Bitcoin Hits $61,000. What's The Forecast?

In March, the price of one Bitcoin soared above 61,000 USD for the first time in its history and broke the record again a few weeks later. Having peaked on January 8th ($41,528) and then on February 21nd ($58,354), in the past year the coin has risen up about 1,000% in total. While the transaction fees soar high, crypto investors and analysts are pondering: will the upward trend continue?

Forecasts have been updated. Some of them are (as always) polar. Skeptics claim that the bubble is still to pop, others are promising further growth: up to $600,000. For one, Mike Novogratz, founder and CFO of Galaxy Digital, told Bloomberg that by the end of 2021 one BTC could be trading for $100,000. Simon Peters, Etoro’s market analyst, mentioned the figure of $70,000. Citi experts are talking about $300,000.

Most of the analysts, though, agree on the following: at $50000 the crypto has crossed a psychological threshold, ensuring its further growth. Apparently, it was triggered by Tesla’s announcement on making a $1.5 billion investment into the coin and accepting BTC to buy its cars.

In just a couple of weeks, MicroStrategy followed in Tesla’s wake, buying $1 billion worth of BTC. Mastercard is bringing select cryptocurrencies in its network, while Visa is considering doing the same, should the pattern hold. According to Novogratz, this is just the beginning. More large-scale buyers will make sure that Bitcoin continues to rise.

A number of renowned economists and analytics, – including Charlie Munger, vice chairman of Berkshire Hathaway, – believe that the coin is too volatile to be a part of mainstream finance. It can never, they say, serve as a universal medium of exchange or a reliable asset.

Well, it looks like the process is already in motion. Munger’s opponents argue that trust in a currency is what gives it value and stability. Thus, Michael Saylor, MSTR Founder CEO, says that Bitcoin will become less volatile as its market cap exceeds $10 trillion. And if faith in the coin (as well as its value) grows to that point, it has all the chances of truly becoming the digital equivalent of gold – pretty much in the same way the real gold was once recognized by the world.

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