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  • Thursday, January, 2021| Today's Market | Current Time: 09:03:04
  • Since its inception in 2009, Bitcoin has had a volatile trading history. The most popular digital currency has seen some major rallies and crashes in its fairly short journey. There have been a lot of price predictions for Bitcoins by the industry experts. Where several predictions turned out to be false and went to oblivion, some of them came true.

    Because Bitcoin has proved its true potential in the cryptosphere, speculations from the industry experts suggest that Bitcoin’s long term value could reach over $100,000 to as much as one $1 million in the near future.

    That’s the story until now!

    Today’s buzzing question is – Where is Bitcoin headed in 2021?

    To answer this, let me take you back in time a little.

    The History of Bitcoin Price Action

    The journey of Bitcoin began worthless with a value far less than even a penny. Years later, it started trading at over $1,000 and became a serious financial asset with great potential.

    In 2017, the potential of Bitcoin took the world by storm after reaching its all-time high of $20,000, which caused retail investors to rush into buying the digital asset.

    But in 2018, there was a major Bitcoin trend change, and the price started declining to as much as 80%. It eventually bottomed to $3,000, leaving investors to wonder ‘If BTC will again go up in value?’

    At the advent of 2019, Bitcoin growth made a comeback once again, and a powerful rally took BTC price back between $10,000 and $14,000, before falling back down to $6,500.

    As soon as 2020 hit, Bitcoin took off from its lows and then the global pandemic caused the asset valuations to plummet across all financial markets. It dropped from $10,000 to $3,800.

    Today Bitcoin is trading at $11,490 per BTC. This Bitcoin price in INR costs about 8,52,800 Indian Rupee. Because Bitcoin is volatile in nature, this price could double tomorrow or set a new all-time high the next week. You can check Bitcoin live price in India at WazirX exchange.

    Image Source: CoinMarketCap

    As can be seen, Bitcoin has been bouncing in between $8,800 and $11,000 for the last 3 months without a clear direction.

    It is unclear where the Bitcoin price will trade in 2021.

    Will Bitcoin Rise in 2021?

    3 macro factors suggest that Bitcoin is getting ready for a new uptrend by 2021.

    Rise in Investor Confidence

    As indicated by the chief technical officer of Glassnode, Rafael Schultze-Kraft, various HODLing data indicates a significant rise in investor confidence.

    He expressed that Bitcoin’s supply has not moved for over a year and has hit an all-time high of up to 61%. Also, 44% of Bitcoin supply has not moved in 2 years, and almost 30% has not moved in 3 years.

    It simply implies that investors are not willing to move their funds despite having a Bitcoin exchange app in their smartphones.

    Institutions Are Confident about Bitcoin’s Long Term Trend

    The assets under management (AUM) of the Grayscale Bitcoin Trust has risen from $1.5 billion to $3.5 billion. This significant increase in AUM suggests that institutional investors are consistently investing in Bitcoin.

    As indicated by Messari researcher Ryan Watkins, reports of Grayscale buying only 31% of newly mined Bitcoin is inflated since bitcoin’s recent halving. However, this is still a substantially high number.

    The Optimistic S2F Model

    According to S2F Model, Bitcoin is set to hit $100,000 between the end of this year and beyond. They say that Bitcoin’s technical structure has ‘jumps’ every 4 years approximately, and the last one was in 2017. Thus, it might hit the number in the next year. See the tweet by PlanB, the creator of the model.

    Final Thoughts

    With the above key fundamental factors, it is evident that rising investor’s confidence, optimistic S2F Model and institutional adoption raise the probability of Bitcoin’s extended uptrend in 2021.