on Bitcoin price forecast in 2021 and upcoming years.
- Founder of Draper Associates, Tim Draper says the cryptocurrency will reach the value $250,000 by early 2023 or even late 2022. Bitcoin will be the most preferred currency in crypto sector but ETH and XTZ will be used in abundance for making Smart contracts.
- Justin Sun, TRON and BitTorrent CEO, thinks Bitcoin is posed for stellar growth in 2021. The recent BTC price surge is healthy, he thinks. A Citi report got leaked in late 2020 that hinted BTC price can reach as high as $318,000 by end of 2021. This was in fact the assumption of a senior analyst of the bank.
- Noted Bitcoin Evangelist, Roger Ver thinks BTC price will surge upwards for quite some time. Given that mainstream payment service providers like PayPal are warming up to Bitcoin, people’s interest in the currency will shoot up in the near future.
- Boost VC’s MD Adam Draper is enthusiastic about the growth prospects of Bitcoin. People are seeking security in digital transactions like never before and Bitcoin offers just that.
- Coinsquare’s VP and COO, Eric Richmond thinks BTC price will keep on climbing upwards for some time. This may be true for 2021 though later the price may swing back to the US $20k domain. The 2017 price dwindling was owing to people putting faith on projects that were good only on paper at that time. Things have changed a lot and users are now better informed. Now, hedge funds, institutional investors and MNCs all want Bitcoin for diversification of their portfolios.
Summing it up
To get a better view on how Bitcoin is going to grow in 2021, you have to look at the sector from behavioural economics angle and volume analysis perspective.
Since March 2020, the TOTAL index which covers all cryptocurrencies has grown massively, by almost 1000%. It was at the end of 2020, that the index grew at an incredible rate. This reflects the well-known FOMO effect.
In January 2021, the trading volume was found 3.5 times higher. The price, however, did not change a lot. That is because most people who bought Bitcoin were common users and they bought from professionals. The market is reaching a state of culmination, the analysts say. A large-scale correction may occur later, succeeded by a rebound.
