Representatives of the cryptoindustry have more than once predicted a rise in the price of BTC up to $ 1 million. Experts assessed the prospects for digital currency and named several arguments in favor of the growth of its rate by thousands of percent.
Since the beginning of 2020, bitcoin has risen in price by more than 150%, to the current level of $ 18.3 thousand. Many factors helped the growth of the value of the cryptocurrency. On the one hand, a halving took place on the coin network, as a result of which the miners’ reward decreased from 12.5 to 6.25 BTC. On the other hand, there was a crisis in the world, against the background of which large, including institutional investors began to transfer part of their capital to BTC, as a defensive asset. In addition to this, the PayPal payment system added support for the digital coin, which attracted new users to the crypto market.
Until the historical maximum of $ 20 thousand is renewed, bitcoin remains in price by another 9%. But many representatives of the cryptoindustry are sure that this is not the limit. For example, Tom Fitzpatrick, a top manager at Citibank, suggested that by December 2021 the price of the first cryptocurrency could rise to $ 318,000. An equally optimistic forecast was voiced by Alex Saunders, head of Nugget’s News. He expects to increase the value of the coin to $ 100 thousand within 5 years, and by 2035 – to $ 1 million.
The forecast of a rise in bitcoin price to $ 1 million was previously proposed by the founder of Global Macro Investor Raul Pal. He believes that the price of the coin will reach this mark within 5 years. The key reason for this growth, Pal called the influx of institutional investors into the cryptocurrency market, who realized that the recovery of the global economy after the coronavirus pandemic would take longer than expected.
The rise in the bitcoin rate to $ 100,000 is a realistic scenario. This position is shared by Andrey Podolyan, CEO of Cryptorg.Exchange. He explained that cryptocurrency is increasingly penetrating into various areas and for many is already not only a means of payment and speculation, but also savings. At the same time, Podolyan noted that the digital coin could be negatively affected by competition from actively developing digital currencies of states.
“$ 100,000 is a very real figure for me. For example, there was news that in the United States, part of the pension can already be formed in BTC. Imagine how many cue ball will be delayed in the long term. All this mass will cease to put pressure on the market and the price … I will not undertake to argue that bitcoin will never cost $ 1 million, “Podolyan shared.
The possibility of increasing the cost of bitcoin to $ 100 thousand was also admitted by Nikita Zuborev, a senior analyst at Bestchange.ru, specifying that this could happen in the coming year. He gave several reasons for this growth. The first is the increased demand from institutional investors, which began to move into the “FOMO” stage, when the user buys an asset out of a sense of lost profits.
“The fear of lost profits (FoMO) has already come to the institutional market. The rise in popularity of cryptocurrency among large investors adds to the chances of cryptocurrency adoption by society at a deeper level. If earlier public opinion expressed skepticism that no one would allow retail investors to become millionaires, then the scenarios for the enrichment of corporations and the “powerful” are quite realistic, ”Zuborev said.
The second prerequisite for the rise in the price of BTC, he called the unstable situation in the economy and the active emission of the dollar. The Fed prints fiat currency, it starts to suffer the consequences in the form of rising inflation. Against this background, a digital asset with limited emission looks like an interesting way to preserve capital, the analyst said.
In his opinion, one should not ignore the widely recognized Stock-to-Flow (S2F) model, which after the spring halving is showing its worth. If the scenario of this model continues to be implemented, then the six-figure price of bitcoin is predicted in August – September 2021, Zuborev said. In addition, he recalled that Bitcoin has twice shown growth of 1000% within a year (in 2013 and 2017), and then the majority also spoke about the impossibility of such growth.
Zuborev also did not exclude a scenario with an increase in the cost of bitcoin to $ 500 thousand – $ 1 million, the probability of this is “not zero.” He believes the crypto market still has many growth prospects, as evidenced by the sudden rise of the DeFi sector. The tokens related to it increased in price by thousands of percent in a short period of time, for example, the YFI token added more than 100,000% of the price in a month and a half.
Denis Voskvitsov, head of the fintech company Exantech, is also optimistic. He suggested that in 2021 Bitcoin could significantly exceed the historical maximum of $ 20 thousand. However, the new maximum may become insurmountable for the next three years, this is due to the growth cycles inherent in BTC.
“Bitcoin has up and down cycles associated with halving. In the first year, Bitcoin accelerates, and then the hype fades away, and the quotes decline. In general, in the lane