The rising interest of people in cryptocurrencies has changed the whole scenario until now. In India, the current stats for cryptocurrency traders are almost 100.7 million users. In recent, the Bitcoin price hits the ATH of $67,000, creating a buzz of reaching $1,00,000 before the end of 2021. Will the hype created be proven right? Let's find out.
Bitcoin Analysis
At the beginning of 2021, Bitcoin showed a few glimpses to hit the ATH soon. We all sat on our respective seats on the bandwagon and moved through all the ups and dips. Can you guess what majorly could be the reasons for the price surge of Bitcoin?
The hike in Bitcoin price was its supply and demand playing a lead role in price fluctuations. In current, the market supply of Bitcoin is 21 million, and reaching its maximum supply, mining will no longer create more Bitcoins.
As per the Bitcoin price predictions made in the past, the change in prices has seen dips and rises after the market manipulation. It is one of the disadvantages of being a global currency. For instance, when China declared to ban crypto mining, the market crashed the next day. During the time, Bitcoin was stable with no low lows. But, the ban crashed the cryptocurrency market by 30 per cent. With the market crash, the Bitcoin price was dragged to near $30,000, creating a whole new difference.
In addition, the Bitcoin market status gets largely affected due to the cryptocurrency exchanges controlling significant reserves of Bitcoin. To second on the statement, let's understand it with an example. In 2014, Mt Gox, the world's first-ever digital asset exchange filed bankruptcy after declaring that they lost 8,50,000 Bitcoins in a hack. With this news, people started to lose hope in digital assets, and the trading partially slowed down. At that time, Bitcoin price saw a fall of 32 per cent, leading its price fall from $850 to hit the lower circuit of $580 per coin.
Also, in 2013, Mt Gox faced a backlash because of rumours of poor management and lax security practices. At the time, the market crashed down by 29 per cent.
Did you notice one thing? Cryptocurrencies are evolving globally for decades. It forms a connection between price fluctuations and to what degree they are influencing the global market. At the time, Bitcoin reached a price mark of $1000, creating a buzz that retail markets are now accepting payments in Bitcoin. That buzz highly influenced the market, leading to Bitcoin price change for the following weeks on 2014 January.
Also Read: Matic (Polygon) Price Prediction – Will MATIC Price Hit $5 in 2021?
What Made a Bitcoin Price Reach the ATH in October 2021?
At first, the push in the Bitcoin price change was because of Al-Salvador. It became the first country to legalise Bitcoin as its native currency. The regulatory has barred the reach of cryptocurrency for almost a decade, but when they saw people showing huge interest in bringing up one global currency. It led the government to think of the favourable outcomes these digital assets can bring.
Secondly, the factor that made Bitcoin reach the pinnacle for 2021 was institutional interest in purchasing Bitcoin. Many big investors and spokespeople were favouring Bitcoin, an asset that can be used during the hard time when inflation is at its peak.
Thirdly, the announcement of launching Bitcoin futures trading at the Chicago Mercantile Exchange (CME) and the CBOE Options Exchange (CBOE), hiked the Bitcoin price closer to the 20,000 mark in 2017. During the Bitcoin halving event, the Bitcoin rewards for mining reduced. It also showed a reduction in miners count. Therefore, the price change since the 2020 halving event has seen a surge of over 300 per cent to date. The halving reward offered to miners also doubles the assets stock-to-flow ratio, impacting hugely on Bitcoin's price.
Fourthly, economic instability is another prominent factor affecting the change in the price of Bitcoin. Since day one, digital assets have placed themselves over the supranational hedge despite local economic instability and government-managed fiat currency. As per the reports, there is an economic activity possible on BTC's blockchain, in case the economy crashes due to government policies.
Fifthly, the taproot upgrade scheduled for November 2021 will also impact the surge in Bitcoin's price. The upgrade will enhance the overall activity of the blockchain by increasing its network usability, making it faster and cheaper in transactions. Also, the advancement will gradually focus on the development of smart contracts. The Taproot is getting developed keeping all the privacy concerns under the roof. As a result, Bitcoin will move a step closer to privacy-related coins from a design point of view.
Also Read: Cardano Price Prediction – Will ADA Price Hit $10 in 2021 End?
Analysts View on Bitcoin Reaching $1,00,000 Sonner
It is not the first time we are witnessing Bitcoin price prediction. After the certified launch of Bitcoin ETFs, we can see the push in Bitcoin price over a week. Although, trading in ETFs and buying BTC will not be the same. Moreover, the cost difference will cost people throughout the time.
The Bitcoin price has seen an uninterrupted fluctuation within a week of ETF approval. The stability maintained by Bitcoin for almost two months shattered. Although, the short-term traders took advantage of the bullish behaviour and turned their thousands into millions.
Bitcoin Price Prediction
According to the statement of Bloomberg analysts, Bitcoin will reach $1,68,000 soon. The analysis seemed to be uncertain because the differences in cost at ETFs and the global market will not let the price of BTC surpass the declarations made.
We need to understand that cryptocurrencies are influential currencies. The steadiness in price makes a currency. The daily fluctuations in the price of a currency accounting for 10 to 20 per cent daily change do not represent its stability for future costs.
The Bitcoin price prediction for 2021 can be more usual. The price will close with an upper circuit of $67,000. The price per Bitcoin by the end of 2021 will reach $63,000 at max. It will be an advantage for the long-term traders who are still thinking of investing in BTC.
Also Read: Dogecoin Price Prediction: Will DOGE Brust Price to $1 in 2021?
How to Buy Bitcoin in India?
There is a huge market space left for people to come and trade. In India, the most trusted exchange is Flitpay. Flitpay has a market dominance of 6.6 per cent with a 99.9 per cent server uptime rate. With a navigational design on our app, you get the independence to trade with an option quick buy and sell with no bar at a minimum transaction. You can trade on Flitpay with as low as 100 INR to the maximum limits of your wallet.
FAQ
What is Bitcoin (BTC)?
It is a decentralised currency without any administrator that can be sent from one user to another over a peer-to-peer network. Bitcoin's transactions are verified by network nodes through cryptography and are recorded in a public distributed ledger called the blockchain.
Will BTC surpass its current ATH?
The Bitcoin price will surpass its present ATH of $67,000. As per Flitpay's analysis, Bitcoin will achieve its new ATH in 2022.
Can Bitcoin reach 100K?
It is estimated by many big spokespeople that will see the price surge in the coming years. The Bitcoin price prediction by Flitpay also says that it might surpass the value of $1,00,000 in the next 2 to 3 years.
How to buy Bitcoin?
Flitpay is the most trusted cryptocurrency exchange in India. If you are looking forward to purchasing BTC in India, we are the only option that treats the user as a part of the family.
Is BTC a good investment in 2021?
For long-term traders, yes, it still is. But for short-term traders, you still need to wait for the opportunity that crashes the prices of BTC and wait for the cryptocurrency to get influenced and reach the sky limit.
What will be the Bitcoin price by the end of 2021?
As per the Bitcoin price prediction, the price of Bitcoin will reach $63,000 at max. Seeing the current trend and analysing the past figure, we can conclude that the signs in 2021 from October to December 2021 will be the months of no loss and no gains.
