Will Bitcoin be worth $100 000 by the end of 2021?


In May 2021, we wrote an article on the cycles of the crypto market, in which we analyzed various periods in the digital asset market when the value of the main coin changed. Based on this article, we can say that the growth of BTC will continue and there are no factors suggesting otherwise. In this article, we will analyze whether the bitcoin price will reach the $100 000 mark by the end of 2021.

Historical maximum BTC in April 2021

The price of bitcoin in March 2020 fell to $5000, but a year later, the main coin was able to catch up and renewed its all-time high, rising to $65 000. $7500. It is worth noting that it was the main coin of the crypto market that showed such profit, and not some new token, which is subject to the pump and dump scheme.

As soon as Bitcoin reached its all-time high, the crypto market went into a correction. At this time, China began to impose bans on cryptocurrency, as well as on its mining, since until May 2021 more than 50% of all bitcoins were mined in China. The market reacted to this statement with a fall and the cost of bitcoin dropped to $28 800.

Even in spite of such negative events, a positive attitude remains on the cryptocurrency market. Why are market participants confident in the growth of bitcoin and will it be able to reach the $100 000 mark by the end of 2021? Let’s analyze it below.

Cryptocurrency is no longer a dubious asset

Over the past year and a half, there have been major changes in the cryptocurrency market. First, institutional investors finally entered the market and started investing big money in digital assets, which triggered the growth of the crypto market.

Secondly, many well-known traditional companies like Microstrategy and Tesla are now investing in cryptocurrency. For example, Microstrategy bought bitcoin with most of its funds, leaving only 20% of fiat in the account. Tesla has also invested $ 1.5 billion in Bitcoin.

The third event was that El Salvador recognized bitcoin as an official means of payment. This is certainly not the most ideal country with a rather mediocre political system. However, this event may prompt other countries to legalize cryptocurrencies, thereby increasing their popularity in use and the capitalization of the crypto market.

What affects the crypto market?

Bitcoin appeared 12 years ago and after 3 years the first cryptocurrency exchange Mt.Gox began its work, altcoins appeared. Today, the crypto industry is just over 10 years old, which is a relatively short period for a whole direction that plans to change the global financial system.

Today, there is no standardized method for valuing digital assets. However, there are general concepts that should be followed when choosing a crypto asset when investing. This can include emissions, by whom the product was developed, whether it is a worker, and so on. For three years, the IMF has been creating a plan to regulate cryptocurrencies, but so far there has been no progress.

BTC price behavior is also strongly influenced by the mood of market participants. Now a large number of crypto enthusiasts around the world support the introduction of cryptocurrencies, which is reflected in the capitalization of the digital asset market.

Why is the price of bitcoin changing?

As mentioned above, the BTC price is influenced by the demand from market participants, as well as its available supply, as with any market asset. At the beginning, a deflationary model – halving – was laid in bitcoin. This is a process in which the reward for mining a block is halved. The last halving was in May 2020, and after six months bitcoin began to update its highs.

It is worth noting that some of the bitcoins were forever lost and there is no access to them. That is, out of the 18.8 million BTC that were mined, about 2-3 million will never participate in the trading process, since their holders have forgotten or lost the keys to their wallets. If we add to this the strong interest from investors over the past year and a half, we can say that demand is growing, and new bitcoins are emerging at a slower pace.

When the price of bitcoin and the crypto market rises, the media start talking about it, thereby making free and at the same time effective advertising for crypto assets. Not only investors, but also large companies pay attention to this. An example is the end of 2020, when PayPal made it possible to pay in bitcoin, which was the impetus for companies that now have bitcoin in their public portfolios.

Of course, the crypto industry does not stand still and more and more promising new projects appear. The new altcoins, in terms of their technological component, surpass the main coin. Although Bitcoin continues to occupy a leading position, new coins also have their own audience in the market. That being said, bitcoin is still a competitive asset, which is why it is called digital gold.

Will Bitcoin reach $100 000 by the end of 2021?

There is no exact answer to this question, but some assumptions can be made. Today the crypto market is in the middle of another cycle. If we consider the last cycle, which took place from 2016 to 2019, Bitcoin exceeded the previous historical maximum by 20 times. At that time, Bitcoin was worth $1000 and at the end of 2017 the price reached $20 000.

The point is that all cycles of the crypto market were repeated three times and there is a possibility that everything will repeat itself in the current cycle. Today we have a historical maximum of the main cryptocurrency of $67 000, which is almost 4 times higher than the historical maximum in the previous cycle.

Conclusion

Based on the above factors, Bitcoin could hit the $100 000 mark by the end of 2021. The main coin goes on a par with other cryptocurrencies and is of interest to many investors. But when we talk about cryptocurrency, then we are talking about trading platforms. In order not to miss out on the opportunity to earn money, use the services of RevenueBot. The service provides the opportunity to create trading bots on the largest cryptocurrency exchanges: Binance, Bittrex, Bitfinex, Exmo and others. Creating a bot is free of charge, the service will not take commissions until the client begins to make a profit from trading the bot. With the help of deep settings of the bot, the service’s clients implement trading strategies that are problematic to experience in normal trading. We will immediately indicate: the bot does not have access to customer funds on the exchange, but trades using API keys, that is, the account will remain out of access. RevenueBot has over 28 thousand customers who earn money thanks to trading bots.

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