Bitcoin price prediction: What happens next?
Bitcoin has been hit hard in 2021. But is it about to make a comeback?
- Chinese impact
- Crash and recovery
- A new bounceback?
- What is the expected price of bitcoin in 2021?
- Bitcoin price prediction: what do investors think?
Bitcoin (BTC) price predictions frequently fall quite wide of the mark. Sceptics who make gloomy bitcoin price forecasts usually end up red-faced… as do those insisting that a $1m price tag is just around the corner.
But what has been happening to bitcoin’s price in recent months? Is this any indication of its future value? Read on to find out if we can make a bitcoin price prediction.
On Wednesday 19 May 2021, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions. This prompted the biggest inflow to currency exchanges since March 2020.
Announcing the ban, three state-backed organisations stated that virtual currencies “are not supported by real value“. They maintained that volatility in the cryptocurrency market had seriously infringed on “the safety of people’s property“ and “the normal economic and financial order“.
Understandably, the effect on the markets of one of the world’s biggest economies banning crypto was serious. Bitcoin, the world’s biggest and most famous crypto, was hit particularly hard.
While the price of BTC had been growing in-line with the overall crypto market, the bitcoin price reached an all-time high of $64,804.72. Yet by 14 April, it had started to go down, prompted at least in part by Tesla CEO Elon Musk saying his company would no longer accept the currency as payment. The bitcoin price was already down by around a third to $43,196.05 at the end of 18 May, but Beijing’s announcement made matters worse.
China then announced on 24 September that the country had declared all crypto transactions illegal, sending the bitcoin price down by 8.1% and wiping $200bn off the total cryptocurrency market.
The BTC price dropped as low as $41,108, but on 5 October has rebounded above the $50,000 mark once again – the day that Gary Gensler, chair of the US Securities and Exchange Commission (SEC), said that the US had no plans for a similar crackdown on crytpo.
Crash and recovery
By 13.14 BST on Wednesday 19 May, the BTC price stood at $38.598.73, meaning BTC was below $40,000 for the first time since early February. Just one hour later, it had gone down still further, by over 17%, to reach $31.926.67.
These losses were reflected across the board as investors began panic-selling their cryptos. There was a small recovery and the BTC price stood at $40,467.10 about four hours later. It went back down to $35,709.99 in the early hours of Thursday 20 May, but soon rallied and broke back through the $40,000 barrier later that morning.
And then came the crash of 7 September, when BTC dropped just below $43,000. This was the same day that El Salvador officially made the crypto a legal tender. However, at time of writing on 7 October, the bitcoin price had risen above the $50,000 mark once again and was trading at $54,170.65.
The questions now are: will this last? Will it now beat April’s all-time high of $64,804.72? And what will happen next?
As ever, it’s crucial for you to do your own research around BTC price forecasts for 2021 and beyond – and think carefully before investing in a volatile asset.
A new bounceback?
One person who believes that BTC could be about to bounce back from this year’s setbacks is Antoni Trenchev, co-founder and managing partner of digital assets institution Nexo. Said Trenchev:
“Every bull run within crypto has seen five to seven declines in excess of 30%, and this cycle is no exception. Ethereum is at a different stage in its cycle — the market seems to be struggling to stop it in its tracks. More than anything, what this undeniably large correction and those before it prove is that the crypto market is resilient, that it’s a long-term game ill-suited to the weak-handed.”
Many BTC forecasts rely on the argument that this cryptocurrency is cyclical – that it tends to repeat itself – which lends credence to Trenchev’s comments.
His comments were also supported by Ganesh Swami, CEO and co-founder of blockchain data provider Covalent, who said:
“In the bull market, seeing these big drops is common. The last time we saw a bull run, bitcoin dropped at least half a dozen times by 20%–30% before it went to the then all-time high. With hundreds of projects getting built across various blockchains, key crypto segments like DeFi are up at $71bn of their total value locked; NFTs are getting their fair share of attention in mainstream media; and Ethereum, the second-largest blockchain in the world, is getting multiple efficiency updates and moving to proof-of-stake in the upcoming months. The markets are bound to make a quick comeback.”
What is the expected price of bitcoin in 2021?
So what will bitcoin be worth in 2021? When it comes to figures, Wallet Investor suggests the bitcoin price will be $58,356.70 by the end of the year. It also says that BTC could reach $77,453.20 in a year’s time, which certainly suggests faith in both BTC and crypto at large. The same site is suggesting it will continue to improve through to 2026, hitting $195,751 in five years’ time.
Meanwhile, DigitalCoinPrice is also optimistic, saying it will hit $97,291.61 next year, $191,950.87 in 2026 and $249,800.79 two years after that.
LongForecast says BTC could average $76,932 at the end of the 2021. It also suggests that it will hit $160,133 in October next year and then $170,014 by the end of 2022. The site also suggests the bitcoin price will reach $157,250 in October 2025.]
Always remember, however, that predictions can also be wrong, so you should always do your own research first.
BTC/USD price history
|Oct 17, 2021||61021.70||140.35||0.23%||60881.35||61403.20||60483.95|
|Oct 16, 2021||60876.75||-813.70||-1.32%||61690.45||62390.70||60150.70|
|Oct 15, 2021||61695.45||4340.85||7.57%||57354.60||62908.70||56857.75|
|Oct 14, 2021||57353.25||-19.75||-0.03%||57373.00||58553.95||56799.50|
|Oct 13, 2021||57372.50||1378.95||2.46%||55993.55||57811.50||54220.00|
|Oct 12, 2021||55997.35||-1498.75||-2.61%||57496.10||57711.40||53648.30|
|Oct 11, 2021||57494.40||2813.25||5.14%||54681.15||57841.15||54437.25|
|Oct 10, 2021||54678.25||-278.95||-0.51%||54957.20||56075.95||54104.95|
|Oct 9, 2021||54960.35||991.15||1.84%||53969.20||55495.70||53679.20|
|Oct 8, 2021||53968.10||161.75||0.30%||53806.35||56172.25||53621.00|
|Oct 7, 2021||53806.50||-1547.05||-2.79%||55353.55||55379.15||53395.50|
|Oct 6, 2021||55351.90||3852.65||7.48%||51499.25||55789.25||50411.75|
|Oct 5, 2021||51494.90||2245.45||4.56%||49249.45||51912.20||49062.70|
|Oct 4, 2021||49251.95||1015.30||2.10%||48236.65||49521.20||46915.70|
|Oct 3, 2021||48240.40||573.05||1.20%||47667.35||49253.15||47135.20|
|Oct 2, 2021||47667.45||-509.55||-1.06%||48177.00||48368.70||47460.65|
|Oct 1, 2021||48171.00||4341.35||9.91%||43829.65||48500.50||43283.20|
|Sep 30, 2021||43820.75||2292.30||5.52%||41528.45||44115.00||41411.70|
|Sep 29, 2021||41528.45||494.90||1.21%||41033.55||42597.15||40757.55|
|Sep 28, 2021||41031.45||-1140.30||-2.70%||42171.75||42792.30||40886.30|
Bitcoin price prediction: what do investors think?
It’s important not just to listen to crypto heavyweights who are making a bitcoin price prediction. Getting a feel for what the public thinks is also important – not least because this could offer crucial hints about when many retail investors may consider selling up.
A Kraken survey which attracted more than 350 responses in November – before the new record highs – found that the average price target for 2021 stands at $36,602. Summarising its conclusions, the exchange wrote:
“Assuming the crypto asset market stays the course, suffice to say that 2021 could be the biggest year for the industry since its birth. However, our findings do indicate that market participants will likely continue to remain concerned over the lingering possibility of unfavourable regulation and/or hacks, scams and thefts.”
Interestingly, though, investors don’t appear to be as optimistic on a longer-term scale. A Genesis Mining poll recently revealed that barely half of bitcoin owners believe this cryptocurrency will be worth more than $20,000 come 2030. The prospect of regulation – or countries even moving to ban BTC altogether – weighs heavily on their minds.
Trade Bitcoin to US Dollar – BTC/USD chart
The current set of predictions seem to be cautiously optimistic. However, we will have to see whether the highs reached in April 2021 represent something that can be returned to easily by the latest bull run, or if this is a freakish bubble.
We also need to keep our eyes on the market over the coming days and weeks to see how well it continues.
We’ve seen that the likes of Wallet Investor and DigitalCoinPrice think there is the scope for this sort of growth somewhere down the line. However, there is still the possibility of some price dips along the way, and it’s worth noting that predictions aren’t always accurate.
Sometimes it’s worth noting the words of Dogecoin co-founder Billy Markus, who said:
If you are following the current upturn and have the stomach, then it might well be. If you think it will soon crash again, then maybe not.
As ever, you need to remember to exercise caution, do your own research, and never invest more than you can afford to lose.