372
views

5 Reasons Why BTC Price Can Still Reach $100k in 2021

Bitcoin price is currently well over $50k with an outstanding 66% market dominance making it the highest valued cryptocurrency. The crypto developed in 2009 has seen its high prices realized through the end of 2020 and the first quarter of 2021.  The records show an all-time high price of $61.55k, and future predictions lean on the increase in its price up to $100k. Certainly, the BTC rally doesn’t seem to have run out regardless of the 600% price surge since its launch. 

Despite recent events of the global pandemic, countrywide lockdowns, market fluctuations, and various economic restrictions, Bitcoin as an asset has been on the rise. There are various reasons why the asset is to reach $100k value based on various reports and analysts’ predictions

The Rise of Bitcoin

Bitcoin was the first-ever decentralized digital currency introduced in 2009, with its primary purpose serving as an alternative for current loopholes in the financial system. Its initial price was $0, and the first rise recorded in July 2010 was at $0.08. By 2013, Bitcoin transactions recorded were over 10,000, according to BitPay, and in late November 2017, the price surged to $10k. In 2018, BTC experienced the most critical crash, recorded a $3.2k value, and later rose to $10k in December 2019. 

Since then, the price has increased with major turning points recorded from last year October. In January 2021, the price rose to $40k, and in mid-February, it surged to $50k. The recent upsurge as of March 13th show its increased price to $60k and hours later recorded its highest price at $61.5k

Reasons Accelerating the BTC Price

Since the beginning of 2020, BTC price surged from $5k to over $20k, and all fostered from two major events: 

  • COVID-19 pandemic: With Bitcoin assets regarded as a store of value, major institutions have sorted to restore their cash reserves into a digital asset. Such institutions include Square Corp, Microstrategy, and Tesla. The primary reason for this is that its attribute of being a store of value protects the asset from inflation. As the pandemic crippled various economic sectors, the assets’ value increased since it’s preferred to fiat currencies. 
  • The Third BTC Halving: Bitcoins halving event happens once every four years, and in May 2020, the third halving took place. It cut the mining price from 12.5 BTC to 6.25 BTC. As a result of this halving, the demand for Bitcoin increased due to limited coins in circulation. Also, this event supported the future prediction of BTC reaching $100k value. 

As you have seen over the years, Bitcoin’s value has had significant upsurges and declines. However, its price will still increase in the future, reaching new heights of up to $100k. Various reasons support this prediction, and they include: 

Comparison with Gold

Bitcoin has many properties similar to gold. Consider gold, it is a global store of wealth, and in this case, BTC is considered “digital gold.” Regardless of Bill Gates warning investors against risking crypto investments, investors indulge in considering BTC for carrying out transactions and payment systems. Janet Yellen, the United States Treasury Secretary, mentioned the digital asset as highly speculative, although crypto enthusiasts consider investing in the cryptocurrency. 

Better Trust

From its launch over a decade ago, Bitcoin has raised many questions surrounding its security and other attributes. Most people were concerned about the common malware experienced in digital platforms and servers that included hacking of the asset. Others were concerned about the success of using decentralization, while others wondered if the halving events would destroy the system. It’s safe to say that Bitcoin has proven to work successfully and is impervious to hacking. After 12 years, Bitcoin has successfully proven that it is secure and built on reliable and unbreakable blockchain technology

The Global Pandemic

Recent events suffered globally due to the coronavirus have exposed the vulnerabilities of the current market system. The downturn in the global economy has been a challenge since the outbreak. BTC proves to be a successful model of both payment and storage of value that reduces hand-to-hand transactions limiting the spread of the virus. Bitcoin’s popularity has increased due to this, and its resistance to inflation makes it a valuable asset in the market system. 

Associations with Financial Institutions

Various financial institutions have taken up the use of Bitcoin in facilitating sales and purchases, especially on their online platforms. Institutions such as PayPal, JP Morgan, and even Visa have adopted digital assets by providing crypto services. As a result, its popularity has increased, indulging investors in purchasing Bitcoin, and increasing its value. 

Bitcoin’s Liquidity Ratio

Investors prefer assets with a high liquidity ratio since these assets are easily sold and purchased in the market system. As such, Bitcoin holds the highest liquidity ratio among all cryptocurrencies, presenting a reason for its expected upsurge since it is easier to exchange the asset at market price. 

Summing Up

Recent surges in the Bitcoin price can be narrowed down to two major reasons: better trust and global trends. These factors support the expected upsurge of the digital asset to an all-time high of $100k in the coming years. 

After the steady rally set off in October last year, Bitcoin has soared to new heights where it crossed $20k in December 2020, crossed $40k in January 2021, and hit $60k by March. Bitcoin shows no sign of slowing down. From the analysis of past data on the crypto asset, predictions might be tricky, although you can get an idea of the expected trend, which increases towards $100k. Blockchain experts predict BTC becoming a mainstream asset class, and if trends continue, it will surpass the expected target. 

Bitcoin live price
Btc
Bitcoin
$23.512
price
1.28654%
price change
BUY NOW

Anthony Pompliano, partner and co-founder at Morgan Creek Digital, supports the analysis and quotes and aggressive price target of $100k in the next year. In his word, “I believe that Bitcoin will reach a $100,000 price point before December 31, 2021. My current confidence level of this happening is around 70-75%.” If his predictions are accurate, BTC’s market capitalization will reach $2 Trillion.

Stay up to date with our latest articles

More posts

Real Yield: The Top DeFi Tokens for Generating Actual Revenue

This year’s brutal bear market has claimed a sizable batch of crypto startups and nascent coins. To weather the volatility, the long-term believers in decentralized finance (DeFi) are in search of one thing: “Real Yield.” The term has grown in popularity among those looking for hidden gems in the market for decentralized finance applications. More importantly, it marks an appetite for responsible crypto investment opportunities that can outlast a turbulent market cycle.  So what exactly is “real yield” in the…

Get Top Notch Smart Contract Audit and KYC Services for your Crypto Project with Solidproof

Solidproof is one of the top auditors in the crypto industry with an increasing offer of smart contract auditing, KYC, and marketing services. The German company has developed quickly since its inception in 2021, building a vast portfolio of prestigious and successful clients. The DeFi space is a nourishing environment for crypto and decentralized finance projects. However, it is also a breeding ground for scammers, multi-million hacks, fraud, and money laundering. Protocols running on faulty codes risk exposure to cybercriminal…

What Is an Iceberg Order in Crypto?

Iceberg orders allow traders to buy or sell a large quantity of cryptocurrency without tipping off the market. By splitting their orders into smaller chunks, traders can execute their trades without causing undue price movement.  This guide will explain what iceberg orders are and how to use them in your trading strategy. What Is an Iceberg Order in Crypto Trading? An iceberg order lets traders buy or sell a large number of assets without revealing their intentions to the market.…

Ultimate Beginner Guide to Bitcoin Improvement Proposals (BIPs)

Bitcoin Improvement Proposals (BIPs) are essential tools in the crypto community. They allow the Bitcoin community to propose and vote on changes to the Bitcoin Core software.  BIPs can also work for other wallets/services and have a process for development and implementation. This guide will explore what BIPs are, how they work, and some of their benefits and risks. What are Bitcoin Improvement Proposals (BIPs)? Bitcoin Improvement Proposals (BIPs) are proposals for changes to the Bitcoin protocol. Anyone can submit…

A Beginner’s Guide to Identifying and Avoiding a Crypto Bull Trap

Cryptocurrencies are a relatively new and exciting investment opportunity but are also highly volatile. Prices can swing rapidly, and it is easy to get caught up in the excitement of trading. However, the hype may arise without understanding the risks involved. This guide provides basic information on identifying and avoiding a crypto bull trap to safely invest in this exciting market. How to Identify a Crypto Bull Trap Crypto investors are always on the lookout for signs of a bull…

Why Do Some Crypto Projects Issue More than One Token?

In recent years, the popularity of cryptocurrency has exploded. As a result, more and more people are looking to invest in crypto projects. However, not all projects are equal, and it can be challenging to determine which ones are worth investing in. This guide aims to help investors make informed decisions about which crypto projects to invest in. It will explain multi-token models and why they have become so popular among crypto projects.  The guide will also outline the benefits…

Are Hardware Wallets Safer than Online Ones?

An online wallet is a software program that stores cryptographic keys. This technology allows users to make digital payments and secure their online presence. Over the last years, many users have started to trust hardware solutions to store their coins. In this guide, we will explore the pros and cons of using these two wallets. In particular, we will focus on a matter that is vital for crypto enthusiasts: the security of their funds. What Is an Online Crypto Wallet?…

Tips for Trading in a Volatile Crypto Market

Cryptocurrencies are a new and exciting investment opportunity but can also be highly volatile. This guide aims to teach you how to trade in a volatile crypto market to increase your success probability.  We will cover everything from identifying a volatile crypto market to managing risk when trading volatility. So whether you are a seasoned trader or just starting, this guide has something for you. Why Is the Crypto Market so Volatile? The crypto market is volatile because it is…

How to Spot a Crypto Project with Great Tokenomics?

In the cryptocurrency world, there are a lot of projects with amazing tokenomics. However, it can be challenging to determine which projects are worth investing in.  This guide will help you spot a project with great tokenomics. In this way, you can make a great decision about where to invest your money.  Before analyzing the technical components of tokenomics, there are other red flags you should be able to spot. Our guide will begin with this premise and then move…

A Guide to the Signs that a Crypto Project is About to Fail

Cryptocurrencies are digital assets and a payment system invented by Satoshi Nakamoto. They use cryptography to secure their transactions and control new units' creation. Cryptocurrencies are decentralized, not subject to government or financial institution control. Bitcoin, the first cryptocurrency, appeared in 2009. With the rise in popularity of cryptocurrencies, there has also been an increase in crypto projects that end up failing.  This guide will explore the signs that a crypto project will fail. By understanding these signs, you can…