Why Is Bitcoin Likely to Reach $100,000 by the End of 2021?
Despite its famous volatility, a number of financial analysts believe that Bitcoin will reach an all-time peak in the fourth quarter of this year.
These days Bitcoin is as valuable as gold and thanks to that fact, thousands of people are looking to invest in it and make a profit. Trading with this cryptocurrency has become a very popular occupation. Not only that but there are many stories of how Bitcoin changed the lives of many people and even managed to turn some traders into overnight millionaires.
Recently, the number of traders that are registering to Bitcoin’s network has been increasing a lot. The main reason for that is because experts believe that Bitcoin has the potential to rise even more and possibly reach $100,000 by the end of 2021.
That is exactly the topic that we wanted to discuss in this article. We’ll be taking a look at the two main reasons which lead experts to believe this claim. But, before we dive into the details, let’s check Bitcoin’s current state.
At the moment, Bitcoin’s price fluctuates around $40,000. Back in April 2021, it peaked at $63,000 but dropped in value shortly after. Even though Bitcoin was stable for the bigger part of 2021, the sudden drop in value is what attracted traders as they see this as a golden opportunity to invest in Bitcoin.
They use trading sites to sell their Bitcoins after they earn them. Trading sites have become extremely popular in the recent period due to the fact that they provide traders with fantastic services, one of which is an AI system that is capable of determining the future price of Bitcoin.
It collects all the data about his cryptocurrency, analyses it, and then shares the results with traders. Thanks to the AI system, traders can battle the volatility rate and maximise their revenue. Reputable trading sites use this type of software and have a very high profitability rate.
Apart from making a profit with Bitcoin, this cryptocurrency is currently accepted as a payment method at many global brands. The list includes the likes of Starbucks, Microsoft, Wikipedia, AT&T, Overstock, and Home Depot.
Now that we’ve cleared up everything there is to know about Bitcoin’s current state, let’s check out the two main reasons behind Bitcoin’s potential rise in value.
The Institutional Interest
The first reason why Bitcoin is expected to rise in value is the massive institutional interest. We mentioned that there are tons of global brands that accept it as a payment method. If you are wondering how that influences Bitcoin’s price, it is because they are contributing towards its stability. The more stable Bitcoin is, the higher its value will be.
Speaking on that note, it is worth noting that Bitcoin’s price rose drastically after the famous Tesla investment. Not only did Tesla manage to spike the value of Bitcoin by more than $4,000 in a few days, but it also motivated many other companies to invest and integrate Bitcoin into their systems.
Halving Events Lead to It
The second reason as to why it is believed that Bitcoin will rise is halving events. History showed us that Bitcoin always peaks a year and a half after halving events end. The last halving event was held in May 2020.
With that logic in mind, a year and a half will pass in the fourth quarter of 2021. While experts do not have an accurate date of when Bitcoin’s value will spike, it is expected for it to be around November.
These two reasons are extremely reliable and backed by facts, which is why many traders believe them and are already looking to invest and possibly make a profit.