Strategists at BTIG are convinced that Bitcoin has finally “come off age” and will be making an upward price movement in the future. Now, they are setting a $50,000 price target on the premier cryptocurrency by the end of 2021.
Bitcoin’s journey to the moon
Bitcoin has been reaching new highs towards the end of the year. According to Coin Metrics, the cryptocurrency topped its 2017 highs of $19,000. The price movement of the coin has constantly gone northward. After it reached the $19,000-mark last week, it took a small backward tilt to $17,000 before eventually reaching highs over the weekend.
However, the 2020 bull market is very different from the 2017 market. The 2017 bull market was a result of frenzied trading as the crypto asset grew into a bubble that eventually popped in 2018. However, this time, the price rise is fueled by increased investments in the cryptocurrency from institutional investors. Moreover, governments and major investors, especially in China, are also showing more interest in the digital coin.
Other bullish predictions
BTIG is not the only bullish prediction in the cryptocurrency space. Other analysts are also giving their bullish predictions about the cryptocurrency for 2021. Citibank analyst Tom Fitzpatrick has an even more mind-boggling view. He recently wrote a note in which he detailed how Bitcoin could hit $318,000 by the end of 2021.
Most predictions are taking better crypto adoption as one of the primary reasons behind this goal. The growing number of crypto transactions on Square and PayPal’s interest in digital currencies is showing a real-world use case for Bitcoin which will make it a part of everyday life. Fitzpatrick also suggests that looking at the movement of Bitcoin between 2010 and 2011, it is possible that the same trajectory repeats in 2021 as well. The impact of the coronavirus and the actions taken by the US Federal Reserve will play an important role in this.
Remember, all trading carries risk. Past performance is no guarantee of future results.