The cryptocurrency market has always been very volatile; certainly, this induces a very unpredictable nature to the market and also inflicts high pressure on investors. It is important to note that we may look at these price predictions below, yet their accuracy and validity cannot be guaranteed. In other words, given its volatile nature and the variety of factors involved, it is tough and challenging to make precise predictions about BTC’s prices in the future. Thus, remember that they serve best as a guideline for Bitcoin Price Prediction 2021.
Nevertheless, we will try our best to review some reliable BTC price predictions articulated by credible models, academics, influencers, and price prediction websites to come to answers regarding your potential questions, including Is Bitcoin and Bitcoin cloud mining a good investment for 2021? Is it wise to invest in the Bitcoin market this year? What time should I hold or sell my crypto? So, to know more about Bitcoin price prediction 2021, keep reading the following article.
Bitcoin Price Prediction 2021: Bitcoin Price from October 2013 to July 12, 2021, at a Glance.
CoinMarketCap data (on July 9, 2021) indicates that Bitcoin has a market capitalization of $710,301,779,177 and a twenty-four-hour trading volume of $710,301,779,177, and a circulating supply of 18,724,768.00 BTC. BTC market started 2021 at slightly below $30k.
This April 14, Bitcoin’s price reached a historical high at $64,805, falling short of the resistance level of $65,000. Bitcoin’s rise in both February and April 2021 was partly due to events involving Tesla and Coinbase, respectively. For example, Tesla revealed that they had bought $1.5 billion worth of Bitcoin. Also, PayPal affirmed that it would allow its customers to purchase and sell cryptocurrencies. Moreover, institutional investors, who previously had negative views about Bitcoin, have become more inclined to use it as an alternative to gold. News of these kinds excited the market, causing a price rally on BTC. Because the growing interest and entry of financial sector giants and high-profile investors in the Bitcoin market are positive signs. However, following that, a correction happened, and by April 23, the value of BTC dropped by more than %25, reaching $48,590.
Bitcoin price from Oct2013-Jul2021
Since the significant cryptocurrency crash on May 19, 2021, when Bitcoin dropped to about $30k, its price has changed between $32k-40k. Since June 22, Bitcoin price has printed higher lows, creating a minor rising trend line while struggling to accumulate traction above $35,000-$35,500. On June 25 and 29, Bitcoin repelled as buyers attempt to push BTC price above the $35,000 resistance level.
Still, on July 4, BTC buyers failed to sustain BTC’s price above $35k resistance. In the meantime, BTC’s price has begun to rise again after falling to the low above $33,200 on July 3. Overall, since June 22, BTC’s price has fluctuated between $31k and $35k, and we are still on a downward movement. At the time of writing this article on 12 July 2021, the Bitcoin price is trading currently at about $33,629 after another notable rejection from $34,267. Trading Beast’s Bitcoin price prediction 2021 for July is at:
maximum price – 42,531.146
minimum price – 28,921.179
average price – 34,024.917
The Bitcoin price prediction for the remainder of 2021
Crypto analyst PlanB (popular in the cryptocurrency market for developing a Bitcoin price-predicting model, i.e., as the creator of the Stock-to-Flow Model) has predicted that Bitcoin could trade at $450,000 by the end of 2021, while $135,000 represents the worst-case scenario.
According to PlanB, in the worst-case scenario, Bitcoin would still be trading at $47k in August. September sees a slight reversal, placing the minimum target at $43k for that month, only to be followed by $63k in October. There’s then a surge, with $98k in November and a giant $135k at the end of the year.
PlanB, the worst-case scenario forecast on June 20, 2021
The Stock-to-Flow (S2F) Model
Dan Morehead, the founder of Panthera Capital, expects that Bitcoin will reach its high of $115,000 in August 2021. For this prediction, he has applied the Stock-to-Flow model. Generally, the Stock-to-Flow (S2F) model –one of the most popular prediction models for Bitcoin- forecasts that BTC will touch $100,000 by December 2021.
The essence of this model is that in the long-term, Bitcoin will grow due to its scarcity. Alternatively, the S2F model analyzes the ratio of the assets market supply to its annual growth. Essentially, it lies in the fact that rarity increases the value of an asset. Remember that Bitcoin’s halving event happened on May 11, 2020. Therefore, the production rate (or supply) is gradually decreasing; while the demand rises (assisted by the increasing acceptance of BTC through institutional investors and cryptocurrency adoption by payment companies, including Visa, PayPal, BNY Mellon, and MasterCard). As a result, this will lead to an increase in the price of BTC.
However, it should be noted that the Stock-to-Flow model has often been criticized for its mathematical lack of validity, huge errors, and inattention to external factors.
Theory of Bitcoin’s Four-Year Cycle
Moreover, technical analysts at Rekt Capital predict that Bitcoin will reach its maximum this fall. Their forecast depends on the change in the price of the coin after the halving. According to this theory, analysts monitor the price of Bitcoin in its minimum and maximum values after Bitcoin’s cyclic halving events. In other words, a simple explanation for this theory is that the Bitcoin rate fluctuates cyclically: one cycle takes four years – from halving to halving.
The first Bitcoin halving happened in November 2012. Bitcoin’s price reached its lowest point within 378 days before the first halving and climbed to its peak 364 days after it.
The First Bitcoin Halving on November 12, 2012
The next low price came 546 days before the second halving, and the high followed 518 days after.
The Second BTC Halving in 2016
On both previous occasions, Bitcoin’s price reached its lowest and highest point approximately at the same time before and after halving. Analysts at Rekt Capital believe that it is quite natural that this pattern will also continue after the third halving.
Similarly, Bitcoin reached its lowest price within 511 days before the third halving in 2020. If BTC reaches a new price peak around 511 days after the third halving, so we will see the next BTC price peak, most probably sometime in October 2021. According to Rekt Capital forecasts, based on the four-year cycle model, Bitcoin’s price will rise significantly to about $150,000-$170,000 in 2021.
Bitcoin Price Prediction 2021
TradingBeasts predict that the BTC price is likely to cross $70,797 by the end of 2021; given all other factors being stable and no emergency scenario changing.
As reported by Bloomberg Crypto Outlook of June 2, 2021; the BTC price is more likely to approach $100,000 this year rather than reverting to $20,000. According to the report, the best crypto mining and the crypto trend are upward.
Wallet Investor’s prediction for 2021 implies a bullish outlook for the coin. As shown below by the graph:
Additionally, Gov. Capital anticipates a bullish rally for the remainder of the year to close above the $44,000 mark. Below is a graph showing the entire price evolution:
A Look at Cryptocurrency Expert Opinions
Billionaires and crypto-economists think in the same frame and are even more bullish than ever. For example, blockchain analyst -Willy Woo- has just readjusted his prediction to $200,000 by the end of this year. He believes that around 30% of the world population can own Bitcoin by 2024.
Interestingly, Bobby Lee, the founder of the BTC cryptocurrency exchange, recently predicted that Bitcoin could rise to $100,000 by the summer and to $300,000 by the end of the year 2021. Afterward, in his view, the market will unavoidably fall by 80-90% of any peak value that the coin reached. According to Lee, the next crypto winter could last two to three years.
Ali Mizani Oskui, CEO of FiCAS AG, also predicted that Bitcoin’s price would reach $200,000- $300,000 between late December 2021 and March 2022.
Another optimistic prediction for Bitcoin price comes from Dionne Guillaume, the Bitcoin Magazine author. He believes that Bitcoin will hit the price of $400,000 by the end of 2021. He bases his predictions on Bitcoin’s cyclic halvings.
Moreover, Mark Yusko, a Morgan Creek Capital hedge fund executive, believes Bitcoin will flourish. He predicts that BTC will reach $100,000 in 2021 and even surge to hit $250,000 within five years.
Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, guesses that BTC will reach $400,000 this year. In his tweet, the experienced strategist claimed that the coin would become a global digital reserve asset. He says that Bitcoin’s performance in the past indicates such tremendous growth.
Mike McGlone tweet
Morgan Creek Capital’s founder -Anthony Pompliano- thinks that Bitcoin price will touch the $100,000 mark by the end of 2021. His company helps businesses invest in Blockchain technology. The prevalent supply issuance of Bitcoin is not able to keep pace with the ever-increasing demand from many sectors. Private investors and business leaders probably want to invest in it. The price rise is the only way to find the equilibrium between supply and demand. Apart from the big companies like Square and PayPal, several hedge-fund managers, large investors, and venture capitalists are showing interest in Bitcoin lately.
Fundstrat Global Advisors’ managing partner, Tom Lee, a Wall Street strategist, estimates that BTC’s price is likely to end the year at $100,000. He believes that Bitcoin will replace gold as an investment asset.
The billionaire investor -Mike Novogratz- is another reliable figure who believes that Bitcoin’s price will rise to $65,000 by 2021, making it a great time to buy Bitcoin. According to him, this growth will partly be due to Bitcoin’s scarcity. Since the total number of Bitcoins fix at 20 million, people have started viewing it as an asset already.
And finally, Elon Musk, despite giving mixed signals through his quotes, still believes in the coin. He recently tweeted that he was in discussion with North American cloud miner centers, and the price rose by 4%.
On the whole, most forecasts predict that 2021 will be a bull market year for Bitcoin. Experts seem united in predicting bright possibilities for Bitcoin for the year 2021. As you can see, most experts and analysts seem united in predicting promising prospects for Bitcoin in 2021. This is interesting since analysts in the crypto and financial sectors rarely agree so unanimously on predictions! Bull market cycles happen every three to four years, and 2021 is likely to be one of them. Therefore, considering the price predictions discussed earlier, the conclusion is clear – BTC will remain bullish and profitable in 2021. In addition, the above questions, proposed at the beginning part of this article, seem to have a positive answer. Accordingly, depending on your risk tolerance, we suggest you take advantage of the current low prices now so you may reap the gains at the end of the year 2021.
bull market year for Bitcoin
Nevertheless, be aware that there is also a good consensus that later on, the Bitcoin market will encounter a deep crash because investors and market players will start taking profits at once. In monitoring Bitcoin’s trend over the past 12 years, it appears that the value of Bitcoin always drops after reaching a bullish peak. For instance, in 2011, Bitcoin’s value fell 91%, in 2014, 85%, in 2018, 83%, and in 2019, 50%. The reason for this is due to the high probability that many companies and investors who purchased Bitcoin for tens and hundreds of millions of dollars last and this year will sell their Bitcoins once BTC reaches a sufficiently high value.
The same applies to miners who began accumulating their newly mined coins instead of selling them. Only consider that MicroStrategy owns Bitcoin worth more than $5 billion. MicroStrategy says they will hold the asset for a century, but don’t forget that this is a public company, and shareholders, including BlackRock, Morgan Stanley, and Vanguard, may want to gain some profit and calculate it with a Bitcoin profit calculator. And such sales can severely disrupt the market. Therefore, it is equally decisive to figure out how long you are willing to keep your investment in this market.