Bitcoin has been awash in successive bears and bull runs through 2021 and the first half of 2021, peaking at $63,588.20 on April 13 before hitting a seven-month low of $29,789.90 on July 20.
While this highlights the asset’s inherently volatile nature, it’s also interesting to note that Bitcoin’s price (which is now back to $47,279.50) is now more than four times higher than exactly a year ago ($11,329). ,10).
With the market clearly buzzing and sentiment rising, it should come as no surprise that Bloomberg predicts that the price of BTC could approach $100,000 by the end of the year. We’ll explore this in more detail below!
A turbulent year so far for BTC
Bitcoin had a great opening to 2021, with Tesla’s $1.5 Billion Investment in February causing the price of the asset to rise sharply.
This trend continued through the asset’s peak in mid-April, before Tesla CEO Elon Musk expressed concerns about energy consumption associated with BTC’s mining process. This accelerated Bitcoin’s ensuing bear run, with the asset jumping about 50% of its value in just eight weeks.
Energy consumption is certainly negatively impacting BTC’s market sentiment, with data from the University of Cambridge and the International Energy Agency showing that Bitcon mining consumes about the same amount of energy as the Netherlands did in 2019.
However, BTC has shown greater resilience of late, thanks in part to rising adoption rates and greater institutional influx across the globe.
According to Edward Moya, who is? the senior market analyst at OandaBitcoin continues to consolidate above the upper limits of its recently tight trading range, with JP Morgan recently establishing a BTC fund for wealthy clients.
While this didn’t immediately help the asset break above the $40,000 level, it is indicative of more support and more sustainable demand in the market.
Currently, BTC has embarked on an upward trajectory as it keeps flirting with the $50,000 level again.
So, what does the rest of 2021 hold for BTC?
The question that remains, of course, is how far can the price of BTC rise between now and the end of 2021?
Predictions vary from expert to expert, although the general consensus is that Bitcoin is more likely to break the $100,000 mark than fall to $20,000 or below this year.
More specifically, while the $50,000 is expected to provide a temporary cap after the ongoing bear run in the second quarter, it will foreshadow the beginning of a resting bull market for crypto assets that will lead to continued growth for the rest of the year.
Ultimately, this could see the price of BTC peak at a potential high of $100,000 before the year is out, while it is highly likely that Bitcoin will remain above $40,000 and revise its $63,588.20 sometime in the coming months.
This will also be driven by greater adoption and correlation with traditional assets as in 2020 BTC’s 260-day volatility fell to its all-time low. now great alternatives. If this trend continues against the backdrop of increased demand and adoption, we can expect BTC to live up to much of its price potential for the remainder of the year.