The value of the main digital coin can either fall drastically, to $6 000, or it can elevate dramatically and reach its all-time high. Let’s break down all the several possible 2021 crypto market scenarios.
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Scenario #1: Bitcoin can soar higher than the sky
Bitcoin price could rise to $318 000 by December 2021. This forecast was given by the managing director of American Citibank Tom Fitzpatrick, during his report for institutional clients.
The forecast is based on a technical analysis of the previous highs and lows of the bitcoin price.
The Managing Director of Citibank compared the cryptocurrency price movement in 2010-2011 to the 1970 gold market. The precious metal had been growing steadily in price since the abolition of the peg of the dollar to gold in 1971.
In recent years, the inflation of the dollar makes it possible to compare bitcoin with gold, Fitzpatrick is sure. The sharp rise in the cost of cryptocurrency was a consequence of the 2008 financial crisis, after which, in 2011-2013, the cost of bitcoin increased 555 times.
Today, measures to support the economy amid the COVID-19 pandemic are creating conditions similar to those of the 1970s, the managing director of Citibank says.
Scenario # 2: Bitcoin will reach $15 000 or $20 000
The world is transforming and reshaping right before our eyes – how can we predict what will happen if there are emergencies everywhere we go? Who could have known that the coronavirus pandemic would emerge? Moreover, how were we supposed to know that the economy of the whole world would crash? In addition, so much depends on the decisions of the governments, without even taking economic conditions into consideration.
Since the banks did not want the global market – and their local markets too – to crash, they had to spend billions and billions trying to make the Covid pandemic less adverse.
As a consequence, the money spent made the financial markets go crazy. The quotes of equity indices went higher than ever before.
Ultimately, this money circulating in the financial markets made the quotes of gold and the US stock indexes reach new highs humanity has never encountered before. This money also partially pumped up the demand for another thing – cryptocurrency. It all stands to the reason that the quotations for bitcoin increased. And not only for bitcoin but also for lots of other altcoins. Well, obviously, people are always searching for ways to keep themselves and their families safe. Hence, they make attempts to guard against traditional currencies losing their buying capacity. In the wake of it all, bitcoin can grow up to $15 000 and up to $20 000.
Scenario # 3: Bitcoin price may drop to $1700
Bitcoin has not yet found its bottom. However, according to the Princeton University graduate and one of the leading cryptanalysts Murad Mahmudov, it may happen around April, when the value of the coin drops to levels of $1700- $2200. He compared the current situation in the industry with the 2014-2015 bear market, writes Ethereum World News.
Bitcoin’s growth is constantly increasing. Moreover, the majority of experts state that it will keep going up due to the money provided by the American Federal Reserve and the gradual dollar depreciation (plus, let’s not forget that the world’s national currencies are deprecating as well). Therefore, in 2021, the coin rate may reach a jaw-dropping maximum. However, some financial operations can turn the situation the other way around – we could not predict Covid either, huh?
Most of the experts agree that at the end of this year, the Bitcoin rate should not be lower than the $12 000 mark. This value is considered a balance point and shows the optimal price level. If you ask us, we do see Bitcoin getting more and more powerful due to the fact that more and more people start using electronic wallets and that trading volumes are increasing too.