The cryptocurrency sector is on some volatile level right now, causing investors to panic. Although many uncertainties are associated with the market, research shows that we can expect some good news by the year ending. Hence, cryptocurrency would restore its bullish movement.
Bitcoin, being the top cryptocurrency, has been on the ultimate list of many predictions. As recommendations go out each day, it is expedient to learn from professional investors and yield advice that proves to work. This article is about bitcoin’s price forecast and what to expect at the end of 2021.
Any Good About Bitcoin?
If every coin did not bounce back in the nearest future, the bitcoin price would excuse itself. Contrary to other altcoins, the bitcoin community is composed of large investors and cryptocurrency enthusiasts. Regardless of the market bearish movement, its investors are not willing to back down.
If this question has ever popped up in your mind, expect some good news with cryptocurrency. There have been many predictions on cryptocurrencies prices, but bitcoin has received the highest hope.
What Do We Expect in the Future?
Experts report a higher probability of bitcoin price reaching $100,000 at the end of the year than falling backwards. Although bitcoin has received a more significant hope than other cryptocurrencies, some coins may not lag. Ethereum, for example, may experience some bounce back as well.
Despite the price fall of cryptocurrency since late May, the recent price is higher than what we had in 2018. During this year, the prices were low, while investors had not much choicer than holding their coins. Interestingly, many big companies keep accepting bitcoin as means of payment, giving reasons why cryptocurrency is a promising future. Moreover, the decline of bitcoin prices is related to the economic breakdown from the 2020 pandemic. Cryptocurrency, being a financial platform, is expected to suffer some loss as well. Research shows that many other investment platforms like stock and bond are yet to recover from the loss, while expert investors may earn some gain in the market. Bitcoin price may increase steadily, but a big bang would likely occur at the end of the year.
Why Is Bitcoin Price Unstable?
Having explained the possible outcome of bitcoin price at the end of the year, you may wonder why so much volatility? Why does the 2018 occurrence turn up in 2021, and would it likely change again by the year-end? The volatility rate of cryptocurrency is because of many factors, but the market cap is a significant influencer. The market supply and demand ratio would determine the coin’s price at a particular moment. A tool known as Bitcoin Volatile Index is used to measure the volatility of the cryptocurrency.
Another significant factor contributing to Bitcoin’s volatility is unsupportive remarks from high authorities or governments. Since bitcoin is a decentralized financial platform, comments from regulatory bodies scare investors away. Sometimes, people print headings that suggest cryptocurrency may not last as supposed, causing investors to panic and sell their assets. Since no one is in charge of the market trend, investors need to understand that no one has the power to control coin flow.
According to a report on the 10th of July 2021, many people’s cryptocurrency hikes its price due to the increased demand rather than supply.
“High fees tend to correlate, roughly, with high activity. When everyone raced to get into Bitcoin, fees rose because they outpaced the supply of miners. And when investors rushed for the exit, they rose even more.”
Hence, a higher demand results in a higher bitcoin price. Since bitcoin production requires high energy consumption, miners require extra hours to validate bitcoin transactions per second. Although a reward is given to successful miners, bitcoin, being a prevalent currency, has a structure concerning its supply frequency.
Research shows that some authorities are against the cryptocurrency trend and would not miss any opportunity to bring it down. Cryptocurrency becoming a regulated financial institution as fiat currency remains a trial approach.
If you are new to cryptocurrency, this article recommends you buy established coins. A currency with a large community base has a surety backup during market circumstances. Presently, many investors are scared of losing into the market and sell off their coins at a low bitcoin price. This period is an excellent time to get on board, as you would receive cheap offers. One thing about cryptocurrency prices is, it never stays low for a long time. Moreover, trading and investment require some patience and consistency. Having this quality will get you through the market successfully.