What is the cryptocurrency Bitcoin price and where is it heading in 2021?
Bitcoin (BTC), the most well-known digital asset probably first came to the attention of most people back in back in 2017, when it surpassed its all-time high of $20,000.
Although there are numerous other cryptocurrencies, those in the know about the big daddy of crypto seem obsessed by it. Little wonder when you consider the roller coaster of a ride this famous digital asset has had since then.
It was not long ago that the price of Bitcoin crashed along with the general markets due to the uncertainty surrounding Covid-19. The price briefly fell as low as $6000 before quickly recovering.
That recovery was ushered in by a) fresh investments coming into the asset and b) the green light that was given by the Securities regulators enabling institutions such as Paypal US to offer the buying and selling of BTC on an institutional-custody basis. The US presidential election also appears to have added fuel to the Bitcoin price appreciation.
In recent weeks, the asset's price has been racing away, gathering momentum and with its subsequent sharp increase, BTC is today boasting in excess of $33,000, having reached an all-time high. Yet, while there is euphoria, there is just as much concern and fear that this digital asset's meteoric rise is not sustainable and it will come crashing back down to earth. In fairness, the Bitcoin price is due to correct, which is absolutely necessary before any BTC investor can even consider getting on board.
The Future Looks Bright For The Price Of Bitcoin
To understand the potential for the Bitcoin price going exponential, we need to consider the variables. There is only ever going to be 21 million of the digital asset. There is not an infinite supply and most of these cryptocurrency coins have already been mined. So, there already exists a supply/demand scenario.
If you add to that the fact that institutions are now getting in on the act and buying this crypto to offer to their investment clients, what becomes obvious and highly probable, is that there will be a Bitcoin supply squeeze as more and more investment institutions seek to acquire more and more of the digital asset.
Take Greyscale, for example, a publicly traded stock market investment vehicle that offers investors this crypto by way of indirect exposure to BTC investment in their portfolios. It is reported that they are buying up to three times the amount of the digital asset that is currently being mined - and, they are not the only ones either.
Once these types of entities acquire the asset, they will simply not sell it, their digital asset holdings will grow. Since their investors do not have direct access to the crypto asset via their indirect exposure, there is little if any reasons for institutions to off-load it. Instead, the digital asset remains within the institutions' ecosystem, effectively making BTC even more scarce.
As the bull run gathers strength, it is highly anticipated by many that the mass of people flooding into the big Daddy cryptocurrency, can only send its price significantly higher.
The migration to the asset is already in full flow. As increasingly more institutions, investors and the average person start to see this crypto as a safe haven for protecting their wealth from run-away economic policies and inflation. The many trillions of USD that will come flooding into it as a hedge against inflation and against the destruction of wealth, will more than likely contribute to the supply versus demand crisis further.
It is these factors, and, there not being an infinite supply of this digital cryptocurrency, why so many in the cryptocurrencies space believe that the Daddy of crypto will be facing scarcity into the future.
It is also believed by many that the Bitcoin price will be a store of value and as such, its price will go to the moon in the next decade or so. According to a supposedly leaked Citibank report, a future bitcoin rally “could potentially peak in December 2021… Suggesting a move as high as $318,000.”
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