CNBC Survey Shows Bitcoin Will Fall to Below $30K in 2021

One of the theories supporting such prediction follows the perception that mining Bitcoin has become a more profitable affair and a lot easier.

Bitcoin Mining

More than 50% of the world’s Bitcoin miners are expected to go dark following China’s decision to crack down on mining. The People’s Bank of China made an official announcement that the big financial institutions would be expected to terminate their facilitation of cryptocurrency transactions.

According to the prediction, the market seems discouraging with growing demands and pressures from all sides, including concerns about regulatory laws. There has also been a hawkish adjustment by the Federal Reserve that adds to the expected decline in Bitcoin’s market value in 2021.

Bitcoin to drop below $30K in 2021

The highest Bitcoin has gone in value this year was $64,000 during the month of April, before it took a 35% plunge in the month of May, following the negative publicity let out about the impact that mining cryptocurrency, Bitcoin included, has on the environment. Another cause for the decline concerned China’s regulatory crackdown imposed by the People’s Republic of China.

Over the course of its existence, Bitcoin has several instances of surges and declines. With these historical price fluctuations, crypto investors have made attempts to use traditional markets to manage the volatile trend. Their efforts have all proven to be futile.

The CNBC Survey

CNBC performed a survey using portfolio managers and equity strategists as participants of the study. The objective of this research was to establish and provide an explanation about the internal considerations and influencers by the fintech community concerning Bitcoin as a cryptocurrency.

The research question revolved around where to place Bitcoin by the time the year closes. The result of the research revealed that 44% of the participants believed that the crypto would hit below $30,000 within the year.

The rest of the participants demonstrated a certain degree of optimism. Some of the participants believed that Bitcoin would rise to $45,000 (56%), while others predicted that the crypto would rise to $55,000 (25%).

There was yet a tiny fraction who supported that Bitcoin would restore its lost glory by rising to $60,000 or as close to $65,000 as possible (6%). As industry experts insist that the potential of cryptocurrency can only be measured against its application, Bitcoin has maintained its ground as a reliable measure of value, challenging all odds and predictions.

Crypto Grows Regardless

With the financial situation at hand for investors driven by panic to sell and the changing perception about Bitcoin and cryptocurrency as a whole, the rate of crypto adoption continues to attract a significant following locally and internationally.

The survey conducted by CNBC is merely a representation of a small segment of the crypto population. As such, there is no way this assumption can be relied upon as a general feeling or a clear representation of how investors feel. This prediction, and many others of its kind, can’t serve as the foundation for prospective investors to base their decisions to either buy or sell Bitcoin cryptocurrency.

Key factors for Bitcoin Price in 2021

Despite the prediction that the participants have made of the CNBC survey, certain fundamental factors inspire investors to second guess the results. While the analysts see a weakness in Bitcoin crypto in the short term as influenced by certain external variables like environmental campaigns, in the long term, there are decisive factors that suggest that Bitcoin is on the right path towards a robust value recovery.

Among these factors include the heavy accumulation of Bitcoin, the fact that many institutional investors consistently invest in the coin, and the optimistic technical structure. There is also the fact that the growing hashrate attracts all macro factors together.

A confluence of all these factors includes the low selling pressure due to miners, favorable long-term technical structure, increasing HODLing activity, and the growing number of whales and growing institutional adoption. These factors combined increase the chances that Bitcoin crypto will restore its lost glory within the year.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

US Is Leading The Way With Market Readiness For Crypto

According to Crypto Head, the United States stands at the top of the list for countries or nations prepared for a wide-scale digital asset adoption. The same cryptocurrency platform has also ranked Cyprus as the country most interested in embracing virtual currencies. Why the USA...
Read More

BitBasel: Miami’s Crypto Art Community Comes To Life

One that stands out is BitBasel. The Origins of BitBaselBitBasel is made up of a local Miami community who have been spearheading blockchain education efforts across the city since 2013. BitBasel’s mission is to connect, educate, and empower artists through NFTs. BitBasel chose their name...