5 Competing Bitcoin Predictions – From Worthless To Invaluable

However, during the coronavirus pandemic, the landscape changed drastically for Bitcoin, which went from being a nerd currency to becoming the most requested asset in the world. Not just by people, but by large institutions and even countries.

Bitcoin became the best asset of the decade, entered pension funds, became part of the reserves of several public companies, became a legal currency in El Salvador, and recently finally obtained approval for ETFs.

In addition to the specific developments in the crypto market, there is still a complex scenario at the macroeconomic level. Will a possible financial market crash be beneficial or harmful for cryptocurrencies? Will the change in financial stimulus policy affect Bitcoin’s growth? Will the energy supply crisis have marginal effects on the crypto market?

5 Bitcoin Predictions

With all the recent developments, there is no shortage of experts looking to predict what the future of Bitcoin will be. And the biggest question of the year for the world’s biggest cryptocurrency remains on the table. Will the price of Bitcoin reach $100K in 2021?

To answer that question, let’s look at 5 predictions about the price and future of Bitcoin.

Stock-to-flow (S2F)

Last Tuesday (9/11), Bitcoin (BTC) broke into new all-time highs, with the asset last changing hands in the mid $67,000 range. And with this new all-time high, many analysts turned their attention to the stock-to-flow (S2F) model of the pseudonym analyst PlanB.

SF2 has gained a lot of notoriety in recent years due to the accuracy of its prediction. The model, which seeks to predict the price of Bitcoin through its production/scarcity and demand relationship, suggests that Bitcoin will close November above $98,000 and will have marked $135,000 by the end of the year. And more than that, the model predicts that the bullish cycle is far from over and that Bitcoin will reach US$ 288,000 next year.

Source: PlanB

JPMorgan

In line with the positive forecasts, global investment bank JPMorgan also doubled its Bitcoin price forecast, forecasting the value of US$ 146,000. The bank’s analyst explained that the price of cryptocurrency could reach this level if its volatility decreases and institutional investors start investing in Bitcoin more than gold in their portfolios. In recent years, the narrative of Bitcoin as a store of value has matured exponentially. The firm’s analyst Nikolaos Panigirtzoglou wrote:

Bitcoin’s allure as an inflation hedge has perhaps been strengthened by the failure of gold to respond in recent weeks to heightened concerns over inflation.

Bitcoin Could Lose Its Crown to Ethereum

Although the forecast scenario is positive for Bitcoin, some analysts indicate that it could lose its crown to Ethereum. Interestingly, historically Ethereum has a positive correlation of 2.5 with Bitcoin. That is, when Bitcoin goes up 1, Ethereum goes up 2.5. When Bitcoin drops 1, Ethereum drops 2.5. Following this trend, Rahul Rai, the co-head of market neutral at BlockTower Capital, told:

“I definitely think there’s a really good chance for ether to surpass Bitcoin. I wouldn’t be surprised if it happened within the cycle. Very tough to predict when this cycle will end. My take is mid-next year.”

The idea that Ethereum can outperform Bitcoin is based on the assumption of its usefulness. While Bitcoin is seen as a store of value, similar to gold, Ethereum is seen as the railroad tracks of all global finance, the infrastructure that keeps the entire finance market decentralized.

In that sense, as the market capitalization of gold is currently estimated at around $11.6 trillion, Bitcoin at $1.3 trillion and Ethereum at just $570 billion, there is great growth potential for both. the coins.

Finder.com’s Bitcoin Price Predictions Report

According to the Finder.com panel and the 50 experts in attendance, the BTC will hit $80,021, with more than a fifth (23%) thinking the BTC will hit $100,000 or more. Gryphon Digital Mining CEO and Director Rob Chang predicts the BTC will hit $111,000 this year, attributing his prediction to the start of widespread adoption of Bitcoin:

Source: https://www.finder.com/Bitcoin-btc-price-prediction

“I believe we are in the early stages of rapid adoption of Bitcoin that will spread beyond El Salvador and Twitter and into more traditional areas. As this occurs, the general public will be increasingly exposed to Bitcoin and this shift from obscurity to the mainstream will catapult Bitcoin prices for years to come.”

Despite the bullish outlook, some experts expect that after hitting $100,000 Bitcoin will likely drop to $71,415 per BTC by the end of the year. Some panelists, like Alex Nagorskii of DigitalX Ltd, predict that the BTC will end the year at between $60,000 and $99,000.

The Trend is Up

As the popular saying of the world of cryptocurrencies goes, the trend is up. It’s high infinity. 12 years of discharge. It was never low. Since 2008 until now. There are some adjustments of 60, 70%, 80%… then it goes up another thousand, fifteen hundred percent​​.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

Burned By Bitcoin? Reset Your Expectations Here

Which reminds me… I had the same small toaster oven for years and years. When I got married, that trusty bread-warmer helped me welcome my cooking-challenged wife into the kitchen. She used it like a pro. But the death throes of that handy machine were...
Read More

El Salvador Eyes Up Greener Bitcoin Mining Opportunities

In El Salvador, the government intends to build Bitcoin mining facilities using volcanoes, which produce zero-emission, renewable energy. El Salvador and BitcoinIn early June, El Salvador’s President Nayib Bukele declared that he aims to send a bill to Congress to make Bitcoin legal tender. Only...
Total
0
Share