Bitcoin’s Value To More Than Double By End Of Next Year To $ 52,000 Per BTC | Zoom Fintech
BTC bull run could last until second half of 2021
However, half of the Finder.com panel say the bull run will be followed by a steep decline.
- More than half (58%) of the panel say the current bull run will last until at least the second half of 2021
- However, 52% of the panel say BTC will experience a steep decline from its new maximum valuation
- Panel Accurately Predicted BTC To Crack $ 20,000 By Year End
- Institutional investors lead the rally on whales and retail investors
Bitcoin’s current bull run is expected to last until the second half of 2021, according to the majority of panelists (58%) in the quarterly Bitcoin Price Predictions report from personal finance comparison site, finder.com.
On average, the panel of 47 fintech experts and leaders expect Bitcoin’s value to double by the end of next year to $ 51,951 per BTC. Similar figures say it’s a good time to buy or hold, 46% and 43% respectively, with 11% saying it’s time to sell.
When asked if BTC’s short-lived peak valuation in 2017 could repeat itself now, about half of the panel (52%) believed Bitcoin would experience a steep decline (by 50% or more) from its peak in valuation at the end of this bull. run, the remaining 48% saying it wouldn’t be that steep.
More than a third (36%) said that increased regulation could stop the rally and more than a quarter (27%) said that a decline in the stock market would hurt the price of Bitcoin, many suggesting that this would encourage investors to sell cryptocurrency in favor of cheaper. actions.
Bitcoin developer Jimmy Song, who believes the bull run will last until the last quarter of 2021, says supply and demand are driving the rally.
“The halving lowered the supply even if the demand remained the same, that would explain why the price increased. Demand increased due to insane silver printing, so the combination led to a pretty nice price hike. I expect the supply shock to continue into 2021, ”he said.
A number of panelists, including Invest Diva CEO Kiana Danial, also noted that a strong valuation would prompt Bitcoin’s “whales” to throw the coin.
“Bitcoin’s medium-term moves are primarily psychological and based on market sentiment. When there is the hype, everyone is buying and then the whales throw themselves in and the rest of the retail investors get nervous as well, causing a crash. Bitcoin’s price action has been like this since 2011, ”she said.
The panel accurately predicted that BTC would crack $ 20,000 by the end of the year, with a December 31 average forecast of $ 20,102.
The main factors driving the 2020 rally include large-scale public investment from companies like MicroStrategy and Square (cited by 72% of the panel), Paypal’s announcement that it will allow customers to hold Bitcoin ( 72%), large-scale quantitative easing by central banks (66%) and a general change in sentiment and increased acceptance of the Bitcoin narrative (66%).
The rally is primarily driven by institutional investors according to 72% of the panel, with 17% saying it is primarily driven by Bitcoin “whales” and 11% by retail investors.
Gavin Smith, managing partner of the Panxora Crypto Hedge Fund, which predicts BTC will end the year at $ 20,000, said Bitcoin will be increasingly used as a hedge against fiat currency by institutional and retail investors.
“Bitcoin is now being used as a hedge against fiat currency printing by early adopters in the retail and institutional sectors. This trend is expected to continue. We don’t think it will be an uninterrupted rise, we expect the market to exhibit high volatility both on the upside and on the downside, but with a clear bias towards higher levels, ”Smith said.
Finder.com founder Fred Schebesta gave a year-end forecast of $ 17,500, saying he expects the cryptocurrency market to cool.
“The Bitcoin market (and cryptocurrency more broadly) seems to have entered a period of cooling. While there doesn’t appear to be a slowdown in institutional adoption that sparks longer-term interest, it seems reasonable to see it evolve sideways or in the first few months of the new year. If so, it will provide a more solid foundation for the period of growth that many hope will come into play, ”he said.
See the Finder report here: https://www.finder.com/uk/bitcoin-price-predictions-2021