Bitcoin Price Prediction 2021 and Beyond: Will Bitcoin End the Year in a New High

When the bear market came to a halt in the fourth quarter of 2020, the Bitcoin price soared to new heights, providing new profitable opportunities for buyers and sellers. Now sitting at more than a 200% gain, BTC is looking to break new records and set new standards for the financial market. Here is our Bitcoin price prediction 2021 and what you need to know about the upcoming months ahead.

Bitcoin Price Predictions vs What Happened

Price Prediction 1: Wallet Investor

Wallet Investor has had a history of good predictions, especially when the site estimated last August 2020 that Ethereum and Bitcoin prices will reach new highs at the beginning of 2021. 

It has a simple interface compared to other competing websites and has its own buy/sell algorithm as well. The website provides deep insights into each cryptocurrency and has its own suggestions on whether to invest in a coin or sell it in the short term.

Price Prediction 2: Investing Cube

Investing Cube is a crypto news site that makes a great reference sheet for both traders and investors looking to capitalize on the best currency of the month. It provides faster news compared to mainstream media including CNBC and Bloomberg, which makes it a good source of information regarding cryptocurrency before anything big happens. 

It also provides its own form of Bitcoin price predictions too. Investing Cube takes its sources from their own technical analyses which usually hit the marks. The website provides coin-specific news for your favorite investments and even includes some insights on various crypto exchanges such as Binance and Coinbase.

Price Prediction 3: Long Forecast

Long Forecast is a simplified crypto analysis website that includes a crypto-to-fiat converter as well as the estimated prices of each coin at the end of every month. 

If you need a general outlook of every cryptocurrency you invest in, then the Long Forecast provides it. It includes upcoming monthly price predictions as well as yearly overall prices. This gives you a bigger picture of what will happen in the future of cryptocurrency and the ongoing conflict between the bears and the bulls of the market. 

Price Predictions from The Top Coins

As Bitcoin continues to soar higher after the correction since May 2021, many buyers keep stepping in and pushing its price past $64,854. However, surpassing last year's all-time high may become difficult as September is historically not a good month for BTC prices besides 2015 and 2016. Yet, with a new cycle of the bears and the bulls, 2021 might just end the bane of September corrections. While the Bitcoin price prediction at the end of 2021 may still be a blur right now, we can at least check out upcoming events and possible scenarios that could make or break the overall value of BTC and altcoins. 

Bitcoin Price: What Was Unexpected

A lot of investors and traders became paper hands after the consecutive drops in Bitcoin price. This was due to China's ban on BTC mining last June, following Elon Musk's tweet about cryptocurrency energy consumption in the month before that.

BTC went back to previous highs after the B-Word conference in July 2021. This was a public online meeting between crypto powerhouses featuring Cathy Wood, Jack Dorsey and Elon Musk that brought major bulls into the market driving prices up again.

Ethereum currency, Cardano currency, Terra Luna crypto, Solana crypto, and Avalanche (AVAX) gained more than 50% since July 21 and continue to drive the prices higher, thanks to the developers’ consistent improvements on the technologies. 

Max Keiser, an American broadcaster for Russia Today and major Bitcoin investor made close predictions about the coin’s end-of-year price. However, a lot of people - especially in social media - felt skeptical about his prediction when he said that the price of Bitcoin will be at 28000 USD by 2020.

As it turned out, he was beyond right when the bull market entered in the final months of the previous year, ending 2020 with a $29,300 price for BTC. This time, he predicts that the BTC price will end at around $200,000. 

Bitcoin Price Predictions This Month

While it may be a far reach as of this writing ($BTC at $51,772), Max’s Bitcoin 2021 price prediction could become reality. Of course, nobody should rely on just one person's analysis - even if his predictions are 90% accurate. Everyone has their own possible outcomes for Bitcoin when 2021 ends, but let's look at the possible price of BTC by September 30th, 2021. Surpassing last year's all-time high may become difficult as September is historically not a good month for BTC prices besides 2015 and 2016. Yet, with a new cycle of the bears and the bulls, 2021 might just end the bane of September corrections. 

Despite September being considered the "catalyst" month of the year, this is not always indicative that it will be a bearish market. This can be seen as an opportunity to look at some great news in regard to cryptocurrency - specifically larger companies accepting crypto and high-profile individuals pushing for more adoption.

To further understand the stability of Bitcoin this month, we need to address both the black swans and the white swans of current events. 

The Unpredictable Black Swans

A black swan is a current event that may crash the Bitcoin price to more than 10%. We already saw it happen from uncontrollable events like the Mt. Gox scam of 2011 and the pandemic outbreak of 2020. 

Infrastructure Bill Aiming to Bring Stability

With the rise of cryptocurrency and its popularity, the governments from all over the world - especially the United States, Korea, Japan, and China - have been demanding for more regulation in order to bring stability. This is why a 1 trillion dollar bill has passed recently which requires tax money being spent on infrastructure development such as building roads, power grids etc. For this to work, crypto platforms like Binance, Coinbase and FTX (as well as obscure sites such as ByBit and YoBit) must abide by the government’s laws to include stricter KYC standards (Know Your Customer) to identify brokers. There will be an election within the US House of Representatives on September 27th 2021 to see if the Infrastructure Bill should become mandatory.

If it does become law, it will not be a surprise if the crypto market goes into a major correction again.

The SEC Who Lost a Battle

The US Security & Exchange Commission continues its fight against cryptocurrency. While they may have lost the recent courtroom fight against Ripple, that still does not stop them from trying to contain the ever-growing market. Since people are investing in cryptocurrency and expecting income from the companies that work on them, the SEC requires these companies to register with them - an action that the majority of the market has not done. 

The SEC's potential crackdown on cryptocurrencies could cause fear among individuals who are not looking to be monitored by the SEC.

The White Swans a Positive Impact on Bitcoin Price

A white swan event grants major gains to the crypto market thanks to news that further improves the quality of life for the developers that manage the coins and tokens such as larger market caps and social media engagement.

Major Companies Buying and Accepting Bitcoin as Payment

Businesses have a new thing to consider when it comes to payment methods. Mega corporations such as Amazon, Apple, Microsoft, Walmart and Facebook are beginning the domino effect by accepting Bitcoin as currency. Once this happens for these businesses their competitors will follow along with them which results in an explosion of value for Bitcoins.

The Return of Bitcoin in Tesla

Despite social media blaming Elon Musk’s tweet as the real reason for the big correction last April and May, the Tesla CEO said that his company will welcome BTC once again if the coin proves that it has an improved energy consumption. Musk also claimed that he never sold any of his Bitcoin and even holds Ethereum too. 

Once Tesla reconfirms the acceptance of Bitcoin, prices may drive higher than the previous all time high of $64,854.

Possible Bitcoin Prices

Depending on the current state of events, Bitcoin may or may not return to $64,000. 

However, the price will range from $42,500 to $66,000. A major price change may take place on September 20 onwards should the black swan or white swan events overtake the other for better or for worse. 

Our best advice is to watch out for the swans. 

Evergrande Collapse Impacts Bitcoin Price & Altcoins 

Speaking of which, a massive black swan appeared in everyone's sky: Evergrande Collapse. This is what happened the week of “Evergrande Collapse”: 

• Bitcoin went down 7% on Monday to approximately $44,000.
• Ethereum was down 8% at right above $3,100. 
• Polkadot down 13% to $29.47
• Cardano, Binance, XRP, Solana also got affected showing an overall decrease in price across every coin. 

The question then is if China’s Property Market Could Trigger a Crypto Crash? 

The main factor that could cause crypto to crash is if Bitcoin’s price goes below a certain value. Some argue that if Bitcoin Price goes below $30,000 USD it could create a ripple effect crumbling everyone’s belief in the coin and in the crypto market overall. 

Not to mention, the media’s love for drama will have a major role in how Evergrande’s collapse will affect our world. In the week of the collapse, Forbes’s headlines started with Crypto Markets Suddenly Lose $250 Billion In Value.

Altcoin Prices Summary 

If you are investing or trading other currencies, the first weeks of September are certainly bullish. Ethereum alone is continuing its streak after an 80.13% gain since July 19 and sitting at $3,900 as of this writing. Cardano broke its previous all-time high of $2.47 and hit $3.10 last September 2. Terra Luna earned a new local top of $36.89 as of August 29 and Solana at $150.60. The forked coins including Bitcoin Cash and Bitcoin Gold also found an upward momentum.

Bitcoin Price Predictions Last Year 2020 

The June 2020 edition of the Crypto Research Report (CRR) revealed price predictions for several cryptocurrencies and also has an absolute valuation for Bitcoin (BTC). The especially promising price predictions for Bitcoin outlined that the expected price of bitcoin in 2020 rose to $19,044.

It further increases to $341,000 in 2025, and $397,727 in 2030, given that the price predictions of various crypto experts and popularity of the currency continues. 

This report used the “equation of exchange” model inspired by Mill’s equation of exchange and later formulated by Irving Fisher. According to CRR, the model “gives a target price that crypto-assets should be priced at based on assumptions regarding changes in supply and demand.” 

In retrospect, 2020 also found its share of huge corrections - especially during the global outbreak of COVID-19 starting February 2020. The pandemic caused a massive blow to the market, plummeting it down to more than 30%. However, the following months made up for the losses and ultimately gained tenfold. The second half of the year was also a blissful year for altcoins, especially Ethereum, Ripple, Litecoin and Chainlink - all of which gained more than 100% by the end of the year. 

Accurate Predictions or Pure Speculation?

So, how accurate do these figures seem now that we’re in September, and the year is about to end soon? After the bearish market of last year following the COVID outbreak, Bitcoin prices kept going higher. Unlike traditional financial institution stocks and valuation, Bitcoin and many other cryptos were doing surprisingly well for the dark economic atmosphere brought about by the Coronavirus. 

Since then, Bitcoin prices have risen quite a bit from the end of September last year. It had its sharpest increase between October 2020 to March 2021 until the streak ended from April to mid-July 2021. It has increased 197.19% since October 2020. If this trend continues, it looks like Bitcoin will be ending October 2021 with a new high and a constantly increasing rate. 

However, if the popularity rally of Bitcoin continues, governments (especially in the US and China) will try everything in their power to regulate cryptocurrency. After all, its decentralized atmosphere makes its buyers and sellers anonymous from the prying eyes of the states. If it does so happen that congresses will push through with regulations over Bitcoin and the rest of the cryptocurrency market, there will definitely be a huge FUD which will result in a painful crash. Founder of the world’s largest hedge fund, Ray Dalio, said, “I think at the end of the day if it’s successful, they will kill it and they will try to kill it. And I think they will kill it because they have ways of killing it.”

Not to mention, the recent Evergrande collapse contributed to the end of Bitcoin’s bull run from July to early September. This crisis does not just affect the crypto market but also the others including penny stocks and the stock market. “While government intervention is still not out of the question for China Evergrande, steel demand from China’s property sector is likely going to worsen before it stabilises,” iron ore analyst Vivek Dhar of Commonwealth Bank said. “A default by China Evergrande would be the worst possible case for steel demand.”

Yet, there are still a lot of hopefuls out there confidently knowing that Bitcoin will break the local top of $64,000 by the end of the year. As Morpher CEO Martin Frohler said, “The ultimate store of value, in the long run, will be Bitcoin. It will eventually replace gold and bonds.” If more people see Bitcoin this way, then cryptocurrency may just become the new social norm in the future.

While many people are HODLing for the best gains, others would prefer to use the volatile opportunity for day trading - especially right now that the market is in a fight between the bears and the bulls. “The part I love the most about trading is it's not static,” professional trader Michael Boutros said. “Every day is a new setup, every day is a new opportunity.”

Overall, the BTC price prediction 2021 is still anyone’s game. It could end at more than $100,000 or even as low as $20,000, depending on the black and white swans for the remainder of the year.

Not to mention, the recent Evergrande collapse contributed to the end of Bitcoin’s bull run from July to early September. This crisis does not just affect the crypto market but also the others including penny stocks and the stock market. “While government intervention is still not out of the question for China Evergrande, steel demand from China’s property sector is likely going to worsen before it stabilises,” iron ore analyst Vivek Dhar of Commonwealth Bank said. “A default by China Evergrande would be the worst possible case for steel demand.”

Yet, there are still a lot of hopefuls out there confidently knowing that Bitcoin will break the local top of $64,000 by the end of the year. As Morpher CEO Martin Frohler said, “The ultimate store of value, in the long run, will be Bitcoin. It will eventually replace gold and bonds.” If more people see Bitcoin this way, then cryptocurrency may just become the new social norm in the future.

While many people are HODLing for the best gains, others would prefer to use the volatile opportunity for day trading - especially right now that the market is in a fight between the bears and the bulls. “The part I love the most about trading is it's not static,” professional trader Michael Boutros said. “Every day is a new setup, every day is a new opportunity.”

Overall, the BTC price prediction 2021 is still anyone’s game. It could end at more than $100,000 or even as low as $30,000, depending on the black and white swans.

Bitcoin Price and the Influence of Large Companies

The surge may be explained by multiple crucial news such as PayPal including BTC within its platform and Tesla initially accepting BTC. In addition, Square also added $50 Million of Bitcoin to its balance sheet this week. These inclusions into traditionally and globally used financial services highlight how far the asset has come since its inception. J.P. Morgan, a financial giant formerly critical of Bitcoin, has also hyped up the emergence of BTC as an alternative to gold amongst millennials. 

The analyst team suggested that a “doubling or tripling” in the price of this cryptocurrency if current trends continue, is not far off.  

The Bull Market Rally

Bitcoin is, undoubtedly, the most globally well-known crypto and is in the bull market territory, having rallied by more than 300% since March 2020.

So, does the trend in the past year signal that Bitcoin will be ending the year at a new high? Things may have slowed down during the mid-year of 2021 but here we are on a new bullish phase of the market. Of course, both black swans and white swans may rally Bitcoin to the predicted prices or could plummet once again (but on a shorter term this time around). We also need to take into account the expected dips that Bitcoin will take, given how volatile cryptocurrencies are. 

Bitcoin ranged between $30,000 to $50,500 from July to August, subsequently reaching $51,943 in the first week of September. This was the highest monthly close since the first quarter of 2021. If we see this increase of more than 20% for the next three months, we might be able to get to the predicted price. This is an idealistic call though, so we predict Bitcoin might not just yet hit CRR’s predicted $100,000 to $200,000. 

BTC Liquidity Pushes Bitcoin’s Price Up 

However, the present liquidity crisis is helping to push Bitcoin’s price up further. While the cryptocurrency was not able to maintain its local high of $64,000 since April 14, there are countless reasons why traders and investors are being so optimistic, even amidst the recent variants of the virus as well as states getting stricter over the crypto market. 

This represented a rise of beyond 200% in less than a year, which coincided with several significant events around the world along with the uncertainties related to them. When compared to the S&P 500 and Gold, Bitcoin has performed the best compared to any assets over the past year.

Some analysts have pointed out that, with this rise, Bitcoin was able to break its correlation with the S&P500, which has persisted since March 2020. While the S&P500 has been on a downward trend since mid-October, Bitcoin saw massive gains. Meanwhile, even Gold weakened over the past couple of weeks. This represents a decoupling between Bitcoin and stocks.

Analysts note that new investors have to lead to an influx in purchases, providing support for Bitcoin’s rising price. At the same time, this has prevented speculators from trading Bitcoin in correlation with dropping stock prices. These same analysts say that two primary forces are driving Bitcoin’s pricing, that is speculative trading and HODLers’ organic valuations. The latter is uncorrelated, rising, and is expected to continue displacing speculative trading.

The Decoupling Between Markets

Macro-analyst Willy Woo wrote: “Bitcoin will decouple from traditional markets soon, but driven by its internal adoption s-curve (think startup-style growth) rather than changes in perceptions as a hedging instrument by traditional investors. Fundamentals of user adoption have already broken all-time highs. Note that stocks may continue to rise, if that’s the case the notion of de-coupling is not so important. What this test shows is that if stocks crash, Bitcoin powered by its large adoption s-curve, swallowing ever more capital, will present perfectly good safe haven properties.” (via Twitter)

Along these same lines, Crypto Daily noted yet another critical factor regarding Bitcoin’s rally: This is a cryptocurrency that’s in a liquidity crisis. While the typical trend shows Bitcoin deposits increase through exchanges as prices rise, we’re currently seeing the opposite happening, meaning that whales are ‘holding their Bitcoin. 

In other words, despite the price of Bitcoin rising substantially last month, a declining amount of BTCs are hitting the exchanges. This has to lead to a liquidity crisis on exchanges as they are lacking the necessary Bitcoin to serve their users. Due to this difference in demand and supply, with the former being high and the latter being strained, there hasn’t been an inconsiderable amount of buying pressure on Bitcoin’s price. 

Bitcoin Demand in 2021

Looking back at historical data, Google trends have long been a marker of interest in cryptocurrency and other investment vehicles. Overall search volume makes up just 61% of the annual high back in May, with the demand for Bitcoin looking like it’s coming more from institutional investors interested in getting on the Bitcoin bandwagon as opposed to the retailers who propped up bull runs of the past.

Ultimately, Bitcoin has managed to attract a substantial amount of investors over the past few years, and recent months saw the investments of some major institutional investors who have traditionally not backed Bitcoin and other cryptocurrencies. Beyond J.P. Morgan and PayPal, whose buy-in we discussed previously, Bitcoin has also welcomed large investors like MicroStrategy and Square. 

With this in mind, more recent analyses that have looked ahead to 2021 remain optimistic, with sources like InvestorPlace citing that the economy will be its primary driver as we enter the new year. They predict that a fast-improving economy will increase cryptocurrency demand across the board as risk-taking goes up, as is traditional in such a market, and technical factors remain positive. With that, they’re predicting a much more conservative price of $60,000 to $80,000 if all goes well.

Possible Decline in 2022

Meanwhile, if we see a slowing economy into the new year, the opposite is expected with a reduced demand for cryptocurrency as investors take a flight to safety. In that instance, it’s predicted that Bitcoin will fall to RSI resistance levels, with its price sitting between $45,000 and $55,000. 

To help determine which of these paths Bitcoin may take, the team behind Goldman Sachs’ Global Research released a research note in August that helps reinforce the optimism. In their note, the research team held an upbeat tone for the 2021 economy, with Joseph Briggs stating: 

“We now expect that at least one vaccine will be approved by the end of 2020 and will be widely distributed by the end of 2021Q2 … We have incorporated this timeline as our baseline forecast, and now assume consumer services spending accelerates in the first half of 2021 as consumers resume activities that would previously have exposed them to Covid-19 risk.”

Meanwhile, other analysts remain focused on how Bitcoin is expected to end in 2021. The Coin Telegraph, for instance, re-emphasizes the over 30% price increase we’ve seen since late June, acknowledging the current strong rally along with the macro factors that hint at a positive outlook in the medium to long-term, agreeing with the economy being the driving factor as we move into 2021.

More Consolidations in the Future

However, they also suggest that, in the short term, momentum is likely to fade as consolidation occurs. CEO of Ark Invest, Cathy Wood, discussed this in the Know podcast, mentioning that there is very little technical resistance between the current high rate and Bitcoin’s all-time high of $20,000. With that, she posited that Bitcoin may be able to expect a new trading range hovering between $10,000 and $13,000, helping to establish a healthy consolidation phase to end the year.

“That $13,000 [level] is important because if we were to get through that, then in technical terms, there would be very little resistance and we would probably be on our way back to the peaks we saw in late 2017 — so, around $20,000. Now, we’re not sure if that is going to happen. We could stay in a new trading range, just at a little bit of a higher level than the recent six to 10. Maybe we’re in the $10,000 to $13,000 range. Nonetheless, a breakout,” Wood states.

Of course, whether or not BTC will remain in this range over the months to come is uncertain. Again, looking historically, this is a cryptocurrency that has typically consolidated between September and October, with a rally coming mid-November. Given the activation of the block reward halving back in mid-May, the chance of an upward trend sticking throughout November and December is still high. 

However, taking this information and looking ahead to 2021 and beyond again, there’s been a continuous narrative revolving around BTC’s long-term value and the continuing decline of the U.S. dollar. With the U.S. economy still struggling to open again, the face value of the dollar has fallen next to other reserve currencies.

BTC vs USD

Back in July 2020, Mitsubishi UFJ Financial Group analyst, Lee Hardman, noted a “relentless” sell-off of the dollar. However, multi-asset strategist for Pictet Assessment Management, Supriya Menon, dismissed this, reminding that many macro factors (like the rise in COVID-19 cases) along with election questions have weakened the dollar. 

Bringing that into the perspective of a Bitcoin investor, chief strategy officer at CoinShares, Meltem Demirrors, said he believes that the economic uncertainty and weakness of the dollar should benefit Bitcoin, just as it does gold, adding: “If bitcoin’s financialization continues, it will be unable to remain insulated from the financial system.”

Whether or not the dollar’s decline has already shown its complete impact on Bitcoin is unclear, but the U.S. dollar has hit a two-year low. Analysts say a near-term recovery is anticipated for the dollar, but Bitcoin investors should note that two variables could make it drop further, those being the EU’s stimulus package and low-interest rates all-around. In recent weeks, the Euro has been out-performing the dollar and Europe, overall, is seeing aggressive fiscal policies, further impacting the U.S. economy’s recovery path. 

This could mean that investors are beginning to treat Bitcoin much like gold, and while that might not benefit BTC in the near future, the continued trend of treating BTC as a store of value and safe-haven rather than a risk-on asset is supported by the fact that more large-scale investors have been accumulating Bitcoin with a longer-term hold in mind. 

Will Bitcoin go up or down?

BTC has always been synonymous with cryptocurrencies and its recent bullish run shows the reasoning for this. At the time of this reporting, the value of a BTC asset is around $45,706.56 and the market capitalization for the asset is $859.82M. Our team is looking at some of the best BTC price predictions to discover what could be done to the asset from 2021 to 2025. 

All in all, Bitcoin’s outlook is optimistic, but whether or not we’ll reach the astounding predictions stated during the last few months of this year, though, is something that remains to be seen. In the meantime, we’ll continue keeping a close watch on Bitcoin’s continued adoption across markets, the moves major investors make, and the continuing trends in holding and valuations compared to the S&P500’s performance.