The Top Three Bitcoin Predictions for 2021

Happy New Year CoinStats followers, especially as Bitcoin explodes past $34,000, then corrects back below $30,000, and then moves back above $30,000. The price volatility—indeed—continues to remain a risk for the faint-hearted.

But what eases even the most quaking Bitcoin traders is its market’s glowing long-term outlook. In retrospect, the cryptocurrency has surged by more than 300 percent in the last 12 months on narratives that ranges from renewed institutional interest to broader mainstream adoption.

Bitcoin hits top at $34,430. Source: CoinStats

That was 2020 in a nutshell for Bitcoin: people betting large on Bitcoin’s heroic narratives of protecting investors from inflation and fiat depreciation with a single masterstroke known as “scarcity.”

There can only be 21 million BTC units ever which sounds appealing to many, primarily as global debt closes towards $277 trillion, led by massive money printing done to aid economies through the coronavirus pandemic. In simple terms, the cash reserves one holds would likely lose its value over time.

“Bitcoin solves that.”

The narrative has spilled into 2021. Many mainstream analysts—not just pseudonymous entities on Twitter—see Bitcoin growing further into the year. All have come with their own set of reasons and price predictions for the same. Here are the top three curated by CoinStats.

#1 Plan B: $60,000

If there is one model that has correctly mapped Bitcoin price through past to predict its future, then that is the stock-to-flow (S2F) indicator. In retrospect, it forecasts the cryptocurrency’s prices based on its growing scarcity after each halving (more details here) against a potentially rising demand.

"If history is any guide we could see $100K in 3-8 months," says PlanB after studying the last two Bitcoin post-halving rallies.
“If history is any guide we could see $100K in 3-8 months,” says PlanB after studying the last two post-halving rallies.

In December 2020, the S2F creator PlanB noted that the Bitcoin’s price could reach $60,000 by the end of 2021. The analyst cited the ongoing quantitative easing and stimulus programs behind his bullish bias. Meanwhile, he expects Bitcoin to hit $100,000 if the global debt surges further higher.

#2 Bloomberg: $55,000

Just sitting below PlanB’s bullish prediction is the one provided by Bloomberg. The globally recognized financial news portal said in its research report that the Bitcoin price would hit $55,000 by 2021’s end.

“Bitcoin will maintain its propensity to advance in price into 2021, in our view, with macroeconomic, technical, and demand vs. supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap. The $10,000 mark has shifted to a critical support level after serving as the crypto’s resistance mark since 2017.”

the report read.

Meanwhile, Bloomberg’s senior commodity analyst Mike McGlone noted that Bitcoin is discovering its price primarily as it attempts to replace gold as a safe-haven asset.

“Its in early days of mass adoption,” he stated.

#3 Thomas Lee: A $116,000-$120,000 Bitcoin

Thomas Lee, managing partner and the head of research at Fundstrat Global Advisors, believes Bitcoin could quadruple its value in 2021. He concluded bullish when the BTC/USD exchange rate was $29,000.

That roughly puts his yearly upside target in the range of $116,000 and $120,000.

Since you’re here, feel free to check out the CoinStats cryptocurrency portfolio management app to track and manage your Bitcoin and altcoin investments.

Published by Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

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