We just entered the new year with a new ATH for Bitcoin which touched $34,800 today and we are surely heading towards new highs throughout the next 12 months. This is why I am dedicating this article to the boldest, most daring, and outright obscene price predictions for 2021 and beyond.
In my latest episode of the Crypto Corner Video Podcast I revised the predictions in ascending order, you can check it out below, or if you are more keen on reading, scroll down and enjoy this post.
Indeed, we are in a bull run, a cycle that previously lasted about 2 years, but this time we are witnessing a very different rally than what we experienced in the past two bull runs.
One reason for this is that you can now borrow against BTC collateral. So if you need cash you can get that without selling your coins. Less selling pressure equals higher Bitcoin prices.
Another reason (and more important in my view), is that Bitcoin now seems to have finally come out of the shadows of the dark web and hit the mainstream.
If we look at the last bull run, for example, Asian investors and retail traders were reported to have been the driving force. They quickly moved in and out of trades, booked profits, and abandoned crypto markets not soon afterward. This move sucked out much-needed liquidity from crypto markets and crashed asset prices. The retail investor is often prone to taking higher risks and looking for a way out at the first sight of a market crash. Mass capitulation occurred during the bear market of 2018-19 and many saw grave losses while selling after a 70% drop in value of their crypto assets.
According to crypto-forensics firm Chainalysis, American investors driving the rally the rally this time around. Institutional firms and hedge funds, interested in parking their funds for the long term, are also beginning to pour funds into the asset class. In the long term, such liquidity should help propel future price increases because it strengthens the market and tamps down the intense volatility that has characterized crypto markets.
This year’s rally has attracted increased interest from both retail and institutional investors.
Public companies like MicroStrategy and Square made Bitcoin part of their reserves.
Square which was founded by Jack Dorsey, the current CEO of Twitter snatched 4,709 Bitcoin for $50m, while MicroStrategy purchased $1.13bn worth of BTC. MassMutual also announced the purchase of $100 million worth of Bitcoin in December 2020.
Guggenheim Investments has put 10% of its $5 billion dollars into the dominant cryptocurrency while Grayscale became the largest Bitcoin Trust Fund with a stack of 500,000 BTC.
In the meantime, the world-renowned digital payment service PayPal launched a crypto feature that allowed users to buy, hold and sell cryptocurrencies within its digital wallet.
DBS Bank, which was known for calling Bitcoin a Ponzi scheme back in 2017, has recently announced the launch of a cryptocurrency exchange featuring Bitcoin, Ethereum, Bitcoin Cash and XRP.
JPMorgan, the American multinational investment bank, which was also very much against crypto back in 2017, made several statements recently that Bitcoin’s adoption has only begun and noted that gold will be suffering because of Bitcoin, as money is being shifted towards the digital asset.
Only a few days ago, the largest cryptocurrency exchange in the US – Coinbase – announced its plans to go public after submitting a draft registration statement on Form S-1 with the SEC.
All along, Bitcoin was climbing to its new AT highs and enjoyed another holiday rally, this time surging well beyond prior records to trade above $28,000 for the first time in history. Registering an intra-day high near $28,330 on December 27, the largest cryptocurrency by market cap has extended its rally in the year-to-date to roughly 280%.
Ethereum, the second largest cryptocurrency by market capitalization, also ends the year on a high. Ether’s market cap grew 60% in the third quarter of 2020, going from $25bn to $40.5bn by the end of September.
In the following weeks, the cryptocurrency enjoyed steady growth, which took ETH up by more than $300 with the coin hitting $673.83 on December 17. This price represented a year-to-date growth of more than 420% and a market cap as of today – $83.5 billion, a whole 490% up since its January 2020 value of $14.3 bn.
But for now, let’s focus on Bitcoin and what the so-called crypto gurus: analysts, researchers, hedge-fund managers and other influential figures in the crypto space have been predicting for Bitcoin’s future and most importantly, for 2021.
During the past two halvings, the price of Bitcoin increased by 5,500% on average, followed by a market correction into two accumulation phases. The last Bitcoin halving happened on May 11, 2020, which means we have just started the bullish phase, which could last for more than one year.
Tim Draper: $250,000 by 2022/23
Tim Draper is an American investor whose most prominent investments include Tesla, SpaceX, Twitter, and Coinbase.
The famous venture capitalist Draper believes that the US government’s massive stimulus package will debase the value of the dollar and “send people to crypto.” He also expects that Bitcoin will see massive commercial adoption around the world within this timeframe.
Mike Novogratz: $65,000
In mid-November, billionaire investor and Galaxy Digital founder Mike Novogratz predicted bitcoin (BTC) could reach $65k in 2021. Novogratz forecasted this price range when he gave the “Game of Thrones” star Maisie Williams some advice.
“People are going to Bitcoin because there’s 20 million Bitcoin that will ever be mined, there’s complete scarcity in it. People believe it’s a store of value. It’s a social construct, and you can’t change that,” says Novogratz.
Novogratz suggests that investors will consider Bitcoin not only as a speculative digital asset but as a real store of value.
“Rich Dad Poor Dad” Author: $75,000
Robert Kiyosaki, best-selling author, entrepreneur, and investor is constantly recommending his followers buy Bitcoin and gold. He believes gold is going to reach $3,000 per ounce, and Bitcoin will hit $75,000 during the next three years.
“Gold and silver are God’s money. Bitcoin is open source people’s money.”
BTIG analyst Julian Emanuel: $50 000
BTIG analyst Julian Emanuel analyzed Bitcoin’s price in part by comparing it to the Nasdaq 100 (NDX), a market cap-weighted index consisting of 103 non-financial companies.
The index reached a peak valuation during the dotcom bubble and crashed soon after before beginning another gradual ascent.
“It took NDX 14 years to rise above its parabolic ‘blowoff top,’ then six years to rise a further 150%. Bitcoin appears poised to exceed the 2017 parabolic ‘blowoff top’ in a mere three years.
“Should Bitcoin’s speed of ascent keep pace with the past three years and the degree of the rally approximate that of NDX, $50,000 per Bitcoin is a reasonable year end 2021 Price Target.”
Anthony Pompliano – “BTC will be $100,000 by December 2021”
Pomp is an absolute icon in crypto who always makes waves in the space, whether it be through his social media accounts, daily newsletter, or podcast. His experience as both founder and partner with Morgan Creek Capital is a primary reason he is so popular in the space. This experience allows Pomp to provide a unique intersection of opinions not often found in the crypto space.
Pomp has become so highly regarded as a crypto analyst that he has been featured multiple times as a guest and panel member on the popular business news channel CNBC.
The creator of the price model called Stock-To-Flow (STF) who goes by the Twitter name “Plan B” thinks BTC is going to hit $100,000 by December 2021, starting its rally next month.
According to the S2F model, the Bitcoin price skyrocketing in 2021 is calculated by its decreasing supply and growing demand. As BTC is halved every 4 years, the supply is decreasing rapidly causing inflation. Thus, there is a theoretical potential for Bitcoin rising.
Alex Mashinky, CEO of Celsius Network: Up to $500,000
When asked by Yahoo Finance if Bitcoin could reach $400,000 or even $500,000, Mashinsky said it will depend on the people who accumulate Bitcoin but don’t sell — the so-called “holders” — if they will sell at prices above $25,000, $50,000 and so on. “If the holder community is going to sit on their hand and not sell anything, then we’re going to get to those price levels very, very quickly,”
The Winklevoss Twins: $500,000
$500,000 is also the figure quoted by Tyler and Cameron Winklevoss – otherwise known as the Facebook co-founder twins, also amongst the largest Bitcoin holders, who founded cryptocurrency exchange and custodian Gemini. They recently predicted that the price could go to $500,000 “one day” on the theory that it eventually replaces gold, which is now worth over $10 trillion.
Guggenheim Partners CIO Scott Minerd: $400,000
He said that “bitcoin was heading for $400,000. Topping even the moonshot price target from Fitzpatrick, this has certainly captivated investors. And where do these sky-high bitcoin price predictions even come from? According to Minerd, the justification for these targets is the scarcity of bitcoin and its relative value to gold.
Guggenheim made the decision to start allocating to bitcoin when the leading cryptocurrency was trading around $10,000
Max Keiser: $400,000
Max Keiser, the financial analyst, and investor is bullish for BTC price, predicting $100,000 in the short term and $400,000 in the long-term
The famous host is predicting Bitcoin’s price to hit $100,000 since the time it was trading at less than $1. This time his $100,000 prediction is based on the COVID-19 pandemic crisis and comparison to gold.
“I am officially raising my target for Bitcoin — and I first made this prediction when it was $1, I said this could go to $100,000 — I’m raising my official target for the first time in eight years, I’m raising it to $400,000,” says Keiser.
These numbers may seem unrealistic for some of us, but let’s go back to 2014 when billionaire venture capitalist Tim Draper predicted Bitcoin price to hit $10,000 by 2018. The statements above may be a message for those who still think about purchasing Bitcoin. It’s never too late to start, and never too early to educate yourself about what you invest into because we also remember the golden rule of Warren Buffett – never invest in something you don’t know.
$100 000 in 2021 – Morgan Creek CEO, Mark Yusko
During a May 6, 2020 interview, the CEO of capital management giant Morgan Creek, Mark Yusko, predicted that bitcoin could easily reach $100,000 in 2021 or 2022. During the discussion, Yusko also insisted that bitcoin’s price could reach $400 to $500K as well. Yusko stated at the time: “If we come to gold equivalence, meaning the market cap of Bitcoin equals the market cap of gold, which I think is perfectly logical, you could easily see that $400,000 to $500,000 price [at] some [point in time].”
Moonrock Capital managing partner Simon Dedic: $150,000
Blockfyre co-founder and Moonrock Capital managing partner Simon Dedic has also shared his 2021 Bitcoin predictions.
Mike McGlone: $170,000
Bloomberg strategist Mike McGlone is even more positive about the Bitcoin price in 2021. McGlone suggests that the leading virtual currency is going to cross the $170,000 mark in 2022.
“The key thing about Bitcoin this year is very simple — it just added a one to the front of the number. Remember, it was around $7,000 at the end of last year. What I’m worried about — if you look at the past performance, which is potentially indicative of the future, next year or two could add a zero to the back of the number.”
What is interesting, Bitcoin had already crossed $19,000 after McGlone’s statement, thus, adding a zero is increasing the future price of the most valuable digital asset to $190,000.
Citibank analyst Tom Fitzpatrick: $318,000
By the end of 2021, BTC will trade at $318,000 according to the prediction from Citibank analyst Tom Fitzpatrick. Fitzpatrick said BTC will likely see ”unthinkable rallies followed by painful corrections.” Furthermore, the Citibank executive said that bitcoin was the new gold with fewer restrictions. “Gold has restrictions such as storage, non-portable, and could possibly be even called ‘yesterday’s news’ in terms of a financial hedge. Bitcoin is the new gold,” Fitzpatrick insisted.
The analyst also considers that in terms of the COVID-19 pandemic people will use digital currencies as a store of value and a hedge against inflation.
JP Morgan: $650,000
A report by JP Morgan estimated the eventual worth of each bitcoin would be $650,000 (£485,763)
The investment bank sees a pattern of increased investments from financial institutions, following the likes of MassMutual and MicroStrategy in getting exposure to Bitcoin.
A report by JPMorgan stated: “Alternative ‘currencies’ such as gold and bitcoin have been the main beneficiaries of the pandemic in relative terms growing their assets for investment purposes by 27 percent and 227 percent, respectively.”
BTC $300,000 by Adam Back
Adam Back, CEO at Blockstream and early electronic cash pioneer believes Bitcoin will surge $300,000 in the next few years.
“[Bitcoin] might not require additional institutional adoption [to reach $300,000] because the current environment is causing more individuals to think about hedging [and] retaining value when there’s a lot of money printing in the world,” said Back in his interview with Bloomberg.
Kraken Crypto Sentiment Survey: $36,000
This year, cryptocurrency exchange Kraken conducted two market sentiment surveys. One in March and the other in November. 72 percent of respondents (for the Nov survey) were comprised of traders and investors.
18 percent of responses came from institutions (broker, custodian, family office, hedge fund, lender, market maker, a private equity firm, proprietary trading firm, or venture capitalist). And the rest 4 percent – from crypto service providers (ATM, exchange, lender, payment processor) and miners.
While all of them predicted somewhat decent BTC price projections for this year, almost everyone called for an average bitcoin price target of $36,000 next year. Some even put the median bitcoin price target at $25,000 for 2021.
But some predictions went a little over the board.
Approximately, 8% of respondents provided a price target greater-than-or-equal-to $100,000, roughly 20% of respondents reported a price target greater-than-or-equal-to $50,000.
Not everyone is so enthusiastic about bitcoin’s future value, as the Seeking Alpha financial columnist Anton Wahlman believes bitcoin is worthless and will go to zero.
“Sometimes there’s something so absurd that you hardly know where to begin to make the argument,” Wahlman’s recent editorial insists. “For it’s so obvious and self-evident that it should not have to be explained. Bitcoin and similar cryptocurrencies are such a case,”
Oliver Kamm, a financial contributor for The Times UK, told his readers that “cryptocurrencies are a fad best avoided, despite Paypal accepting bitcoin.”
“Cryptocurrencies don’t belong in your portfolio,” Kamm wrote when BTC was trading for $12,931 per unit. “The reason is you can’t value them. An asset that doesn’t pay even a notional stream of cashflows— like bonds, which pay interest, or shares, which pay dividends, or property, which provides rental income— is just a gamble. By all means engage in it, like punting on a roulette wheel, for recreation, but be prepared to lose your entire stake,” Kamm added.
No fundamental Value – Nourel Roubini
The economist Nouriel Roubini, who said the rally is driven by “manipulation” and will go bust anytime soon.
“It doesn’t have any fundamental value,” he said of Bitcoin. “We’re close to the point where the hyperbolic bubble is going to go bust.”
He also tweeted that that he has no doubt the incoming Biden administration will create a bearish environment for crypto assets and that the pressure of future regulation will threaten the adoption and growth of Bitcoin.
And lastly, the Finder’s Bitcoin Price Predictions report.
On average the panel of 47 experts and fintech leaders expect BTC to increase but consolidate most of the time, around $51,951 per BTC. 46% say now is a good time to buy Bitcoin, 43% hold, and 11% sell.