What Are the Odds of a Six-Figure Bitcoin in 2021?

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Bitcoin (BTC) scaled a new all-time high this week, climbing to nearly $65,000 on Wednesday, April 14th. With Bitcoin’s price now in “blue sky territory” and its market cap safely hovering about $1.17 trillion, the big question is: how far will the new bull market take the BTC price this year?

Rounding Up The Most Famous Bitcoin Price Predictions

Here are some of the most well-known cryptocurrency individuals and organisations that have given bullish Bitcoin price forecasts:

JP Morgan

Analysts at JPMorgan, a major US investment firm, were confirmed in March to be eyeing a Bitcoin price of $130,000 – but no deadline was provided for their forecast. Jamie Dimon, the CEO of JPMorgan Chase, has previously been outspoken in his criticism of Bitcoin. However, the firm’s growing presence in blockchain ventures represents the rising convergence of cryptocurrency inside the conventional finance field.

MicroStrategy

Michael Saylor, the CEO of MicroStrategy, is well-known for transforming his company’s cash savings to Bitcoin and inspiring other industry executives to do the same. At the time of publication, MicroStrategy had over 90,000 BTC, which was worth about $5.5 billion. Saylor, unsurprisingly, is very optimistic on the BTC market, stating in a March interview that he “can see Bitcoin going to a million… [or] five million.”

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Pantera Capital

Pantera Capital, the first American cryptocurrency venture vehicle, forecasted a Bitcoin price of $115,000 by September 2021. Pantera’s prediction is dependent on the Stock to Flow (S2F) model of Bitcoin’s price, which has demonstrated a high degree of predictive power so far. Given the time-specificity of Pantera’s call, as well as their openness about its rationale, we believe this is the most carefully considered forecast.

bitcoin btcusd

Daily Bitcoin chart showing the bull run since late 2020 until present | Source: BTCUSD on TradingView.com

A Rally-Supportive Economic Environment

Predictions, regardless of who makes them, are insufficient to propel Bitcoin into the six-digit price range. Individual investors as well as large institutions are required to be enthusiastic buyers and hodlers.

In terms of the above, we’ve already listed MicroStrategy’s crypto corporate treasury. Maybe, heeding Saylor’s counsel, which was sent to thousands of corporate representatives, Time Magazine recently announced their own acquisition of Bitcoin.

Furthermore, with financial behemoths such as BlackRock and MasterCard recently confirming their participation in Bitcoin, there is little question about the institutional demand for Satoshi’s creation.

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stock to flow

The stock-to-flow model projects much higher prices for BTC | Source: Digitalik.net

The anticipation – and observation – of high inflation is perhaps the most convincing factor pushing buyers, large and small, into Bitcoin. As a result of central banks around the world issuing billions, if not trillions, of new fiat units in reaction to COVID 19, the stage is set for falling fiat value and increasing prices for goods and services.

With high inflation everywhere except government figures – steel rates, for example, up threefold year on year – it’s no surprise the demand for heavy, deflationary money has never been stronger.

 

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