At this point, most traders will be more surprised if Bitcoin showed a significant pullback than if it cleared another new high, because shortly after moving past the $30,000 mark, the world’s largest cryptocurrency asset displayed even greater strength and resilience than it had in the past two weeks, swiftly breaching the $34,000 mark. In response to Bitcoin’s growth, the CEO of the US branch of Binance Catherine Foley is making a huge price prediction on Bitcoin’s price byb the end of 2021.
“Where maybe we thought maybe $50,000 made sense, this number is definitely going to be a little bit higher than that in my opinion. I think we’re going towards $75,000 to $100,000 for Bitcoin by the end of 2021,” she said.
Bitcoin’s historic bull run, which has so far shown no signs of slowing down, was accelerated due to many macroeconomic factors this year, allowing its value to skyrocket quite literally this year, judging from the shape of the line chart below. Bitcoin’s market capitalization is closely approaching the $700 billion USD mark.
The astonishing price rally has certainly caught the attention of even those outside of the crypto industry, and for the first time in a long while, mainstream financial publication The Financial Times (FT) ran a front page segment on Bitcoin topping the $30,000 level to commemorate this unfathomable feat.
“The number keeps going up as the market has seemingly never been more bullish,” said Paolo Ardoino, CTO at Bitfinex. “Bitcoin and technologies such as the Lighting Network are providing building blocks to a new age of money still almost indecipherable to many outside of crypto. We see a very bright future ahead for all bitcoin holders.”
Others are not quite as convinced, as financial analysts remain skeptical of Bitcoin’s status as a good inflation hedge, and its volatility. To most of them, Bitcoin will soon enter a consolidation period after a major pullback.
“Easy liquidity has helped bitcoin with an easier route to rally. However, the current rally looks stretched and ripe for a fall,” said Sahil Kapoor, chief market strategist, Edelweiss Securities Ltd.
This is aligned with what some crypto trade analysts have predicted so far, but despite expectations that Bitcoin would be forced to take a break from its multiple price surges, it has pulled through across four weeks to repeatedly set and demolish new price milestones that were only achieved a few days ago.
