Will bitcoin rise to $100k? 4 predictions for BTC in 2021
The first cryptocurrency has risen 800% in the past 10 months. There are many indications in favour of continued growth, experts say. Bitcoin has appreciated 800 percent since March 2020, reaching a current high of $34,400. On Jan. 8, the cryptocurrency hit a new all-time high of $42,000. This is not the limit, said analyst David Sailer, who started mining BTC in 2011. In an interview with Money Morning, he said that the coin will rise to $100,000 by 2022.
Sailer believes that one of the reasons why such a scenario is possible is because of the halving that happened in May, which lowered the rewards miners receive for mining the cryptocurrency from 12.5 BTC to 6.25 BTC. The analyst also noted that buying cryptocurrency has become easier as payment systems and apps such as Cash App, Robinhood and PayPal have added support for digital money.
«The number of bitcoins in circulation is decreasing, while the demand for it is growing, and now not only from retail investors, but also from professionals, which was not the case in 2017. I don’t see among all this anything that could put pressure on bitcoin and cause it to collapse in the next 1.5 to 2 years,»
RJ financial analyst Tom Bayer believes that a scenario of bitcoin appreciation to $100,000 is not out of the question. The expert called the increase in the turnover of cryptotransactions in the PayPal system, record trading volumes and a high level of open interest in bitcoin futures on the Chicago Mercantile Exchange (CME) the preconditions for such growth.
«The number of bitcoins in circulation is down and demand is up and now not just from retail investors but also from professionals, which was not the case in 2017. I don’t see among all this anything that could put pressure on bitcoin and cause it to collapse in the next 1.5 to 2 years,» Bayer explained.
This year, the $100k level is not so obvious. To reach it, bitcoin would have to act as a true defensive asset. This could be helped by rising geopolitical tensions, as well as a significant decline in stock markets, which is so obvious right now.