Even the most naive trader knows that Bitcoin is a volatile currency and the change in prices is major (regardless of whether it increases or decreases) and occurs suddenly. During its short term of existence, the digital coin has already given investors every shock and surprise imaginable that one may expect from a cryptocurrency. Yet, Bitcoin remains being one of the most popular choices among individuals. Therefore, a lot of experts attempt to figure out the impact that the next shift of the market might have on Bitcoin trading.
While most predictions in the past differed immensely from the actual results, there have been a few that held true. And so far the cryptocurrency has shown promising prospects for the future. Combining all those facts, there are a few major predictions regarding the Bitcoin prices for the upcoming year of 2021. The good news is that the indicators are in favor of Bitcoin supporters. Industry experts speculate that Bitcoin may even reach a value of $100,000 up to $1 million in the upcoming years.
The question is: Will Bitcoin woo investors in 2021 or is it going it turn off those willing to invest in the digital currency? It is time to find out what experts have to say.
Bitcoin Price Prediction 2021
Bitcoin prices have been bouncing quite a lot this year. During the past 52 weeks it was at a low of $3956 and a high of $12,457. That is a huge leap. So, what can be expected of the next year?
According to the suggested trends, predictions claim that there are a few major factors that point to an uptrend of Bitcoin prices in 2021.
Bitcoin Accumulation is High
Chief technical officer at Glassnode, Rafael Schultze-Kraft, points to the high confidence of investors. According to the holdings’ data, the supply of Bitcoin has not moved for more than a year now. And, it has already hit an all-time high of 61%. This demonstrates the lack of intention to sell BTC at its current price level.
This implies that investors are not willing to sell BTC at its current market price, believing that the trends will be better in the years to come.
Interest of Institutional Investors is Rising Too
The rise in Grayscale Bitcoin Trust assets, which rose to $5.1 billion, is not merely a coincidence. This sharp surge of the AUM demonstrates a lot of meaning to industry experts who handle the Bitcoin prediction. One can easily gain insight into the accelerating demand for Bitcoin investments from institutional investors.
The Cyclic Trend
As is the case with stock market predictions, experts are depending on the cyclic nature of Bitcoin price fluctuations to predict its future prospects. And for 2021, these trends are quite impressive.
If you check the S2F model, the graph trends predict a value of $100,000 between this year’s end and beyond. Hence, it is believed that the next year will show Bitcoin prices soaring in value. And given those predictions, who would want to miss their chance of investing now, knowing what they can reap later?
Bitcoin is a very popular digital asset that investors wish to hold on to for the long term. The supporting data has already revealed that much. From increasing the trust of investors through to growing interest of institutional investors, there are a lot of positive factors that suggest that the prices are going to be even more impressive in the upcoming year. Thus, investors are counting on 2021 for earning huge profits through Bitcoin investments. And, so is everyone.