Bitcoin is the most valued cryptocurrency right now.
It has been a trendsetter for all kinds of different cryptocurrencies that basically utilised bitcoin’s open-source code. Since its inception in 2009, bitcoin has been on a rollercoaster ride; it goes up and it comes back down at dizzying speeds. However, if we compare devaluation and increase in value, the growth has been more than significant over the past few years. Not only this, but this running year bitcoin reached the unprecedented mark of $50,000 for one bitcoin.
Back in January, many different analysts presented different predictions about the value of bitcoin in 2021 and what trend it would follow. Some predictions seemed realistic, while others seemed farfetched. One of the predictions by Mike McGlone, an analyst at Bloomberg, stated that the bitcoin would hit the $50,000 mark sometime this year. This prediction seemed realistic. However, what was unexpected was that it would hit it by February. On February 16th, 2021, bitcoin’s value increased more than 3% as it crossed the predicted mark.
This increase was associated with the endorsements that bitcoin received from large industries, including the tech giants Tesla. Moreover, Mastercard also supported bitcoin, and announced that it would onboard cryptocurrencies onto their network. Today, bitcoin is at a value of more than $56,000 and ranks at the top. You can visit BitQT login if you want to invest in bitcoins.
There have been some low moments for bitcoin. With its excessive volatility, one would presume that it can go either way. We witnessed what happened in 2017, when bitcoin’s value, over the course of a year, dropped by more than 60%. It is fair to say that when dealing with cryptocurrencies, it becomes difficult to predict trends. Analysts do have their models, but there is constant uncertainty about what might happen next. However, the market trends and analysts are confident that bitcoin will go through a tremendous increase in its value this running year. And it seems plausible given the more than $20,000 increase in its value since the beginning of the year.
What Lies Ahead?
Mike Novogratz, a cryptocurrency hedge fund manager, predicted at the beginning of the year that bitcoin would cross the $65,000 mark in the running year. It now seems like bitcoin will hit this predicted mark anytime soon.
Other predictions by different analysts place the value of bitcoin from $86,000 to $146,000. While the earlier still seems to be realistic, given that we have about nine more months to go, the latter seems a little farfetched. It would require bitcoin to grow extensively and at a relatively constant rate for the rest of the year to achieve that mark.
The strangest prediction comes from the Citibank analysts Tom Fitzpatrick, who has said that by the end of the running year, bitcoin will be valued at $318,000. While we have witnessed bitcoin exhibiting enormous growth over the past years, this just doesn’t feel right. Even with extreme volatility, the exponential growth required to hit that mark seems to be a fantasy.
However, one thing that remains true in the case of most predictions is that everybody seems to believe that the value will follow an increasing trend. The reason behind this is the exponentially growing adoption. As stated earlier, many large firms are endorsing bitcoin, even though its volatility makes it a questionable choice. But there’s still something about bitcoin that seems to be promising enough to lure in these big companies.
There are a lot of investments being made by large corporations into bitcoin. It seems as if the risk analysis is in favour of these investments. And while bitcoin may not become a reserve currency anytime soon, it will become a norm around the globe.