Before deciding to invest in cryptocurrency, it is necessary to analyze the prospects for the movement of bitcoin. The recommendation, in particular, applies to bitcoin, despite the fact that for many years it remains the leader in capitalization. Experts help you figure out whether to invest in a coin.
BTC traffic forecast for 2020-2021
EXANTE analyst Viktor Argonov shared his opinion on the prospects for the further movement of bitcoin in 2020 and 2021.
The expert noted that for two months now, the price of BTC has been mainly moving in the range of $ 9-10 thousand. At the same time, the growth in the value of cryptocurrency since the beginning of the year amounted to almost 30%. The analyst drew attention to the fact that the coin went up even before the May halving, which means that the expected effect of reducing the rate of BTC emission was taken into account in advance in price.
“However, the current lull may end at any time amid the arrival of institutional players, as well as general instability in the financial markets. In particular, from September 2019, American institutionalists got the opportunity to legally purchase BTC through supply futures, and from May 2020 also Ethereum (ETH), ”said Victor Argonov.
The analyst drew attention to the fact that more than a third of the largest clients of the famous investment company Fidelity Investments have cryptocurrencies in their portfolio. Institutional interest in itself, in his opinion, does not guarantee a positive movement of quotes, because even long-term investors are interested in growth only after acquiring a cryptocurrency, and before that, they need low prices.
Recall that in early June, analysts at the investment holding company Fidelity Investments announced that more than a third of institutional investors already own a cryptocurrency.
“Nevertheless, in the medium term, the situation has the potential for market growth. After the halving, there were no truly deep drawdowns of the leading cryptocurrency courses. BTC production fell by half, and this factor limits the supply on the market. At the same time, the number of market participants is growing exponentially, ”the expert explained his point of view.
In the second half of the 2010s, the analyst noted, the number of participants in the digital asset market doubled annually, which on average led to a proportional increase in coin rates. Such factors, in his opinion, contribute to the appreciation of not only BTC but also a number of other currencies, which largely repeat the dynamics of bitcoin.
“It is also worth remembering that soon after the BTC halvings of 2012 and 2016, the largest crypto market bubbles were inflated (in 2013 and 2017). There is no guarantee that the story will happen again, but some investors allow this scenario, and their moods themselves additionally work in favor of growth, ”said Victor Argonov.
The bubbles Viktor Argonov talks about are on the Bitcoin chart. Source: TradingView
The expert believes that the prospects for BTC in the current situation are more obvious in comparison with most other currencies. The unreadiness of most miners to sell coins at prices of $ 7 thousand and below, as well as the fact of a two-fold reduction in emissions, in his opinion, make deep collapses unlikely. A multiple increases in the value of the cryptocurrency at the same time, according to the analyst, is quite real.
“Even if we exclude the scenarios of 2013 and 2017, the rise in price of BTC may occur due to the growth of users. Cautious extrapolations of the trends of previous years allow us to expect BTC prices to be about $ 14 thousand by the end of 2020, and $ 25 thousand by the end of 2021. – $ 30 thousand. It is worth noting that with the total number of users, the number of “hodlers” is also growing, who are not ready to sell BTC even in catastrophic landslides, ”Viktor Argonov summed up.
What do other participants in the crypto community think
Every day, new predictions for bitcoin appear on the network. Some see the prospects for cryptocurrency to grow actively in the near future, while others expect a drop in the value of BTC to zero. Among the positive forecasts, the following can be distinguished:
- The head of the Galaxy Digital cryptocurrency bank, Mike Novogratz, believes that bitcoin can go up in growth within 6-24 months. In his opinion, BTC will receive an impetus for a positive movement due to the interest of institutional in the digital asset market. The expert shared this point of view during the next interview for CoinDesk.
- Board Member Bitcoin Foundation Bobby Lee believes that by the end of 2020, the coin will be able to reach $ 25 thousand. The expert shared this point of view in an interview with Cointelegraph. Earlier, the analyst also predicted the growth of BTC to $ 500 thousand by 2028.
- The well-known analyst and TV presenter Max Kaiser, while participating in the Infowars show, spoke about the prospect of Bitcoin growing to the level of $ 400 thousand. He did not specify a time frame.
- Tim Draper, venture investor and CEO of Draper Associates, believes that BTC could reach $ 250,000 per coin in 2022. At the same time, the expert is confident that cryptocurrency is able to secure 5% of the global economy.
- Morgan Creek Digital co-founder Anthony Pompliano sees Bitcoin’s growth potential of up to $ 100 thousand by December 2021. The analyst shared his point of view during the next interview.
- Crypto Research experts, in turn, analyzed Prospects for the movement of cryptocurrency over the next ten years. According to them, over this period, bitcoin will rise in price to $ 400 thousand.
Not everyone agrees with positive forecasts for the further movement of the Bitcoin exchange rate. For example, CEO of Euro Pacific Capital, a well-known cryptocurrency critic Peter Schiff, does not see prospects for the coin.
Nuriel Roubini, a well-known economist who predicted the financial crisis of 2008, also repeatedly expressed his negative attitude to BTC. The expert considers cryptocurrency a scam, with zero security.
To summarize
There is no universal point of view, thanks to which the participants of the crypto community could make an accurate forecast of the movement of the BTC rate. To other conclusions:
- Many respected experts see the potential for rising Bitcoin prices. At the same time, the prospect of a fall in the value of the coin also has authoritative adherents.
- Expert forecasts vary widely. The most optimistic point of view ($ 250 thousand per coin in 2022) was expressed by Tim Draper.
- Most participants in the crypto community are waiting for an increase in the value of bitcoin. At the same time, some users also expect a drop in the price of BTC, during which investors will have the opportunity to profitably buy a coin.
The forecasts presented are not investment advice. The choice of cryptocurrency for investing must be done independently, after your own analysis.
