No doubt, Bitcoin had a successful 2020, hitting new highs and breaking its 2017 all-time high. This year has equally seen numerous predictions, with Bitcoin performing more than expectations. Digital asset’s volatility makes it difficult to pinpoint price predictions due to many factors affecting crypto pricing.
Notwithstanding, the digital asset’s good year paved the way for other digital assets, allowing the industry to explore more opportunities than it has ever done. Thomas Lee previously predicted that Bitcoin would have a good 2021, even before hitting its $29,000 price range. The currency’s over performance instigated Lee’s new 300% price increase for the digital asset.
Thomas explains his prediction
Lee assured that next year would be like 2017, and he is expecting a better performance from Bitcoin than this year’s efforts. Finally, he said he expects something above the 300% increment in an interview in CNBC when he was asked about his thoughts on Bitcoin for 2021.
He mentioned his opinion on the dollar being weaker than the digital asset, being a major factor the price will surge impressively next year. He opines that the youths have a preference for cryptocurrencies when compared to gold. Gold’s underperformance in 2020 is a key factor causing numerous investors to find a suitable alternative and reduce their exposure to the yellow metal.
Similarly, CNBC host Brian Kelly had previously spoken on his concerns on the weakening dollar. He revealed that Bitcoin would perform impressively being created in this environment where the government tends to print too much money, and countries are not striving to get a strong currency to stabilize its value. Money printing is a major concern for investors, and some sources claim that the factor pushed many investment companies, individuals, and businesses to invest their funds in cryptocurrencies.
Bitcoin’s 2020 performance
The digital asset, which recently hit a new all-time high, is becoming a bigger threat to smaller cryptocurrencies, which have not to gain much dominance in the industry. The currency has a successful rally that contributed to skyrocketing prices all year long. Another major factor that establishes Bitcoin’s performance is the large monies investing in the asset.
The new fundings have stopped the prices from correcting negatively and gave it some stability. Earlier on, during the pandemic, the currency saw its heaviest fall this year when it traded at $3,000. Fortunately, that factor did not discourage serious investors from purchasing.
Thomas Lee gives some warnings concerning Bitcoin’s price correction. The digital asset has had unexpected corrections since 2017, and he admitted that the currency doesn’t have much holders still. He said Bitcoin is still very tiny, and he doesn’t think up to a million people have the cryptocurrency.
Lee revealed that corrections in stock would lead to a fall in Bitcoin prices due to their relationship. On a daily basis, investors are rushing to invest in the scarce asset, and some claims suggest that Bitcoin is far more scarce than gold. People increase gold mining every year, while Bitcoin mining works in a more complicated way.
Also Read: Bitpay’s Sonny Singh Predicts Bitcoin Hitting $45,000 By February
