How will bitcoin (BTC) prices change in 2021?


January 6, 2021

The monthly rate of increase/decrease peaked at +82 per cent since early December, but has fluctuated ever since. We summarize the views of the experts who predict the future of the bitcoin market.

JP Morgan Chase analyst Nikolaos Panigirtzoglou predicts that in the next few years, bitcoin's price and market value will eventually match that of gold investments.

The market value of Bitcoin exceeded $500 billion between the end of the year and the New Year, but Panigirtzoglou said that if it matched the gold market, which includes derivatives, it would be worth $146,000. Hopefully. On the other hand, he explained that the key condition for doing so is to reduce bitcoin volatility, which is a barrier to entry for institutional investors, and that it will take years to analyze.

The current upmarket is expected to continue in the near term, although it may reach $50,000 to $100,000, but it will be difficult to maintain that level.

Comparisons with "gold markets" with similar alternative assets, such as digital gold, are rising.

SkyBridge Capital, a leading New York-based investment firm, points out that bitcoin is worth just $500bn, compared with $10tn for gold. Assuming that the market will expand to the same level in the future, the theoretical value is $535,000, or about 16 times the current price.

Tom Lee, the famous analyst

Tom Lee, a prominent analyst at CNBC's economic program Fast Money, has predicted that the bitcoin market in 2021 will surpass the market in 2020, with about 300 percent gains and losses recorded so far. When he saw something like 2017, he developed his theory.

Tom Lee explains that monetary easing against the new corona virus has weakened the dollar and enhanced Bitcoin's reputation as a "risk hedging asset". If the dollar continues to fall, this could be a factor in the rise in bitcoin prices, according to analysts.

David Grider, a Digital Assets analyst at Fundstrat, an American investment fund run by Tom Lee, said in an investor report released in late December that bitcoin prices would reach $40,000 by the end of 2021.

Lee predicts that 2021 will continue to be strong, given the long-term bullish trend after a half-life in 2016.

British investment analyst: Russ Mold

Russ Mould, chief investment officer of AJ Bell, a British investment firm, also compares bitcoin and the gold market.

He points to macroeconomic factors that have a significant impact on bond rights in zero interest rate policies and monetary easing policies.

From the perspective of inflation hedging, the value of fiat money has declined due to monetary policies such as US-led quantitative easing (QE), the total supply of 21 million bitcoins and the stability of the gold market. Annual supply (about 2 per cent a year) is likely to be outstanding.

Paolo Ardoino, chief technology officer at Bitfinex, the virtual currency exchange

Like Mr Moore, Paolo Ardoino, chief technology officer of Bitfinex, a leading virtual currency exchange, said the growth was driven by the establishment of Bitcoin as a "digital gold" and growing demand from institutional investors.

"It is inevitable that bitcoin's dominant position [market share] will rise after 2020, when the price of Bitcoin will hit an all-time high of $4,000 in April." In the future it is expected to attract attention as a digital gold for individual investors.

Head of US hedge fund: Mark Newton

Mark Newton, chief executive of The US investment advisory firm, expects the bullish trend to continue in the long term, but believes bitcoin will peak and reach its peak in early January.

In the long run, we expect to reach a BTC homebuying level ($150,000- $200,000) on this day.

Bloomberg Investment analyst: Mike McGlone

Bloomberg investment analyst Mike McGlone predicts it will reach $100,000 by 2025, citing past bitcoin trends and its relationship with gold.