In the past, Bitcoin was somewhat of an unpredictable cryptocurrency. You couldn’t tell what would happen to the price from one moment to the next.
Thankfully, Bitcoin is starting to stabilize as of late. This means that it becomes a lot easier to predict price action for the remainder of the year. Here are some Bitcoin predictions from the experts.
We are going to try and keep these Bitcoin predictions simple and easy to understand. We don’t want to bog you down with data. We just want to share the raw facts with you.
Bitcoin Value by the End of 2021
Experts seem to believe that Bitcoin (BTC) will hit between $50,000 and $60,000 by the end of 2021. This certainly is not an unreasonable expectation.
The value of a single Bitcoin managed to hit $50,000 early in 2021 before falling slightly. If the history of the currency is anything to go by, then it is almost certainly going to rise again. There is a strong chance that it will see growth well beyond the $60k mark. Some even believe it can hit $100k.
One belief that seems to be uniform among experts is that Bitcoin will likely see a lot more growth in 2022 than in 2021. We are talking about a doubling of the value, at the minimum. So, if you have some Bitcoin, you may want to hold onto it throughout this year to push that value high.
Bitcoin Will Beat the Gold Price
As you may well know, a lot of people are starting to see Bitcoin among the list of safe investments – even safer than gold. Obviously, gold is always going to be a good place to hedge an investment.
It always has been. However, Bitcoin is also starting to become a choice for those wanting to diversify their investments into relatively safe locations for long periods.
Many people believe that Bitcoin will exceed the gold price in 2021. In fact, some people believe that the market cap for Bitcoin will shoot well past gold.
At the time of writing, gold is still a bit higher than Bitcoin, but we know that a lot can change with Bitcoin in a short time, so we doubt that this is going to be a thing for that much longer.
If the prediction of exceeding $60,000 is correct, then, yes, Bitcoin will exceed the price of gold in 2021.
Major Investors Will Invest in Bitcoin
If you are interested in Bitcoin, then you will know that it is starting to catch the attention of some major investors.
Love him or hate him, Elon Musk seems to be pushing the idea of Bitcoin hard recently. Some believe he was the main driver in the change of price for Bitcoin during the early part of 2021. He claimed that the current value of $50,000 was a little too high, and the price fell.
Tesla (TSLA) has started to buy in some Bitcoin as an investment, and we reckon that a lot of hedge funds and other investors are likely going to end up doing the same.
As major investors start to buy up Bitcoin, the value of Bitcoin is always going to increase. Well, at least for a short while.
The main issue here is that if the investors are buying up Bitcoin in large quantities, there could be a major sell-off later on down the line which can reduce the price drastically.
However, we doubt that this is something that will be happening any time soon. Not for years and years, and we doubt that unless the market completely collapses, no mass sell-off will send the value of Bitcoin plummeting below 2021 values.
Other Cryptocurrencies Will Increase in Price
While other cryptocurrencies have tried to differentiate themselves from Bitcoin, they are struggling. The entire cryptocurrency market seems to be linked to Bitcoin. If standard cryptocurrency prices increase, then Bitcoin will increase too.
During early 2021, the value of other cryptocurrencies started to increase which, in turn, pushed up the value of Bitcoin. Many people believe that the value of these other cryptocurrencies will continue to increase which, of course, means that the value of Bitcoin will increase in line with them.
This may be a good time to spend a small amount of your funds on other cryptocurrencies. Bitcoin will always be the big winner here, but smaller cryptocurrencies can also deliver some nice returns too.
The Price Corrections Will Happen in Spring and Winter
Many people do not believe we have seen a proper price correction on Bitcoin in 202. Any changes to the value of Bitcoin have been minimal at best.
Most people seem to believe that there will be large gains in the value of Bitcoin at two points this year:
- At the start of Spring
- At the end of Winter
So, if we are not seeing major gains in the value of Bitcoin throughout the Spring and Summer months, you probably shouldn’t fret too much. That big price correction is likely to happen as we head into the Holiday season, and may even continue until the early part of 2022.
Companies Will Continue to Develop Bitcoin-Driven Services
The problem we are seeing with Bitcoin right now is that people are using it as a bank. It is tough to make actual payments with Bitcoin at the moment outside of a few niches. This means that the value of Bitcoin is purely speculative as opposed to holding real value.
Bitcoin will not see sharp increases in prices until we can come up with affordable and effective tech that makes it a viable payment method.
So, our big prediction for this year is that more and more resources start to be poured into this. This is because many big investment firms are using Bitcoin as a safe bank account, so the motivation for the tech is now there.
While this may not have an impact on the actual price of Bitcoin in 2021, it will benefit Bitcoin holders in the years beyond this. Much of the tech will be developed this year, though.
Conclusion
While the nature of a cryptocurrency does make it tough to predict at times, simply because changes to the cryptocurrency market can make things a little bit more turbulent, it is safe to say that throughout 2021, the value of Bitcoin is going to rise.
We will see those peaks and troughs, just like you would see throughout any year when it comes to Bitcoin. However, nearly every expert in the Bitcoin area seems confident that the price is going to rise.
Barring some outlandish changes to legislation related to Cryptocurrencies, we simply cannot see the market collapsing. If you buy Bitcoin before the start of Spring, that is when you are going to see the biggest gains for your investment.