Ever since its introduction as a digital currency, bitcoin has continued to make massive strive in the cryptocurrency industry. Widely known as the most popular coin and highly recognized both within and outside the cryptocurrency industry, bitcoin is becoming accepted globally as seen with the rapid rise of Bitcoin price.
Today, many people still feel the fear of missing out as regarding buying bitcoin in 2018 when its price was below $3,000. Nevertheless, those who took the leap and invested in Bitcoin are smiling today as bitcoin’s price has smashed its predicted peak and soaring higher by the day.
This article will look at the future projection of bitcoin after hitting its all-time highest price. The cryptocurrency market is a highly volatile market with the price changing dramatically; hence, many investors are becoming keenly interested in the market. Finally, we will provide future price predictions for the next few years to inform you about what step to take.
Evolution of Bitcoin Trend
The history of bitcoin is full of ups and downs. If you are new to the cryptocurrency world, it is essential to understand bitcoin’s price movement since its creation. Let’s take a look at how the bitcoin price has evolved over the last few years.
Bitcoin started in 2013 and traded around $13.50 per bitcoin. Although many people were skeptical of its progress, the “bulls” that took a leap of faith are in for a time of their life. In early April 2013, the price of bitcoin railed along before reaching a high of $220. However, in mid-April, it took a dip, and the price got to $70; for skeptics, it was a sign that bitcoin was bound to crash.
Nevertheless, in October and November of 2013, the price rose to $195 before climbing another all-time high at the end of November. It was the first time the price of bitcoin reached $1,075; the rise was due to new miners and bitcoin exchanges entering into the China marketplace.
However, on 4 December 2013, it got to another all-time high of $1079 before dropping to $760 three days later. In January 2014, bitcoin’s price stabilized around $920 before its dip in July 2014 to $315. Furthermore, in the summer of 2015, it began to extend its current price before fully stabilizing to $1000 in early 2017.
Towards the fall of 2017, the BTC price started rising and broke the $5,000 market in October before doubling the next month’s price to $10,000.
Bitcoin hit an all-time high
With the stock market surging and gold flattening, investors have been on the see-saw. Whatever side you tend to face, you might be biting your fingers or licking it depending on the financial market you invest in.
For those in the financial market, the most tremendous shock of their life was not from their popular assets. It was from the cryptocurrency market where the price of bitcoin rose to an all-time high. Interestingly, it didn’t just reach an all-time high; it took less than three days to smash that record to another all-time high. Despite the fact most countries and authorities frown at bitcoin, it has come to prove them wrong.
The price of bitcoin took a 10.5% risk to reach an all-time high of $24,200, which is a gain of over 220%. The rise is attracted to investors’ demand due to its potentials and its hedging qualities during inflation.
Ethereum, which moves in the same direction as Bitcoin, experienced an increase of 1.75% to its price. However, with the supply of bitcoin capped at 21 million, investors are using bitcoin to hedge their investment against any inflation since governments and central banks are looking for stimulus packages to respond to the recent COVID-19 pandemic.
Bitcoin’s recent high is driven by increasing expectations that different payment platforms are accepting it as a means of payment, thereby opening the door to cryptocurrency. Although it is less regulated than our traditional assets, numerous institutional investors have started to shed doubt on cryptocurrencies.
Factors Affecting The Price
It is common to see price rise or fall, but price won’t do that independently. Different factors might contribute to affecting price. Today, bitcoin price gets affected by a whole lot of news and events in the world. During the early days of COVID-19, the bitcoin price also decreased, similar to other financial assets. Here are a few things that might affect it.
1. Market competition
2. Supply and demand
3. Regulatory changes
4. Technological changes
Bitcoin Price Prediction for 2021
The year 2020 came with a lot of promises in the cryptocurrency world. While for some, it is getting the wrong side of the stick; however, not for those who invested in bitcoin hitting an all-time high of $20,000.
With an all-time high of $24,200, what does 2021 hold for bitcoin? Everyone is hoping 2021 becomes better than 2020. What does the future have for 2021 in the cryptocurrency world? What is BTC price prediction for 2021?
It is currently unknown what the future price of bitcoin will be; however, there are predictions that bitcoin’s price will surge higher due to the recent COVID-19 pandemic and the upcoming lockdown being discussed. For instance, in the United States, the economy is experiencing some tough times, and investors are looking for a safer way to protect their investment.
In all fairness, the market sentiment is awesomely bullish. Hence a lot of bitcoin prediction for 2021 seems to point towards an upward surge even as we await who becomes the United States president.
Bottomline on Bitcoin Price Prediction for 2021
It appears that we are in a “season” of bulls being supported by growing retail adoption, institutional investment flows, and on-chain metrics. We cannot tell you the exact price bitcoin will reach in 2021, but every indication points to the fact that it will experience more highs over the next few months. You can also look at our website for further help.
Although we are not fortune-tellers, we believe that the bitcoin price could reach $45,000 as it follows its historical price pattern. Despite the potential risks involved in cryptocurrency investing, the risk-to-reward ratio looks impressive for anyone considering investing in bitcoin.