Bitcoin had made it through a historical year with 23,000$ as its latest all-time high, all while recording the price target of 20,000$ for the first time. While investors, traders, and holders seem to be rather optimistic regarding the year 2021 when it comes to new gains and new highs for BTC, however, experts in fintech and crypto have more expectations from BTC in the following year. What are some of the predictions regarding Bitcoin’s future in 2021?
Central Banks as Competitors to Bitcoin
There is a survey conducted by the Bank for International Settlements, indicating that 80% of the world’s banks are already working on some form of digital currency, i.e. cryptocurrency. Some banks have already issued official cryptos, while countries like China are taking digital currency experiments to new levels. As China is tapping into the potential of crypto, how Bitcoin can be affected by bank-owned and government-owned digital currency? Governments and banks can use incentives to encourage people to invest in their currencies, which means that Bitcoin might get competition. Furthermore, that could affect the price of BTC to dip. Still, Bitcoin’s supply is limited and its value is rising with the declining supply and rising demand.
Bitcoin and Price Volatility: Will High Volatility Levels Prevail in 2021?
According to fintech and market experts, Bitcoin’s volatility won’t change in 2021 either, which means that Bitcoin’s price could rise and drop drastically and radically in numerous market cycles and sometimes without a warning for most BTC traders. Bitcoin reached 23,000$ in 2020, while in 2019 the top crypto went to as low as 4,000$, once again showcasing a real example of Bitcoin’s price volatility. That means that Bitcoin has the potential to reach new highs in 2021, but also to touch new lows at almost the same probability.
Image credits: Cover photo taken from Clifford Photography on Unsplash
