It can generally be inferred that BTC had an impressive run in the year 2020. Given that it proceeds similarly in 2021, with relatively lesser volatility and any unforeseen meltdown, word has been around that the BTC might even cross the ever anticipated $100,000 mark this year for the bulls.
Bitcoin, BTC to USD witnessed a huge 227% rise during the end of 2020. Market analysts believe that this rally might have been even better if BTC had stuck to the $24,000 levels, following the all-time high of $24,244 on December 20.
As the new year began, it again saw a whopping rise in its price, after it crossed a new all-time high of $40,000 BTC to USD, in the first week of this year.
The investors, however, will surely be wondering if the bitcoin can be consistent with its uptrend in the price, after a big low of $4,000 during March last year.
Bitcoin increased by a whopping 506% during the last three quarters of 2020, given from the trough to the peaks.
If we forecast the bitcoin according to the same track, it is predicted to hit a peak of $143,000 towards the end of 2021, before the market sees any downwards trend again.
The world witnessed the SEC file a lawsuit against Ripple in the United States during the end of December last year. They claimed that the XRP had not been registered as a security by the company, Ripple. This caused a worldwide damage to the reputation as well as the value of Ripple’s XRP in the cryptocurrency market.
In November, XRP fell from an all-time high of 0.78716 to a low of $0.2000 during the month of December last year. This dip was of around 746%, which just occurred within a month. Due to this action of the SEC move, Bitcoin also greatly suffered, and witnessed a pullback down to $21,000 levels before it became steadier again. The wider market also fell in reverse, causing a decrease in the total cryptocurrency market capitalization from $680.60 billion to $590.85 billion. It was probably not comparable to the collapse of 2018, but it surely hurt the investors. During January 2018, the total crypto currency market capitalization rose to an all-time high of almost $762 billion before falling back to $91.24 billion during December the same year.
Given the market steadiness around this time, a lot of the digital currencies including Bitcoin have remained steadier in the market.
However, the timing of SEC’s action on XRP must be questioned, given Ripple’s XRP is not a new contestant in the crypto market. Also, digital currencies were under scrutiny during the end of 2017, so why were they being questioned yet again last year.
We believe that it might have a link with its reach towards $1.00 levels, which was certainly a noteworthy rally from a low of $0.1165 in March.
The cryptocurrencies are still to become openly acceptable to the regulators, in spite of the well-known “Bubble” of 2017. It does, however, look like the SEC was after the next rally with its silver bullet, which was about 3-years in the making.
Although the regulators still prove to be a threat and risk for the crypto investors, it should be noted that it is not just the risk and danger in the market.
There have been some significant returns for investors who became a part of the crypto market at the beginning of last year. There is also a likely upside for those trying to enter or reenter the market. The demand for bitcoins can be surely driven by a greater level of acceptance and adoption among the investors in the market. Visit bitcoin compass for more information.
The more important question in the minds of the investors is how much surge will the price of bitcoin see this year?
Well, that mainly depends on how the Bitcoin performs during the rest of this year and how the other factors which affect its trend fold out.
Given that Bitcoin dodges slipping back to $20,000 levels, Bitcoin bulls surely set the bar higher. Although rumors of even a million dollars have been circulating, we all know that is not quite possible.
A rise to $100,000 fueled by a rapid momentum, though? It can’t be ruled out.
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