Many analysts believe that the price of bitcoin will reach $ 100,000 by the end of 2021, but what is the probability of this happening and what factors can accompany bitcoin to reach $ 100,000.
to the Report Crypto Potito, the price of Bitcoin has risen more than 60 percent since the beginning of this year, however, current prices are still 30 percent lower than the historical peak in April. With just a few more months to go until the end of 2021, forecasts for the price of bitcoin are growing every day.
According to the S2F accumulation model, one of the most popular bitcoin price forecasting models, the price of this digital currency will reach three digits by the end of December. If Bitcoin is to achieve such an unimaginable goal, it must more than double in price in the remaining months of 2021.
Plan B, the creator of the flow accumulation model, cites reasons that could act as a stimulus for a significant jump in the price of bitcoin in the coming months. In the following, we will examine these reasons.
Licensing of funds traded on the Bitcoin exchange
Whether or not the US Securities and Exchange Commission will eventually authorize Bitcoin exchange-traded funds (ETFs) has been a hotly debated issue in the digital currency space over the past year. This issue became more and more important after the listing of midwifery funds on the Bitcoin exchange in Brazil and Canada.
The US Securities and Exchange Commission has received many requests since 2016 to offer a tradable fund on the Bitcoin exchange. All of these applications were rejected until a year ago, however, the approach of the Exchange Commission has changed since the beginning of 2021, and the decision to grant licenses to Bitcoin exchanges is constantly delayed. The remarks of Gary Gensler, chairman of the US Securities and Exchange Commission, and the claims of experts that Bitcoin exchange-traded funds will soon be licensed have led some to speculate that licenses for these trading products will be issued by the end of this year. will be.
If this happens, bitcoin will gain legal legitimacy among investors in traditional financial markets and large corporations, and individuals and legal entities can invest in bitcoin through exchange-traded funds that have also been approved by lawmakers. The consequences of this could eventually lead to a significant increase in the price of bitcoin.
Widespread acceptance of digital currencies
Acceptance has been another important issue this year and last year for digital currencies. Plan B refers to the legalization of bitcoin in El Salvador, a country that made history by accepting bitcoin as a legal currency in September and registered its name as the first country to accept bitcoin.
According to El Salvador President Nayib Bukele, the use of bitcoin in the country is growing rapidly. Plan B. has said that if another country like El Salvador starts accepting bitcoins, the price of this digital currency will increase.
If a country does not start accepting bitcoins, there are prominent personalities who can do the same. We have seen in the past how the comments of figures like Elon Musk have affected the price of bitcoin. So if a new Michael Saylor enters the market, bitcoin can experience faster price growth.
This acceptance could also come from superpowers such as Apple, Amazon, Google and Microsoft. Recently, the fake news of the acceptance of Litecoin by the Walmart chain of stores caused the price of Bitcoin to increase by several thousand dollars.
Although it soon became clear that the news was fake and the price of bitcoin fell rapidly, it is safe to imagine what would happen if one of the world’s largest companies joined the digital currency community.
China returns to the days before the ban on digital currencies
This could be the most unlikely scenario for the future of the digital currency space. China has been opposed to this field almost since the advent of digital currencies. The country’s conflicting policies entered a new phase this year with the banning of mining, trading and other digital currency-related activities.
Chinese miners were forced to migrate to other countries, and this incident temporarily had a detrimental effect on the Bitcoin network. Many digital currency exchanges have also recently been forced to stop providing services to their Chinese users.
The world’s most populous country, which has no interest in decentralized platforms and popular Internet networks, is launching its own national digital currency. The country’s national digital currency, or digital yuan, operates quite differently from bitcoin and allows the government to control all transactions.
As a result, China’s chances of returning to the days before the ban on digital currencies are slim. But the market may not need that. The United States, the world’s largest country by GDP, has said it does not want to follow China’s lead and will not ban digital currencies; An event that has had a positive impact on the digital currency market to this day.
Take a look at the past
Bitcoin is now trading below $ 50,000, and if it reaches $ 100,000 by the end of December, it has grown by more than 100%. With only three months left until the end of 2021, a 100 percent increase in labor prices seems difficult.
However, as is clear from the past, Bitcoin has the potential to make such leaps. Exactly one year ago, each bitcoin traded at $ 10,500, but continued to rise sharply in the market and the price reached $ 29,000 by the end of the year, a growth of 175% in three months.