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The most dominant crypto Bitcoin price rallied significantly, breaking all the resistance levels to form a new all-time high above $37,000. With the intensified surge, the total market capitalization of the whole crypto market hit $1 trillion in the early hours of trading.
The year 2020 was one of the progressive years for the entire crypto market as the major cryptocurrencies especially Bitcoin experienced a mass adoption and also attracted many institutional investors.
Therefore Bitcoin is expected to carry the same momentum in 2021 by drawing the attention of many other sectors other than just wall street. And hence an accelerated bull run of Bitcoin is anticipated in 2021 which can carry the price towards $100K in the upcoming days as predicted by many analysts.
What can fuel Bitcoin Price to hit $100k in the upcoming days?
Financial Institutions Focusing at Bitcoin
Financial Institutions are investing in crypto assets as they speculate that investing in Bitcoin will be a good decision for the long term as it provides more returns in the future. Investing in Bitcoin helps the institutions to enlarge their assets and to get uncorrelated and enormous returns. Digital payments companies like PayPal and Square are investing regularly and transacting in Bitcoin and other cryptocurrencies.
Expert Price Predictions
According to the US investment bank JP Morgan there is a possibility that Bitcoin could reach $1,00,000 in the year 2021.
According to PlanB, crypto expert Bitcoin’s price will reach upto $1,00,000 within three to eight months.
Katie Stockton, a Bitcoin market technical analyst says that
“The signs of exhaustion that appeared in December were absorbed via a brief consolidation phase and there are no active overbought sell signals”.
ETF (Exchange Traded Fund) possibility
Crypto investors are eagerly waiting for an announcement of US financial authorities regarding the launch of Exchange Traded Fund (ETF), a derivative product for Bitcoin as well as other currencies.
Investment company Van Eck filed an application to the US Securities Exchange Commission at the end of december to launch an ETF for Bitcoin and other crypto currencies.
Increasing Demand for Bitcoin
The supply of Bitcoin is limited to 21 million coins and until now around 18 million coins have been issued to the miners.
Experts say that “As the investors go on increasing, the value of Bitcoin increases”.
Demand for cryptocurrencies are increasing as other financial institutions offer less interest rate and low bond yields.
As per experts’ negative interest rates and inflation, the US dollar is under pressure as money cannot be stored in US dollars medium-term until the US dollar retains its real value. Due to these incidents, the demand for Bitcoin and other cryptocurrencies will increase.