- March 5, 2021
- Posted by: icoblock
- Category: Crypto News
Predicting is a thankless task, but looking at various ideas and assessments allows you to look at the situation from the outside and take action that is more important than the first calculation. Bitcoin futures estimates include both positive and negative predictions. We will try to organize and decide whether this or that event is possible.
“Bitcoin is the mother of all bubbles” – this is how analysts at Bank of America coined the first cryptocurrency. In particular, Michael Hartnett describes the growth of bitcoin as a “strong act of inflation” by the Fed. The main price index, CPI, is unclear because the calculation method is “politically motivated.” An accurate indicator of inflation by 2020 is the Bitcoin chart.
We are in a very early stage of a financial revolution. Cryptocurrencies offer superior solutions amid central bank money printing and inflation woes. Control is essential, and that’s the main value proposition of digital assets. Instead of mentioning numbers, I’ll instead predict that 2021 is a year where institutions position themselves in Bitcoin and crypto. Overly, this will help drive awareness and adoption, a net positive for the crypto ecosystem says – Bohdan Prylepa CTO of Prof-it Blockchain Ltd and COO in Bitcoin Ultimatum.
But the rise in Bitcoin is just a symptom of a common problem. Social inequality has worsened in the 21st century, and the value of US financial assets has tripled the size of GDP. When the critical moment is reached, there will be tears, and a Bitcoin bubble will explode.
It sounds shocking, but cryptocurrency predicted the same thing in 2017. It was then compared with the 17th-century tulip fever in Holland. However, Bitcoin’s prediction has not been fulfilled: after three years, it has renewed ATN (entirely complete).
Significant collapse of bitcoin is not uncommon: in 2011, prices dropped from $ 32 to $ 2, and in 2014 – from $ 1,000 to $ 170. However, enduring investors made as much profit as the price it rose above the previous ATH.
The prediction of bitcoin collapse sounded very different. Scott Minerd, a chief investment officer of Guggenheim Partners, believes that Bitcoin has already reached its peak in 2021 and is now expected to adjust to the $ 20,000 level. However, if a historical match is drawn, a collapse could occur at $ 4,000. But the chances of such a decline are slim.
As the value of Bitcoin increases, so does the number of participants, which makes the system more stable and the price not much worse. In 2020 came institutional players. They are distinguished by a long-term plan against the actions of young thinkers who close the purchase at the initial risk. Therefore, $ 1,000 BTC wallets’ value continues to grow, although the value has dropped from the current $ 42,000 to $ 30,000.
As we have seen, institutional investors are fleeing real inflation, which has not yet fully manifested itself. At the same time, Biden plans to launch a new antiquities program with a total value of $ 1.9 trillion. The Fed will have to re-issue money to exchange government bonds. The regulator’s balance was already doubled by 2020 – why not a bubble?
If most institutional investors view Bitcoin as a place for inflation, new ways to boost the US economy will raise interest rates on cryptocurrencies. This rendered Scott Minerd’s ATN $ 42,000 2021 term conclusion invalid.
The current price downturn has not stopped the flow of big money to cryptocurrencies. A 30% correction should be interpreted as a common ground for high-volatility Bitcoin.
In recent years, the most important psychological estimates for Bitcoin price movements are multiplexes of $ 20,000, which brings us to the $ 60,000+ mark if Congress approves the $ 1.9 trillion antique program.
Much, if not all, will depend on the attitude of key regulators in relation to digital assets. At present, they are neutral. This opens up opportunities for long-term planning. JP Morgan believes that Bitcoin will gradually remove gold from the investment – this will lead to a rise in prices to $ 146,000. Citibank predicts Bitcoin value at $ 318,000, while Blockchain manager Peter Smith predicts $ 500,000 by 2030.