BTC Market 2021: Price Prediction and Overall Outlook?
BTC Market 2021: Price Prediction and Overall Outlook?
2020 has been a wild year for Bitcoin and the economic market, in general. Investors reacted poorly to the government imposing lockdown restrictions, leading to a crash in the global equities market.
Many investors were looking forward to the crash because it might reset the bitcoin. Many analysts and researchers also predicted a crash in the BTC market due to the Bitcoin Halving event of May 2020. Bitcoin Halving reduced the miner’s rewards for verifying and mining new blocks of BTC by 50%.
Let us have a closer look at the Bitcoin market in 2020 and predict if 2021 will bring doom or an ascend on BTC, the global finance player.
Bitcoin Market in 2020
At the start of 2020, Bitcoin had a market price of $7,227. By mid-February, it rose to a high of over $10,000 for the first time this year. But with the pandemic outbreak, the bitcoin market crashed and reached a low of just below $5,000 by mid-March.
Predictions said that Bitcoin would struggle to break beyond $10,000. But that held true only till the end of July.
Bitcoin broke its long-time resistance level and soared to $12,168 by mid-August and hasn’t dropped below the $10,000 mark since. Although it didn’t stay above the $12,000 mark for long, Bitcoin found a new resistance level at $10,000. At the moment, Bitcoin is holding firm at $10,890.
Although COVID-19 affected the Bitcoin, the crypto market has recovered and shows a promising positive trend. The market shows that 61% of the Bitcoin supply hasn’t moved in over a year. There was an increase in the number of huge investors moving their funds to personal wallets, showing that investors are “HODLing” their coins.
Many analysts predicted that the Bitcoin Halving would reduce the hash rate to drop sharply. However, data shows that the hash rate has recovered near to pre-halving levels.
Bitcoin Market in 2021
With miners still maintaining a decent hash rate, the increased HODL activity, and a growing number of whales, the Bitcoin market looks strong for 2021. Various investors have been predicting Bitcoin to reach the $1 million mark. At the same time, some placed a price target of $40,000 to $100,000.
Once Bitcoin crossed the $10,000 mark, there is no turning back. Investors see Bitcoin as a safe asset despite its high volatility, and many are “HODLing” BTC.
Over the years, Bitcoin is becoming more scarce. There are only 21 million bitcoins in existence, and 18.5 million of them have already been mined. With a fixed total supply, the price of Bitcoin will increase with increasing demand.
A stock to flow(SF) model shows that Bitcoin could see a sharp rise in its price by 2021. This model predicts that Bitcoin might be valued at $75,000 in 2021.
One cannot easily predict the Bitcoin market in 2021, as there are many factors to look out for. You may need to keep an eye on the stock market or even the housing market and see if they become less attractive. This may pave the way for Bitcoin returns as the perfect investing opportunity. It is never too late to get trading!
