Why Analysts Believe BTC Price Will Hit $100K And ETH $20K

Meanwhile, Ether, Bitcoin’s smaller sibling, rallied to a peak of $4,300 this year but has since parried over half of its accumulated gains. That crash has led to concerns over where the top altcoin is headed next.

In this comprehensive guide, we examine what top analysts are forecasting about the future prices of BTC and ETH.

The Driving Forces behind Bitcoin’s Astronomical Growth

Bitcoin was introduced in 2009 as an answer to the problems ailing the traditional financial system. At its inception, Bitcoin was essentially worthless, with a value of less than a penny.

However, Satoshi’s invention has gone on to reach lofty heights of just under $65K after logging a year-long rally spurred on by rampant inflation amid the devastating Covid-19 induced lockdowns.

The pandemic brought the global economy to its knees, prompting investors to seek alternatives to the crashing financial markets. Even though BTC suffered a catastrophic blow during the onset of the pandemic, it soon established itself as a rival to gold, an historical safe haven, by rebounding to its annual maximum quicker than the precious metal.

Indeed, BTC managed to recover from its infamous Black Thursday crash and embarked on a 600% surge in price as capital markets worldwide lagged behind. The new-age cryptocurrency rose from lows of $3,400 seen in March 2020 to an all-time high above $64,000 seen just months ago.

As a result, institutional investors jumped on the Bitcoin train, with corporations such as Square Corp, Microstrategy and Tesla resorting their cash reserves into the digital currency. As the world’s leading crypto exploded in value and started showing genuine signs of going mainstream, giant financial institutions like Visa and Paypal started supporting Bitcoin services.

The king coin’s rise to prominence has been significantly buoyed by the recent halving event, which slashed rewards of BTC Mining from 12.5 BTC to 6.25 BTC. The third halving, which happened in March 2020, was instrumental in pumping the flagship cryptocurrency’s prices; it lowered supply and consequently triggered a higher demand.

Strong network fundamentals, coupled with rampant global inflation brought on by massie quantitative easing from central banks, have showcased Bitcoin’s qualities as a good store of value. As a result, many financial analysts and industry experts predict the worth of BTC could grow exponentially in the near future.

Analysts Predict BTC Could Hit $100K

Over the past year, Bitcoin has embarked on a steady rally that saw it cross the $20K mark in Dec 2020, before going on to hit $40K a few weeks later. The rally climaxed with BTC setting a new all-time high of $64K two months ago before shedding 50% of the accumulated gains.

Still, some analysts believe the king coin will rebound and go on to trade in uncharted territory as its reputation as an alternative store of wealth continues to grow.

According to Mike McGlone, a senior commodity strategist at Bloomberg, the recent BTC price retracement is only temporary, and the coin will soon get back into form. In the latest Crypto Outlook report published by Bloomberg, he argues that Bitcoin is more likely to rocket to $100K than slide toward $20K.

Other respected crypto analysts and experts have weighed in on Bitcoin’s price action. Max Keiser, a relentless Bitcoin bull, revised his prediction on the long-term price trajectory of BTC upward in 2020.

The analyst and host of the Keiser Report had called for the flagship crypto to hit $100K even when it was worth just $1. But last year, he decided to raise his official long-term price target to $400K, citing the Covid-19 pandemic’s impact and Bitcoin’s ever-growing reputation as an alternative to traditional gold.

Meanwhile, JPMorgan analysts released a note at the start of 2021, where they put a long-term price target on BTC at $146K. Per their analysis, the value of Bitcoin should skyrocket as it establishes itself as a safe haven against economic and political crisis. The experts also see Bitcoin competing with gold and predict that its volatility will eventually converge with the precious metal.

Similarly, Robert Kiyosaki, a prominent investor and author of the book Rich Dad, Poor Dad, firmly believes that Bitcoin will appreciate in the coming months. The entrepreneur, who recommends that his followers invest in Bitcoin and gold, calls for the leading cryptocurrency to hit $75K in three years.

Although the predictions from industry experts vary, there is enough consensus that the BTC price could reach heights of $100K and beyond in the long term.

Other avid Bitcoin advocates and early investors in the cryptocurrency, such as the Winklevoss twins, are even more bullish in their estimates.

In an interview on CNBC’s “Squawk Box “ the Gemini exchange co-founders said they expect Bitcoin to emerge as the best performing asset of this decade and called for the price to hit $500K in the future.

Could Ethereum Hit $20K?

Ethereum took the crypto market by storm in 2021, surging from lows of $1,000 at the beginning of the year to hit a new lifetime high of $4,196. The second-largest crypto has locked gains of nearly 2000% this year and has even briefly touched a market cap of $500 billion.

Ethereum continues to roll out new upgrades leading up to the Mainnet launch of Ethereum 2.0, which is projected to propel the blockchain network to radical new heights. Use cases that are significantly increasing demand for ETH continue to mount, especially in the DeFi and NFT worlds.

As a result, some analysts forecast the coin’s value will appreciate in the coming months, with some making bold predictions that the price will hit $20K.

In June of this year, Finder.com surveyed 35 FinTech experts who gave their outlook on the price of Ethereum. Participants in the “Finder Cryptocurrency Predictions 2021” reached a consensus that the ETH price will reach $4,512 on average by the end of the year. They also expect the coin to soar to highs near $20K by 2025.

The launch of ETH 2.0 in the coming months continues to draw investors to the project, as it is expected to solve the current gas fees crisis and solve other bottlenecks such as congestion.

Therefore, it isn’t unreasonable to anticipate the ETH price to surge higher as developers continue to build new applications on the Ethereum ecosystem that are transformational for multiple industries.

Author’s Thoughts

This year has been exceptional for BTC and ETH, the two leading crypto assets in the world. On its part, Bitcoin has had a spectacular year that has made it a household name and seen it enjoy the most prolific bull market cycle in history. The impressive run has seen the coin surpass the combined market cap of the Bank of America, JP Morgan, and the Industrial and Commercial Bank of China.

On the other hand, Ethereum has proved its immense network potential that will transform multiple industries with unique use cases. ETH is likely to attract as much institutional interest as Bitcoin in the coming months with its unrivaled capacity to facilitate the building of ideas into innovative systems and businesses.

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