Global Pandemic and Bitcoin
Crash in May 2021
Will Bitcoin touch $100k?
Will Bitcoin touch $100k in 2021? A question that has been flooding the internet for a long time now. The year 2020 has been great and one of a kind for all the Bitcoin investors and crypto enthusiasts. Despite being surrounded by the pandemic a lot of people across the globe showed their interest in cryptocurrencies. While few crypto promoters didn’t hesitate from calling it the ‘Bitcoin moment’ there were investors who were still skeptical about the crypto assets.
The new-age digital currency of Bitcoin saw a boom in price from INR 6,00,000 to a whopping INR 55,00,000 ( at the time of writing). The Bitcoin rally has been crazy. Even many Indian crypto exchanges shared their data of the surge in crypto investors despite the surge in prices by 600%. Although we saw a dip in the Bitcoin prices in the mid of May which lasted for three whole months, Bitcoin soon recovered and touched a new ATH of $66,000 making the current crypto market capitalization more than $ 2 trillion.
Read how the Bitcoin rally helped in a surge of prices and hit a mark of $ 2 trillion after dipping in prices for three months.
Crypto exchanges in India report that millions of retail investors have already joined the crypto bandwagon. However, the question still remains will Bitcoin touch $100,000 in 2021? Putting the short-term corrections aside, analysts believe that Bitcoin has the ability to touch $100,000 (INR 72 lakhs) by the end of 2021 or early 2022.
Global Pandemic and Bitcoin
Most people became open to cryptocurrencies especially Bitcoin in the year of pandemic 2020. Even institutional investors such as Tesla, Square Inc., Microstrategy started to preserve their assets in Bitcoin. Bitcoin turned to be a great store of value in the year 2020.
Read about the top 5 institutions bullish on Bitcoin.
Crash in May 2021
Bitcoin crashed in May 2021 after the tweet of Elon Musk stating that mining of Bitcoin has hazardous impacts on the environment of our planet. Not just the tweet but several other factors were responsible for the crash. Many investors also thought that this crash was imminent due to the unprecedented rise in the value of Bitcoin. Other factors such as China reinforcing its stance against cryptocurrencies and Tesla withdrawing their stance from allowing cryptocurrencies as payments led to this crash.
Most of these cryptocurrencies are still reeling from the after-effects of these announcements – Bitcoin is down by 20%, Ethereum went down by 20% while Binance coin was down by more than 36% during this crash.
Will Bitcoin touch $100,000 in 2021?
The digital cryptocurrency once regarded as mysterious and full of flaws is the talk of the decade. It has exploded both in popularity and value. It has mainly become mainstream – Giant financial institutions like Paypal, Visa, JP Morgan, etc., are offering crypto services, and more retail investors are interested in purchasing Bitcoin now more than ever.
Despite being a volatile market, the value of Bitcoin has surged in the past two years. The two things that have highly contributed to this Bitcoin rally are better trust development and the global trends around it. The major concerns around Bitcoin in the starting phase were of it getting hacked or whether decentralization was the way that must be reckoned. Many of these issues have been resolved and answered down the decade. Today, Bitcoin and cryptocurrencies are some of the most reliable technologies and it does not break.
At the same time, the world is now witnessing Bitcoin being associated with more institutional investors like Tesla, Microstrategy, etc. Most institutions are now considering converting their cash reserves into Bitcoin as a hedge against financial crises.
Numerous other cryptos have also joined the race and are revolutionizing the world as we see it today. Blockchain technology and various crypto protocols have their utilities in different sectors ranging from finance to gaming, marketing, and even advertising. Bitcoin is now closer to $100K than it is closer to $0. The recent developments around Bitcoin worldwide are a testament to the fact that it is inching closer to becoming a mainstream asset class.
Experts believe that if the trend continues Bitcoin will soon hit $100k probably by the end of 2021. The model used to measure the scarcity of commodities like Gold, stock-flow-model predicts a 94% correlation to the Bitcoin price touching $100k in 2021.
Also, read whether Ethereum will touch $10,000 in 2021.
The Final Takeaway
There is no doubt that Bitcoin has become one of the mainstream assets. Experts believe that there are high chances of this asset touching an ATH of $100k. However, the exact time might vary, given the volatility of the market.
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