Can Bitcoin reach $100, $500K or even $1 million in the long term?
According to experts, in 2020, Bitcoin showed a record increase in value, and this trend will continue. Many experts say that we may see the king of cryptocurrencies break the $ 100K barrier by the end of 2021. According to some forecasts, the crypto king will grow to $ 1,000,000 by the end of 2022.
The price of BTC in 2021 and its demand
The BTC could grow to $ 100,000 in 2021, but pricing at that level “will prove unsustainable”, JPMorgan said.
For the creator of S2F, there is no doubt that by the end of the year, the cost of BTC will be at least 100 K $.
A Bloomberg analyst said: “The value of Bitcoin can reach $ 500,000 or fall to zero. BTC can either approach the $ 500,000 mark, or it can fail”.
BTC attracts the attention of large investors and well-known companies. The year 2020 was the starting point for the institutionalization of Bitcoin. Bitcoin, otherwise called the king of cryptocurrencies in 2020 and at the beginning of 2021, has reached levels never seen before in its entire history of existence.
At the time of writing, his price according to CoinMarketRate is $ 31,715. Since the value of Bitcoin is being heavily influenced by its demand, its price has surged, reaching an all-time high of $ 41,941 on January 8, 2021, as large companies have invested large amounts of money in it.
Knowing that the price of Bitcoin depends on supply and demand, investors believe that once the crypto asset reaches the figure of 21 million BTC in circulation, its price will rise significantly, given that there will be no more supply. So the more demand there is, the higher the price will rise.
The total amount of Bitcoins in circulation is more than 18 million. Source: CoinMarketRate
Bitcoin technology is very complex. BTC is produced by mining, by solving complex mathematical tasks every 10 minutes. The miner that is to solve the puzzle one of the first and to complete the transaction receives a reward in the form of new coins.
Every four years, the BTC goes through a process called halving. It halves the rate at which new coins are mined. In May 2020, the BTC experienced the third halving in its history, which means that the supply becomes even more limited.
On top of that, we have Paypal, which allows users to buy cryptocurrency on its platform and buy goods using cryptocurrency as a form of payment. In addition, large, trustworthy companies have invested huge amounts of money in Bitcoin, such as Microstrategy, worth $ 1.3 billion.
Thus, the supply is reduced, and we are approaching the point where there will be no more supply. Still the demand will remain which means that the price can only grow.
Analysts believe that Bitcoin can reach figures such as $ 100,000, $ 500,000, or even $ 1 million. But is it possible, or is it just an exaggeration? Let’s find out.
Can the BTC reach $ 100,000 in 2021?
According to many analysts, Bitcoin may get to $ 100K by 2021. While six figures may seem like an impossible mission to many, it seems like it’s possible when it comes to predicting value for Bitcoin.
The creator of the popular Bitcoin prediction model S2F Plan B last fall tweeted that by December 2021, Bitcoin may reach 100 thousand.
According to his foresight, there is clear evidence that the supply of Bitcoin is shrinking. In his tweet, he mentioned that he trusts his model and that “Bitcoin will be valued at $100-288 thousand by December 2021.” As we mentioned above, on May 11, 2020, there was a halving of Bitcoin, further limiting supply. Therefore, the BTC has every chance to grow in value.
In addition, Brian Estes, head of Off The Chain Capital, said that for BTC, an increase from $ 18K to $ 100K over the course of a year is a mere trifle. According to his forecast, by the end of the year, the BTC will be able to reach a cost of $100,000 to $ 288,000.
Moreover, Tom Fitzpatrick, a senior analyst at US financial giant Citibank, wrote a report highlighting the similarities between the 1970s gold market and Bitcoin.
Fitzpatrick said that the end of 2021 will mark the value of BTC at $ 318K, which indicates its limited supply, ease of cross-border movement and unique property.
In addition, JP Morgan said in a note that the crypto asset could grow to $ 146,000 in the long run as it would compete with gold. JP Morgan sees Bitcoin as an “alternative” currency, as millennial investors prefer “digital gold” to traditional gold, and stimulate demand for the cryptocurrency.
500K – is it possible or not?
Analysts believe that the crypto king can go beyond $100K and approach the mark of 500 thousand. Back in September last year, Mike McGlone, an analyst at Bloomberg Intelligenc, said that the BTC will reach $ 500K, or may fail.
The fact that Bitcoin will reach $500K does not even doubt the founder and CEO of Ark Invest Catherine Woods believes that the institutional demand for Bitcoin can raise its price, well, at least to this mark.
According to Katherine, the Bitcoin price could rise “somewhere in the 400K to 500K range.” Woods also noted that Bitcoin is the most recognized currency of the cryptocurrency ecosystem, ” equivalent to the dollar in the fiat currency system.”
One Million Dollars: Beyond Fiction
According to the former head of the hedge fund Goldman Sachs, the BTC will grow to $ 1 million in 5 years because of the “huge money wall”.
“Bitcoin may reach the $ 1 million mark. $ by 2022, ” Seth Ginns said.
Analysts also already believe that the coin can reach $ 1 million, as it has demonstrated its potential thanks to the recent price increase and the factors mentioned above.
Coinfund Managing partner Seth Ginns, speaking from Bloomberg, also noted that Bitcoin could reach the $ 1 million mark by 2022.
He stressed that the decisive factor that can affect the growth of the asset is its institutionalization. According to him, if we look at the pattern recognition of 4-year cycles of Bitcoin, the price of 150 to 250 thousand dollars looks like a basic option. Ginns also said that Bitcoin could reach a million by 2022, which is a shorter period than many expected.
“We can move on to the next cycle and see Bitcoin growing from $500k to 41 million,” Ginns said.
Also, Clem Chambers, CEO of the Private Equity website ADVFN.com, in an article for Forbes admits that he is convinced that Bitcoin can reach $1 million.
“I came to the conclusion that Bitcoin will grow to $1 million”, Chambers said.
He also explained that printing money will increase inflation, which may push investors to buy more cryptocurrencies.
“Right now, there are only about 18 million Bitcoins (maximum 21 million), and if any major economy or group of small countries plunges into hyperinflation, that alone will put the cryptocurrency into orbit,” Chambers wrote.
Moreover, earlier in 2020, in an interview with Stansberry Research, Raul Pal, a former Goldman Sachs hedge fund manager who founded Real Vision, said that the price of BTC could reach 1 million in five years. Pal noted that “a huge avalanche of funds is already being spent on this.”
In addition, he said that this could happen because there is a lot of interest in investing in Bitcoin.
Growing demand for cryptocurrencies for a global audience
Compared to 2017, experts are now talking about Bitcoin in a different tone. Corporations, investors, and others are looking for opportunities to use this crypto asset to diversify their portfolios. This brings mass adoption much closer, and factors such as the weakening dollar and the pandemic have made Bitcoin a sought-after asset.
Bitcoin is gaining acceptance as a payment method. Platforms such as PayPal have announced that users of the platform will be able to buy and sell a crypto asset and make purchases using it. This announcement gave Bitcoin access to the 350 million users who use PayPal as a payment platform. PayPal’s competitors have also made similar announcements about increasing the usefulness of Bitcoin as a payment method.
Most Bitcoin forecasts state that the leading cryptocurrency will continue its rally in 2021. This year, significant interest in BTC is expected from both investors and regulators. It is clear that the speed of adoption of the cryptocurrency will increase, which will only lead to an increase in the price. As experts predict a record year for BTC, all we can do is wait and see how it develops.
However, it should be noted that no one can know exactly what price the asset may reach in the future, although the above BTC forecasts come from reliable financial analysts. Yes, given the demand from institutional investors and the development of the market, Bitcoin can still achieve the above indicators.
We should also keep in mind that cryptocurrencies are attractive to millennials who aren’t very interested in stocks, bonds, or real estate. They see cryptocurrencies as a way to become independent of the traditional financial system. So with the generational change, the demand for Bitcoin may also increase.