Although 2020 was dominated by headlines of COVID-19, lockdowns, and economic uncertainty, it was one of the biggest years in Bitcoin’s brief history.
The cryptocurrency’s price rose exponentially during the year, reclaiming its stratospheric highs of 2017 after finding support from some of the world’s most prominent investors and Wall Street.
With its prices currently soaring above $30,000 per BTC, crypto investors and traders seek clues that reveal what 2021 holds for bitcoin. With the prospect of broader mainstream adoption and renewed institutional interests seemingly on the cards, 2021 looks set to be a good year for the popular cryptocurrency. To know more you can visit bitcoin code review.
Here are our top Bitcoin predictions for 2021.
Top Crypto Predictions for 2021 Every Trader Should Know
History Could Repeat Itself
Bitcoin is no stranger to sharp pullbacks and market crashes. It happened in 2011, twice in 2013, and in 2017. So, is it inevitable that history will repeat itself? Right now, there’s a lot of conflicting opinions regarding whether a market crash will happen again in 2021. In a survey conducted recently by Finder.com, 52% of the respondents warned that BTC would lose more than 50% of its value in a short period.
But We Could Be In For a Longer Bull Run
Despite what history shows, many are optimistic that, this time, Bitcoin could embark on a lengthy bull run. In the Finder.com survey we mentioned in the above paragraph, 58% of the respondents think that Bitcoin’s surge will last until the second half of 2021 at the very least—while 10% believe that investors will book gains for the next four years.
Bitcoin Will Continue To Threaten Gold
One of the most hotly-contested topics in 2020 was whether BTC could continue to snare away market share from gold. Many analysts and experts believe that precious metal is losing its grasp on the title of being the premier store of value because an increasing number of millennials are now considering cryptocurrencies as a safer asset.
While this may not happen in 2021, there are numerous signs that cryptocurrencies will achieve this milestone one day.
Big Banks: It’s Just Starting
After years and years of doubts and skepticism, the big guns of Wall Street are finally beginning to embrace BTC—and in quite a dramatic fashion as well.
In November of last year, technical analysis from Citibank was leaked, which suggested that BTC prices would skyrocket in 2021, potentially reaching a staggering $318,316 by the end of the year. To put that in perspective, that’s just 90% of current levels.
Regulation On the Horizon
Stepping away from values and prices for a bit, it’s worth noting that governments and central banks will have keen eyes on the surging market cap of Bitcoin. Moreover, at the rate it’s rising right now, the U.S government could be tempted to introduce new regulations if it grows any bigger.
And we haven’t even mentioned altcoins in our predictions and how it could be an even better place for growth than Bitcoin or central banks introducing their proprietary cryptocurrency as competition within the space grows.
Crypto Will Get Taxed
If you own BTC, now may be a good time to sort out your tax affairs—mainly if you live in the U.K or the U.S. The IRS and Her Majesty’s Revenue and Customs—have started stepping it up against those who don’t declare their crypto assets. If you sell BTC for a higher price than you purchased it for, it’s a taxable event, which means you’ll have to pay capital gains.