Bitcoin is likely to have another “record-breaking year” in 2021, with prices expected to rise 50% and possibly double with its current momentum, is my rather bullish prediction.
It comes as the original cryptocurrency smashed through the $23,000 barrier Thursday day for the first time ever.
The previous high was in December 2017 when the Bitcoin price hit $19,850.
It’s a major milestone for Bitcoin and I doubt that we’re at the end of the current, historic bull-run.
All financial markets experience peaks and troughs – both of which, of course, can benefit investors – and the cryptocurrency market is no different.
Inevitably, we will soon see some pullback on prices and more volatility as traders sell Bitcoin at record high prices.
This is especially true as the market is heavily influenced by so-called ‘whales’, major investors who hold lots of the digital currency and can therefore have a major impact on prices when they buy or offload.
However, these lower entry points can be good for smaller investors to increase their exposure to cryptocurrencies.
Indeed, it could prove to be particularly beneficial as Bitcoin is, I believe, likely to have another record-breaking year in 2021, with prices expected to rise at least half again and possibly double if the activity remains as it is now.
Some of the world’s biggest institutions – amongst them multinational payment companies and Wall Street giants – pile ever more into crypto, bringing with them their enormous expertise and capital, this in turn, swells consumer interest.
Added to that, with governments continuing to support economies and increase spending due to the pandemic, investors are increasingly going to look to Bitcoin as a hedge against the legitimate inflation concern.
Previously I’ve observed that inherent traits of cryptocurrencies are ever-more attractive. These characteristics include that they’re borderless, making them perfectly suited to a globalized world of commerce, trade, and people; that they are digital, making them an ideal match to the increasing digitalization of our world; and that demographics are on the side of cryptocurrencies as younger people are more likely to embrace them than older generations.
Of course, there will be market ups and downs, but let there be no doubt: the longer-term price trajectory for Bitcoin is upwards.
Nigel Green is founder and CEO of deVere Group. One of the world’s largest independent financial advisory organizations, de Vere does business in 100 countries and has more than $12 billion under advisement.
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