What is your prediction for Bitcoin price in 2021, five years from now? If you can look at the cryptocurrency's network growth or technical outlook and forecast a value, then you are joining a list of several experts and non-experts who have put a date and/or price figure on the value of BTC.
From the days of "Bitcoin for Pizza" to the 2017 bull market and now the explosive 2020/2021, it's unlikely many within the crypto sector and across the financial markets have not predicted the future of Bitcoin's value.
In this article, we list the top 5 most recent BTC price forecasts.
Top 5 predictions on Bitcoin's future price
Bitcoin's high price volatility is well-documented: It famously hit $20,000 in 2017 after trading a little over $1,200 earlier in the year. But its value then crashed to lows of $3,800 in March 2020 before exploding in December to reach over $40k.
COVID-19 played a big role in Bitcoin's "Black Thursday" crash and the economic crisis that followed saw institutional demand for a hedge asset send BTC/USD to the moon.
The potential for other crises, as well factors such as the halving, network growth, low liquidity, growing regulation, inequality of wealth, and news events could/and will impact future prices. The value of Bitcoin will therefore move. Where do you think BTC will be in the next few weeks/months/years?
Add your bet to the five expert predictions below.
1. Bitcoin to Peak at $115,212 by August 2021
Bitcoin's price could hit $115k by August 2021, analysts at Pantera Capital have predicted. According to their report dated January 2021, the figure is reflective of the short and long-term impact of past Bitcoin halvings.
Per the report, previous predictions, especially those made in April 2020, were mostly accurate. The analysts based their forecast on the stock-to-flow halving model that tracts price pre-halving and post halving.
As such, from Bitcoin's past performance, prices have historically bottomed 459 days before the halving. From halving, rallies average 446 days to a new peak. Thus, the experts believe if all factors remain constant, the BTC will peak in August 2021 at $115,000.
2. Bitcoin to Hit a High of $318,000 by December 2021
Bitcoin could surge to highs of $318 in 2021, an analyst at Wall Street giant Citibank predicted in a leaked report quoted by Forbes.
According to the publication, Tom Fitzpatrick considers the high volatility that characterizes Bitcoin's price movements will remain in play through the current bull cycle. As BTC price moves towards that peak, the analyst predicts it would become 21st-century's "gold"- apparently referring to the idea that Bitcoin will become so valuable many investors will look to it as the ultimate safe-haven asset.
The analyst expects Bitcoin to benefit from the highly anticipated change in monetary policy. The changes could devalue fiat currency and work in favor of Bitcoin and other cryptos.
The anticipated widespread distribution of COVID-19 vaccines could also have a positive impact on the crypto market. All these factors, coupled with the effect of unthinkable rallies, suggest that Bitcoin's price is set to rise further.
The leaked report does mention painful corrections that happen after massive price rallies for Bitcoin. So while pullbacks could happen to slow the uptrend, Fitzpatrick forecasts Bitcoin is yet to peak and that this will likely happen by the end of 2021.
3. Bitcoin's price will peak in early 2021
BTC price will rally higher during its current bull cycle, but the uptrend will pause in early 2021. That's according to Mark Newton, the president and founder of Newton Advisors.
Speaking to CNBC's "Trading Nation," he said that Bitcoin's surge in 2020 included a multi-year monthly streak. As a result, many institutions have turned to "digital gold" as a store of value.
The investor also observed that interest in BTC as suggested by Google searches had skyrocketed in December 2020. However, it quickly dropped, pointing to the coin's high volatility. According to this modest BTC price prediction, the peak might already have come in early 2021.
At the moment, Bitcoin's price is around $32,350, slightly lower than its apex price of $42,000 reached in early January.
4. Bitcoin Surge to $1 Million in 5 years
This Bitcoin price prediction was made by a former Goldman Sachs hedge-fund chief projects officer. According to him, Bitcoin's price could hit $1 million in five years. In a 7th October 2020 interview with Stanberry Research, he said that the wave of institutional funds pouring into the asset is responsible for the price increase.
According to the expert, the price will keep increasing and decreasing throughout until it hits the figure in 5 years. This indicates that Bitcoin offers the best long-term investment opportunity. However, short-term traders can still take advantage of the price volatility.
5. Bitcoin to remain highly volatile to downsides in 2021
The then US Treasury secretary nominee (now confirmed) Janet Yellen warned that Bitcoin could remain extremely volatile in 2021 and beyond. She projected that its price could significantly drop instead of increase.
According to Yellen, although a valuable addition to the market, Bitcoin might not be a stable store of value. Moreover, the currency doesn't constitute legal tender. As such, the US government could be interested in limiting its usage.
Given the Treasury Secretary's concerns, the government could yet increase regulatory scrutiny, which has the potential of reducing the price to unimaginable levels.
Wrap Up
Bitcoin price predictions come true every day, from quite achievable ones to outrageous ones like the infamous John McAfee's. While these are all forecasts, it is notable that Bitcoin's high volatility can flip a prediction on its head. Factors such as news events, a fragile regulatory environment, and low liquidity likely to continue impacting price movements. For that matter, while investors, traders, enthusiasts need to take these projections seriously, they benefit more from conducting independent research and mitigating risks before getting involved.
