Last year was probably the most eventful for the crypto industry since cryptocurrencies have been invented. Anyways, it is already in the past. Now we all wonder what 2021 will be like. To shed some light on it, let’s look at the opinions and predictions of crypto industry experts.
Five focal points
- Governmental banks issuing digital currencies.
Russia, China, and other countries are already thinking about digitalizing their national currencies. Many are already taking steps in that direction. For example, the digital Russian ruble is expected to be launched by the end of 2021.
- Bitcoin growth will be capped
The rise in its exchange rate can’t last forever. But thanks to strong support from institutional investors, bitcoin is unlikely to drastically reduce its price. It’s rather consolidate somewhere around the $30,000 level.
- Blockchain moving beyond cryptocurrencies
Blockchain technology is already adopted by industries like logistics, healthcare, etc. But in the near future its adoption will expand even more.
- Stablecoin dominance
This is a comfortable entry point into the crypto industry for many people, a kind of bridge between the traditional financial system and cryptocurrencies. Today, billions of dollars are locked up in stablecoins, and the trend is only growing.
- Increased tax controls
Of course, the governments don’t enjoy the fact that huge amounts of money are rotating without any control, bringing no profit to the budget. So regulation will be enhanced, and penalties for non-compliance will become more severe.
Overall, 2021 is expected to be a breakthrough, like 2020 has been in many ways. A variety of new technologies and projects await us.
Let’s see what the experts think.
Experts Speak Out
Investment banking giant JPMorgan Chase & Co predicts that BTC could rise to $146,000. According to them, we are now just at the beginning of a big rally. However, this is a long-term forecast, and the price is likely to be volatile in 2021.
A Citibank report leaked in November states that the value of the main cryptocurrency is expected to rise to $300,000 already this year. Bitcoin has been called the gold of the 21st century. Other major cryptocurrencies follow it, and in recent weeks they have also shown a 20–45% rise.
According to a Finder.com poll, 52% of respondents believe cryptocurrencies will crash in 2021. Entrepreneur Jimmy Song wrote, “It happened in 2017, 2013 (twice) and 2011. I see no reason why it should be any different now.”
Brothers Tyler and Cameron Winklevoss, businessmen and crypto enthusiasts, expect BTC to rise to $500,000, albeit not exactly in 2021. They say that millennials choose cryptocurrencies as a safe haven for their assets.
Analyst and blogger Anton Valman remains skeptical. He considers it absurd that bitcoin is worth anything at all, and is convinced that one day the hype will end, and the rate of all cryptocurrencies will fall to zero.
Mike McGlone from Bloomberg Intelligence claims that $50,000 is the best rate, and this milestone will lead to a total market capitalization of $1 billion.
Ethereum Prospects
While Bitcoin is firing up, let’s not overlook Ethereum. The cryptocurrency №2 is now in the transition to Proof-of-Stake consensus, and investor excitement around it is only growing. The main forecasts for this cryptocurrency are as follows:
- The above mentioned Mike McGlone from Bloomberg expects it to hold in the $500–700 range.
- DigitalCoinPrice.com calculated a possible value of $1493.
- WalletInvestor.com named an approximate level of $872 based on its estimates.
- Blockfyre co-founder Simon Dedick has no doubt that ETH will be worth above $800 during 2021.
- James Todaro from Blocktown surpassed everyone in his expectations. In his opinion, ether can grow up to $9000 this year.
What will actually happen? Only time can tell. But it is absolutely clear that the crypto industry has set up shop in the world, and is gaining more and more supporters.
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