For the past few years, the price of cryptocurrencies, like Bitcoin, has increased dramatically. While there has been a lot of turbulence along the way, the price of Bitcoin broke the $50,000 mark in February 2021, which is more than 100 times the price of it just five years ago.
Due to this impressive return, many wonder where the price of it could go in the next year. There are a wide variety of expert predictions for 2021 about what the price of the coin could be.
Thomas Lee Predicts Bitcoin to Quadruple in 2021
One individual that has a very bullish outlook on Bitcoin is Thomas Lee. Earlier in 2021, Thomas Lee stated that he believed the price of Bitcoin could more than quadruple in this year alone. He is a prominent and well experienced Wall Street professional and is currently the Head of Research at Fundstrat Global Advisors. He believes that there is a lot of promise in the coming year for those that would like to invest in this digital currency.
Elon Musk Gives Bullish Forecast
Another individual that has been a notable proponent of Bitcoin is Elon Musk. Today, Elon Musk is considered one of the top entrepreneurs and visionaries in the world. He is the head of Tesla and SpaceX, both of which are transforming the world.
Recently, through Tesla, Musk authorized the purchase of more than $1.5 billion worth of Bitcoin. This is a substantial investment for one company to make and gives optimism to investors all over the world. Musk has stated that he believes the price of Bitcoin will continue to appreciate and could be well over $100,000 in the near future, which made his approximate $30,000 per coin purchase a bargain.
Citibank Analyst Predicts Near Term $318,000 Price
Citibank is well known for being one of the top banks in the world. It also has a large team of research analysts that are among the most reputable and respected in the world. Recently, one of the analysts for Citibank predicted that the price of Bitcoin would soon reach $318,000 per coin. While the coin has been quite bullish over the past year, the bank analyst believes we are only about half way through it and that it could hit his predicted mark by December 2021.
Anthony Pompalino Predicts that the Price Will Reach $225,000
One of the leading market experts of Bitcoin is Anthony Pompalino, who is the co-founder of Morgan Creek Assets and is known for being a big proponent of Bitcoin and other digital currencies. Recently, he made a remark that he believes the price of the coin will go up another 300% from February 2021 levels as it could reach $225,000 in the near future. He has continued to warn investors that this will be volatile along the way. While there is promise for continued all-time highs, there will be ups and downs along the way.
Why Investors are Bullish on Bitcoin
There continues to be a lot of bullish predictions when it comes to Bitcoin. Beyond speculating based on past success, there are a variety of reasons why people believe that the coin will continue to rise in value. One of the reasons for this is that it has finally become more accepted as a form of investment from institutional investors. A variety of hedge funds and investment firms have been buying up large stakes of the currency.
Another reason that this coin will increase in value is that there is a limited supply. Unlike the US Dollar, additional Bitcoin cannot be printed. In fact, it is becoming harder to mine coins and some are lost on a daily basis. This actually could reduce the effective supply, which will increase the value of the coin further. This can also make it a good way to hedge against inflation as key inflation rates tick up in markets all over the world.