This week has been a historic moment for Bitcoin. Three years ago, after nearly passing over $ 20,000, Bitcoin fell into a two-year long bear cycle. Now, Bitcoin has finally come full circle: after a year-long bull run, BTC’s latest price rise has brought the asset well over $ 20K. At press time, the price of Bitcoin had risen to $ 23,000, and was still climbing steadily.
When BTC hit $ 20K earlier this week, Michael Sonnenshein, Grayscale’s Managing Director, told Finance Magnates that while “it was no surprise to us that Bitcoin hit $ 20K,” it was “a very symbolic threshold to be met when finally what has been a historic year for Bitcoin. ”
“The continued growth of Bitcoin and other digital currencies this year reflects this ‘coming of age’ story for the asset class, demonstrating the long-term staying power and growing investment interest from investors and mainstream organizations such as each other, ”Sonnenshein told Finance Magnates. “Remember, these are just early days, and we think there’s a lot more running to go.”
“There is much more to go,” indeed, and with this “historic year” coming to an end, there are many questions on the horizon for Bitcoin and beyond: how will further leverage efforts affect the future economy? Will the COVID vaccine pump life into a depleted USD? And what does this mean for Bitcoin?
Alex Mashinsky: In 2021, “Bitcoin Should Be Hitting $ 30- $ 40k During 2021 Based on Current Demand Curve.”
Alex Mashinsky, Chief Executive and Founder of crypto lending company Celsius, told Finance Magnates that he believes during 2021 Bitcoin should “be hitting $ 30- $ 40k during 2021 based on the current demand curve.”
Like Michael Sonnenshein, Alex Mashinky believes that Bitcoin still has a lot of room to grow, especially within the traditional financial sphere: “I still think the vast majority of push-ups right now are retail, He said. “While we are delighted to celebrate a few renowned early adopters from the finance world, their total purchases to date as a percentage of BTC’s total market capitalization are still very low.”
The economic outlook for 2021 could bring more investors, retail and institutional, into Bitcoin markets.
Mashinsky specifically referred to “the ongoing volatility of the USD,” which he says will “drive a lot into Bitcoin.” However, this depends on the point at which continued quantitative easing will cause USD inflation: “if we manage to continue printing and without inflation, then BTC will grow at a slower pace,” he said.
However, Mashinky believes the path ahead will be winding, asserting that “we will see $ 16k before we see $ 26k.”
Indeed, some of the growth that has brought Bitcoin to $ 23K may be based on hype over BTC’s move of over $ 20K. Thus, BTC could see a price fall before building its underlying strength enough to extend beyond $ 25K.
“We need mass adoption for sustainable crypto growth, which means at least 500 million new users coming for a store of value and product,” said Mashinsky. That is, Bitcoin needs more people to hod for the long run.
If that can happen, then anything is possible: when asked what the BTC price forecast for 2025 is, Mashinsky said that while it is “difficult to predict,” Bitcoin should “be over $ 200k by then.”
Zac Prince: “Corporate Treasury and Insurance Company Allocations [of Bitcoin] Will Be Exceeding What We Expect Now? ”2021
Zac Prince, CEO of crypto lending company BlockFi, is even more optimistic about where the price of Bitcoin might go over the next year. When asked about 2021, Prince said he predicted Bitcoin was headed somewhere between “$ 50K and $ 100K.” He also believes it will be less than six months before Bitcoin reaches beyond $ 25,000.
Prince believes that Bitcoin’s growth throughout 2021 will come decisively from institutional and retail investors, especially the latter: “corporate treasury and insurance company allocations will be greater than we currently expect,” he told Finance Magnates .
Beyond that, Prince believes that “Bitcoin will gain stability next year primarily as the financial services infrastructure becomes more robust.”
Prince specifically mentioned that the continuation of “the trend of integrating Bitcoin into large traditional platforms” is important for Bitcoin growth next year. Earlier in Q4 of 2020, PayPal announced that it would allow its nearly 300 million users to buy and pay with Bitcoin and several other cryptocurrencies.
What’s Next for the Oil Market in 2021? Go to article >>
Of course, there are wrenches that could potentially be thrown into Bitcoin’s growth that could affect its trajectory in 2021. Zac Prince specifically mentioned the possibility of “oppressive regulation by major world governments” and “a continued lack of belief in store- asset the asset. valuing property. ”
Still, when we asked him where he thinks Bitcoin will be in 2025, Prince said he also believes Bitcoin will have surpassed the $ 200K point.
Miko Matsumura: “We’re going to see a lot of multiple large crypto companies go public” in 2021
Miko Matsumura, Founder of Evercoin cryptocurrency exchange and General Partner at Gumi Ventures, also believes that “major regulatory action” could destabilize Bitcoin during 2021; further, a “serious competitor or security problem” could reverse Bitcoin’s upward momentum course.
However, Miko believes that if current trends continue, Bitcoin could be at $ 30K by the end of 2021, and that BTC could be looking at $ 100K by 2025. Furthermore, it believes “our that’s going to see a lot of multiple large crypto companies go public “throughout 2021,” including Coinbase, BlockFi, and Celsius, “a factor that could indirectly affect Bitcoin’s price in a positive way.
Additionally, Miko believes retail investors are going to play the most important role in Bitcoin’s upward trajectory. However, Kadan Stadelmann, Chief Technology Officer of Komodo, believes that institutional adoption of Bitcoin could be the most powerful force behind its price.
Kadan Stadelmann: Bitcoin’s “Digital Gold” Narrative Will Hold in 2021
“I’m interested to see what the new ceiling for Bitcoin is,” he told Finance Magnates. “Is it $ 30k? $ 100k? What is so promising is that institutional adoption is happening on a daily basis. ”
Stadelmann drew particular attention to the fact that Banca Generali, an Italian bank earlier this month, was the latest financial institution to announce that it will launch crypto services in 2021. It also announced “Ruffer Investment Company, a London-based investment management company, that 2.5% its fund now includes Bitcoin holdings; more important to note is that the fund changed its payments from gold to Bitcoin, ”noted Stadelmann.
“A few years ago Bitcoin’s narrative as ‘digital gold’ could be folklore or a fairy tale for organizations. Going into 2021, this analogy is starting to become a widely accepted reality, ”he said. “The topics that those in the crypto industry have been talking about for a while are beginning to take shape and gain momentum at a global level.”
Steve Ehrlich: “We Would Not Surprise $ 100k + Bitcoin Next Year.”
Steve Ehrlich, Founder and Chief Executive of US-based cryptocurrency broker Voyager, told Finance Magnates that he believes in 2021 Bitcoin’s rise could be astronomical in 2021.
“We expect continued parabolic shifts in this new macro trend going into 2021,” he said. “With this in mind, it would come as no surprise to see $ 100k + Bitcoin next year.”
Erhlich’s beliefs are based on “the huge retail interest that Voyager is seeing in our customer growth, and the excitement to gain growing interest on Bitcoin and other digital currencies, shows us that the crypto community and new investors are generally share this sentiment. ”
Indeed, “We expect 2021 to be the year that Bitcoin and crypto will take the world by storm, and become established digital assets of choice for our technological future,” he said. “Bitcoin has gone into price discovery, with no apparent opposition, and all Bitcoin investors are never profitable now.”
Of course, the path forward will not be completely linear: “while 20 percent to 30 percent withdrawals are expected, and they are a common place in crypto in cycles of parabolic rise,” Ehrlich said.
However, “what is often not accounted for is the plethora of organizations, public companies, and retail investors on the sidelines trying to buy every dip that presents itself to lock in their jobs.”
“At Voyager, we firmly believe that Bitcoin breaks through its all-time high in 2017, establishing a new macro trend. Bitcoin is such a rare asset, it experiences a supply shock, where there is not enough Bitcoin to meet Global demand. This basic economics can easily rock Bitcoin further. ”
What are your thoughts on where Bitcoin is headed in 2021? Let us know in the comments below. Special thanks to Miko Matsumura, Alex Mashinsky, Zac Prince, Kadan Stadelmann, Steve Ehrlich, Michale Sonnenschein and to all who submitted plots for this piece. Happy holidays!