Expert price predictions: Can Bitcoin reach new heights in 2021?
Bitcoin has been setting jaw dropping records in the past couple of days. The cryptocurrency’s worth reached an all-time high – currently trading at $29,105. This is a great start in the brand new year for Bitcoin, and many experts are already predicting what 2021 (and the years after) will bring for this cryptocurrency. So far, opinions have been increasingly hopeful.
On Wednesday, December 30, Bitcoin traded above $28,900 – a new record for the currency’s all-time high. Entrepreneur verified on Wednesday that “In the last twenty-four hours, Bitcoin (BTC) cost as much as $28,925 according to data from CoinMarketCap and Glassnode. For its part, the site specialized in cryptocurrencies Coindesk registered a maximum of $28,969”.
Then, the price of Bitcoin faltered for a bit, and fell down to $28,600 only minutes after going down to $28,800. From then on, the worth climbed higher and higher. Now, as of January 1, 2021, Bitcoin is quickly approaching $30,000 – a price point that could be an important milestone for the cryptocurrency to break above.
Bitcoinist announced, “This may prove to be one of the strongest resistance levels it has seen since breaking above $20,000. If history rhymes, this indicator flashing could suggest that a 38%+ retrace is imminent before BTC sees exponential growth. Bulls have been vying to send its price up towards $30,000, but the selling pressure here seems to be rather intense”.
On March 12th #Bitcoin prices plunged 39% in a single day, eventually hitting a low of $3,850.
On December 31st #Bitcoin prices raced to a new all-time high of $29,000+.
What will 2021 bring? pic.twitter.com/CXmioS6QrO
— Bitcoin (@Bitcoin) December 31, 2020
The value of Bitcoin was around $17,650 on December 12 of 2020, but by the 16th of that month, it had broken the $20,000 barrier and has only continued to increase higher and higher since then. Entrepreneur analyzed that it was an “increase close to 64% in just eighteen days”.
In a tweet made on New Year’s Eve, Bitcoin wrote “On March 12th #Bitcoin prices plunged 39% in a single day, eventually hitting a low of $3,850. On December 31st #Bitcoin prices raced to a new all-time high of $29,000+. What will 2021 bring?”
Glassnode analyzed that due to few units of Bitcoin being available in the market, there looks to be a very bright future for the cryptocurrency. The recent study showed that “around 78% of the circulating Bitcoin supply is considered illiquid” and “only 4.2 million BTC (22%) are currently in constant circulation and available for buying and selling”.
This is due to many big investors acquiring Bitcoin as a store of value, and researchers have noticed that “Bitcoins in motion has been decreasing in recent months” and “fewer and fewer entities [are] willing to sell their Bitcoins”, according to Entrepreneur. This means that “the current bull market is driven by the staggering amounts of illiquidity”, Glassnode reported.
Meaning that, as the units available for purchase continue to decrease, the more expensive the price of obtaining a Bitcoin will be. This is what makes the future of this cryptocurrency look so promising to experts.
Future of crypto
As a whole, cryptocurrency has been considered by experts to be the currency of the future, and these past years have proven these predictions to ring true so far. In 2020, payment services such as Paypal & Square made crypto much more easily accessible than ever before by making digital assets available to their users.
The founder & director of the crypto investment app B21, Miles Paschini, also advised Cointelegraph that he strongly believes 2021 will prove to be an even stronger turning point for cryptocurrency, saying “Tools for investors and payment system users will become more user-friendly and banks who previously shunned cryptocurrencies will begin to adapt and offer integrated services”.