The crypto market is totally in bull run. All the digital currencies in the market are in the green. Bitcoin’s steep rise can be attributed to a variety of factors. Some expect bitcoin to become a mainstream payment method in due course. Others see bitcoin as a hedge against inflation as governments and central banks turn on the stimulus taps in response to the COVID-19 pandemic. Yet others view it as a safe-haven play during the COVID-19 pandemic, something akin to gold, according to analysts.
The bitcoin price, after suffering through a three-year bear market, began to rally in October—breaking into fresh territory last month as a wave of big-name investors named bitcoin as a potential hedge against inflation.
By the way, investment banking giant JPMorgan has called a long-term bitcoin price target of over $146,000 based on the assumption that the cryptocurrency will grow in popularity as an alternative to gold, Bloomberg reports.
“A crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” strategists led by Nikolaos Panigirtzoglou wrote in a note on Monday. “Bitcoin’s [current] market capitalization of around $575 billion would have to rise by 4.6 times – for a theoretical bitcoin price of $146,000 – to match the total private sector investment in gold via exchange-traded funds or bars and coins.”
According to Forbes, the co-founder of BTC China – Bobby Lee – no longer believes in the use cases of blockchain technology outside the world of Bitcoin. The DLT (Distributed ledger Technology) is the main deal that is more likely to transform our lives. No doubt, the government have also used this technology for a lot of pilots.
For instance, blockchain technology is used for land registry in Georgia. This has greatly reduced the time, as well as the cost, of registering a property. Many governments, all over the world, have adopted this technology for one thing or the other.
Bitcoin price prediction 2021
CEO and founder of Yield Coin, Samuel Leach, talked about Bitcoin’s future: “The inherent volatility of the cryptocurrency means that it is difficult to predict with any kind of finite accuracy. However, the outcome of upcoming events will go a significant way to determining the price.
“Intercontinental Exchange, the operator of the New York Stock Exchange is planning to launch Bakkt – a federally regulated market which will seamlessly and safely enable institutions and consumers to buy, store and sell crypto assets. Bakkt is supported by corporate leviathans like Microsoft, Starbucks and the Boston Consulting Group, and stands to bring levels of trust and transparency to the market currently unseen.
“Similarly, the crypto exchange ErisX recently raised $27.5m from Fidelity Investments and Nasdaq and launched crypto derivatives in 2019. Fidelity is one of the world’s largest asset managers, controlling resources worth about $2.5trn. Likewise, the Nasdaq operate the second largest stock exchange in the world, after the NYSE.
“The involvement of such significant financial institutions and ‘mature’ crypto trading products will lead to an appreciation in Bitcoin’s price.
“A defined regulatory movement will also lead to an improvement in Bitcoin’s price. Proper regulation will make it safer for speculators and will lessen the presence of fraudsters or ill thought out products in the market. Further, it may encourage involvement from institutions, who to this point have been wary of engaging in anything crypto related for reasons of compliance.”