Bitcoin (BTC) set a new all-time high price this week, with the leading cryptocurrency surging past its previous high of $19,666 as recorded by BitStamp on December 16, 2017.
This new milestone looks to crown a very remarkable year for Bitcoin after a huge crash to $3,800 following the outbreak of the coronavirus pandemic in March 2020.
To once again assert its position as the asset of choice for investors, Bitcoin has gained over 150% in the past eight (8) months, outpacing other traditional investments like Gold, Government Bonds, Oil, Stocks, and many more.
Just last week, after a first shot above $19,000 since 2017, BTC flash crashed to below $16,800; a level which has now proved to have been a discount buy zone for bulls as the coin rallied back during the weekend to set tone for the new price high.
Across the cryptocurrency market, many Bitcoiners believe that this current price mark is only a test for a major bull run in the coming months with predictions set at $30,000 – $50,000 – $100,000 in 2021 and beyond.
An analysis of the current bullish trend will point to:
1. The Flow of Institutional Money into the Crypto Industry:
This year alone, over $500 million has been invested in Bitcoin by MicroStrategy, with $10 billion worth of cryptocurrency (largely BTC) purchased by Grayscale investment funds; including buy orders from Square Inc and others.
Also, big companies such as PayPal have hopped on the Bitcoin train in an obvious “if you can’t beat them, join them move.”
2. Increasing Popularity and Adoption: When Bicton hit its previous all-time high in December 2017, it had little popularity with many who bought at the time buying for FOMO.
At this new ATH however, the bitcoin and crypto industry has grown in popularity; from becoming a more discussed asset, to talks of regulation, adoption for payments, and a hedge against the failure of fiat currency in the recent years.
To its credit, and credit of industry enthusiasts BTC has become a household name, and more publicity equals more demand for this already fixed supply/scarce asset.
3. Growing Retail Interest: While the big companies play ball, individuals and retail investors do not want to be left out.
Statistics show a massive growth in the number of active Bitcoin addresses, notably belonging to holders who are intent on getting a share of the bull market.
4. The Post Halving Effect: Another bullish indicator is the historical rise in BTC price few months to one year after each halving event.
The 2012, 2016 halvings ushered in new price highs after each event. Hence taking this historical analysis, many expect a repeat of this in 2021 with predictions ranging from $30,000 to $50,000.
In all, to hit these new targets, Bitcoin will have to break above the next major resistance at $20,000 which will mark a new phase for the bullish run.
This post has been updated to show Bitcoin has corrected to $19,200-$18,890 region at time of this publication.
What is your price prediction for end of the year? Are you bullish? Share with us in the comments below.