According to Bloomberg analysts, the price of bitcoin could rise to $50,000 in 2021.
„Bitcoin will maintain its upward trend in 2021. In our view, macroeconomic, technical, demand and supply indicators support the $50,000 target, which implies a market capitalisation of around $1 trillion,“ Bloomberg analysts wrote in their monthly report.
Demand and supply is now on the bull’s side, with only 900 new Crypto Cash scam coins mined per day, up from 1,800 BTC in 2017, and institutional involvement increasing. Open interest in the CME bitcoin futures market has exceeded $1 billion for the first time in history.
Analysts note that the value of assets managed by the Grayscale Bitcoin Trust recently exceeded $10 billion. The Trust has bought almost 70% of new BTCs produced since May 11, when the reward for the block’s production in the Bitcoin Network was halved.
According to analysts, central banks are unlikely to reduce or stop their economic stimulus programmes in the near future, which suggests that the upward trend will continue next year.
According to Bloomberg, historical data also shows growth to $50,000: „Growth in 2017 followed a decline in supply in 2016 to 1,800 coins per day. History is repeating itself as the recent passage of the Bitcoin to a new all-time high of $19,920 took place around seven months after halving on 11 May. A similar price movement occurred after halving in July 2016.
Although the odds are in favour of the bulls, Bitcoin is still threatened with a rapid drop in the event of a panic sale in global equity markets. Even so, however, analysts do not predict a fall below $10,000. „The $10,000 mark, which has been a resistance to the price of Bitcoin since 2017, has become a critical support level,“ the report