Bitcoin’s bullish run to last until H2, 2021
- 18th December 2020
- Posted by: Hakeem
- Category: Crypto
The BTC bull run is set to last until the second half of 2021, according to the majority of the panelists (58%) featured in Finder’s Bitcoin Price Predictions report.
In a report exclusively sent to Bigwig FX, the panel of 47 experts and fintech leaders expect BTC to more than double by the end of next year to $51,951 per BTC.
- 46% say now is a good time to buy Bitcoin,
- 43% hold, and
- 11% sell.
Bitcoin developer, Jimmy Song, who believes the bull run will last until the final quarter of 2021, says both supply and demand is driving the rally.
- “The halving caused the supply to decrease even if demand stayed the same, that would explain why the price went up. Demand has gone up because of the insane money printing, so the combination has led to a pretty nice price-rise. I expect the supply shock to continue in 2021.”
However, just over half of the panel (52%) think Bitcoin will see a sharp (50% or more) drop from its peak valuation at the end of this bull run.
- 36% say increased regulation could cause the rally to come to a halt and over a quarter (27%) said a share market drop would hurt Bitcoin’s price, many suggesting this would cause investors to sell cryptocurrency in favour of cheaper shares.
- The panel accurately predicted BTC would crack USD$20,000 by the end of the year, with an average December 31 forecast of USD$20,102.
The leading drivers behind the 2020 rally include large-scale public investments from firms like MicroStrategy and Square (cited by 72% of the panel), Paypal’s announcement that it will allow customers to hold Bitcoin (72%), large scale quantitative easing by central banks (66%), and a general sentiment shift and increased acceptance of the Bitcoin narrative (66%).
The rally is being driven mostly by institutional investors according to 72% of the panel, with 17% arguing it’s been driven mostly by Bitcoin ‘whales’ and 11% retail investors.
Panxora Crypto Hedge Fund Managing Partner, Gavin Smith, who predicted that BTC will end the year at US$20,000, revealed Bitcoin will increasingly be used as a hedge against fiat currency by both institutional and retail investors.
- “Bitcoin is now being used as a hedge against fiat money printing by early adopters in both retail and institutional sectors. This trend is expected to continue. We don’t believe this will be an uninterrupted move higher, we expect the market will exhibit high volatility to both the upside and downside but with a clear bias to higher levels.”
Finder co-founder Fred Schebesta gave an end of year forecast of $17,500, saying he expects the cryptocurrency market to cool off.
- “The Bitcoin (and broader cryptocurrency) market seems to have entered a period of cool-down. While there doesn’t seem to be any slowing of institutional adoption that drives longer-term interest, it does feel reasonable to see it trade sideways or down into the first few months of the new year. If it does, it provides a stronger foundation for the period of growth many hope to see come into play.”