In 2021, under the most optimistic scenario, experts predict an increase in the bitcoin rate to $ 90 thousand.
The volume of transactions with cryptocurrency in Russia from November 2019 to November 2020 increased by 222%, representatives of the international platform for trading bitcoins Paxful told Izvestia. The largest increase occurred in the spring, when the number of such transactions doubled compared to the first quarter of 2020. The number of users has increased by 309% in 12 months. The surge in interest in cryptocurrency was accompanied by an explosive growth in its value. In 2021, under the most optimistic scenario, experts predict an Exit Fiat Exit Fiat increase in the bitcoin rate up to $ 90 thousand.
Exit from Fiat.
In the spring of 2020, the volume of transactions with cryptocurrency was twice as high as in winter. At this time, Russians began to use it more and more often so as not to lose money due to currency depreciation, Pax believes. According to the company, over the 12 months since November 2019, the volume of transactions with this asset in Russia has more than tripled (by 222%).
Analysts believe that the main reasons for this interest are not hype and not the desire to make quick money, as it was in 2017, when bitcoin and altcoin were just beginning to gain popularity. Economic uncertainty, falling rates of the national currency and low rates on deposits turned out to be the main incentives for Russians to invest in crypta.
While, for example, Sberbank offers a 3% rate on the savings deposit, and the annual inflation rate is about 4%, keeping money in this way becomes absolutely unprofitable.While, for example, Sberbank offers a 3% rate on the savings deposit, and the annual inflation rate is about 4%, keeping money in this way becomes absolutely unprofitable. Therefore, the population is looking for other ways of investing, for example, in bitcoin, in order to earn, and not lose 1% in the bank, said Anton Kozlov, Development Director in Russia Paxful.
On December 30, for the first time in history, bitcoin crossed the $ 28.5 thousand mark. The increased demand for cryptocurrency pushed retail and institutional investors to invest in this asset even more. Its qualities such as high volatility, applicability in everyday life along with fiat money make it attractive for saving and accumulating savings, experts say. For example, in the fall of 2020, large technology organizations Microstrategy, Stone Ridge and Square invested more than $ 600 million in bitcoin in total. Such large investments cause a rise in prices for this crypto, and similar coins by reducing their number on the exchange.
The range of price fluctuations in 2021 will be at the level of $ 25-50 thousand, predicts the head of the data analysis department of CEX.IO Broker Yuri Mazur. Moreover, by the end of the year, under the most optimistic scenario, the bitcoin rate may reach $ 90 thousand. The expert believes that such assets will stabilize and begin to decline after the end of the pandemic.
Alexey Kiriyenko, EXANTE Managing Partner, also believes that the market sentiment for 2021 is positive. However, he emphasizes that investors should watch closely for corrections, which necessarily come after a sharp increase. In the coming year, traders are planning the range of the bitcoin rate from $ 20 thousand to $ 100 thousand, the expert said.