With it’s mid-autumn rally, there is a case that Bitcoin will reach $100,000 by the end of 2021. In early November Bitcoin recorded a new record high and currently trades near $63,000. Will Bitcoin’s rally continue into the end of 2021?
What is Bitcoin?
Bitcoin is the world’s first widely-adopted cryptocurrency. With Bitcoin, people can directly, and securely, send each other digital currency on the Internet. Bitcoin is also decentralized. This means any two people, anywhere in the world, can send Bitcoin to each other without the involvement of a bank, government, or other financial institution.
Bitcoin targets $100K
While Bitcoin bulls are always optimistic about the value of the digital currency, many central banks and established financial institutions are beginning to believe in Bitcoin and offer their customers access to trade the cryptocurrency or invest in BTC in the form of Bitcoin ETF’s.
Many respected analysts and pricing models show the price of Bitcoin should reaching as high as $120,000 by Christmas 2021. That would be close to a 100% gain from the original cryptocurrency’s current pricing.
However, there seem to be just as many respected analysts that are calling for a price correction for BTC coming in December.
Institutional Adoption Supports BTC Growth
Earlier this year, El Salvador adopted Bitcoin as the official currency of the entire country. Back here in the U.S., The mayors of Jackson, TN, and Tampa, FL, have committed to convert their next paychecks into bitcoin. This trend was kicked off by the mayor of Miami, followed by NYC Mayor-Elect Eric Adams.
Just this week, a draft bill seeking to allow Brazilian workers to be paid in bitcoin was presented to the country’s Deputies Chamber on November 5.
More bullish news includes recent reports of the possibility of a Bitcoin futures ETF approval by the US regulator have worked to boost the price of Bitcoin.
Government Regulation, Not Banning of Bitcoin
Fed Chairman, Jerome Powell came out with a statement last week that the United States is not likely to ban Bitcoin or other legitimate cryptos. This revelations squashed many worst fears of BTC holders and has maintained investors’ faith in Bitcoin.
Recent U.S. Monetary policy actions have been inflationary, which combined with the increasing federal deficit, threaten the status of the U.S. dollar. Bitcoin, on the other hand, holds the promise of being a storehold of wealth and a hedge against the dollar’s decline. This is due to the limited supply of Bitcoin which many are now likening to “digital gold”.
Will Bitcoin reach $100,000 by the end of 2021?
Because of the bullish trends described above, many crypto enthusiasts have the $100,000 price target for Bitcoin as a real possibility. While investors can never be sure when fear, uncertainty and doubt will appear in the headlines, barring any major bearish developments, Bitcoin could be on it’s way to $100,000 by New Year’s Eve.