Due to the dollar and increased adoption, the bitcoin price could triple by the end of 2021. The market cap of BTC could reach a trillion dollars in the current bullish cycle.
2021 is barely kicking off and Bitcoin is in the third consecutive week of record high prices. The participation of institutional investors is very important as they increase the levels of BTC entering Coinbase and other trading platforms. Analysts are shocked, at this point there will be a few surprises if the cryptocurrency manages to reach $ 40,000 or if the whales decide to make a profit by blowing the price.
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At the time of publication, Bitcoin traded at $ 34,034 with a 9.92% profit in the past 24 hours. On the weekly and monthly charts, BTC recorded gains of 21.80% and 65.92% respectively. Its market value has reached 600 billion dollars.
$ 1 trillion Bitcoin market cap?
Analyst Nik Patel said that if the cryptocurrency behaves like the previous bullish cycle in 2017, the Bitcoin price could reach $ 47,000.
As the above image shows, Bitcoin could continue to rise and then drop 39% from $ 29,000 to the support area before resuming its upward trend at the target price. Patel believes that $ 360,000 is a price where the upward curve and resistance channel converge, but he said he would be “very surprised if we approach this price”.
Fundstrat Global Advisors co-founder Thomas Lee expects the price of Bitcoin to triple by 2021. Based on $ 30,000 for the price of the cryptocurrency, Lee predicts that by the end of the year BTC will rise to $ 90,000 due to two factors: the weakening of the US dollar and the adoption of BTC by the younger generation.
Investors still need to follow developments in the stock market. Lee believes that if this market crashes, BTC could follow. In response to Lee's prediction, Kraken's Chief of Growth Dan Held called it "too low" and thinks the crypto market is in a "super loop".
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Unlike 2017, it is described as the 2.0 version of Bitcoin, the economic crisis caused by the Pandemic Covid-19 and the participation of institutional investors marked a "new stage" in the crypto market and it looks like it will continue.
Held does not consider the fact that BTC is going through a normal fluctuating market and if adoption reaches 1% of the world's population it could go beyond $ 100,000.
Ecoinometry is the main factors behind the Bitcoin rally, which is determined to remain valid until the established 2021. The first is the impact of the reduction in BTC supply due to the 2020 halving. Second, BTC's market capitalization is "relatively small relative to the nature of a store of value".
This suggests that adoption is still early and is pushing the price to new heights with a wide margin for it to increase. Ecoinometrics estimates that BTC's market cap will reach one trillion or even 10 trillion dollars:
There is a long way to go, so if you keep a long enough investment horizon you can expect Bitcoin will continue to perform better.
Bitcoin (BTC) price is currently finding buyers at $ 33,527.68 dollars.