Despite the pandemic and numerous global turbulences in 2020, Bitcoin was able to increase its value extremely.
The cryptocurrency ended 2020 with a plus of more than 300 percent, making it the best performing institutional asset alongside the shares of Tesla, TSLA
And that despite the fact that Bitcoin fell to $ 3,500 in mid-March – which made many doubt the long-term viability of the cryptocurrency.
Still, most analysts believe that BTC will do extremely well in 2021. Here is a list of what top crypto analysts and fund managers think of what will happen to the leading cryptocurrency in the next 12 months.
Thomas Lee, co-founder of Fundstrat Global Advisors, says Bitcoin could triple in 2021. Assuming he’s using a base price of $ 30,000, it means that BTC could climb to $ 90,000 and beyond in the coming year.
“I think 2021 will be similar to 2017, which means that Bitcoin will do even better in 2021 than it did in 2020. So a little over 300%.”
He believes that Bitcoin will be largely driven up by the falling value of the US dollar compared to other foreign currencies:
“The weakness of the dollar will make people think about how to get a unit of solid money. Many of these people thought that gold would be that store. I think there is still a reasonable base for someone who has bet on gold. But I think for younger people and those of the digital generation, Bitcoin is the digital asset they want to hold. ”
The investor adds that there is a large contingent of younger investors who would prefer Bitcoin to gold.
That sentiment is shared across Wall Street – and it’s actually why some prominent investors say they’re buying BTC instead of the precious metal.
Kelvin Koh, co-founder of the Spartan Group and former partner of Goldman Sachs, believes Bitcoin will cross the $ 100,000 mark in 2021.
The venture capitalist and investment manager predicted in early 2020 that Bitcoin would hit $ 40,000 last year. His prediction proved to be one of the more accurate in the crypto space.
Bloomberg analyst Michael McGlone writes in his December monthly report that Bitcoin could reach $ 50,000 in 2021, pointing to the macroeconomic trends that will drive the market even higher.
He adds that the supply-demand dynamics of the crypto market are bullish with the amount of capital Bitcoin is fueling through futures and through products like the Grayscale Bitcoin Trust.