Crypto analysts make varying predictions as BTC continues surging
Bitcoin (BTC), the leading cryptocurrency in terms of market capitalization recently broke out on a bullish rally that is gradually pushing it towards its all-time high. At the time of writing, 11:40 AM UTC, the top cryptocurrency is changing hands at $18,503.41, with a volume of $43,836,951,794 over the past 24 hours. This trading activity has pushed BTC’s market cap past $340 billion. As a result of the coin’s strong performance, multiple crypto analysts have come out to make predictions on how far up this rally will push BTC’s price.
According to Thomas Fitzpatrick, global head of Citibank’s CitiFXTechnicals market insight product, BTC might surpass $318,000 before December 2021. Fitzpatrick made this prediction in a report intended for the bank’s institutional investors, noting that BTC’s entire existence is characterized by significant price swings. He added that this volatility is vital to sustaining a long-term trend.
He added that the COVID-19 pandemic and the urge for central banks to introduce quantitative measures are among the factors that might fuel BTC’s explosive growth.
Fitzpatrick went on to highlight the 2010-2011 exponential move in BTC’s price, noting that it is very similar to the 1970s gold market. Reportedly, gold had gone 50 years trading around $20 to $35 before breaking out after the Nixon administration made a change in fiscal policy in 1971.
Tim Draper sticks to his six-figure prediction
Apart from Thomas Fitzpatrick, Tim Draper, a renowned venture capitalist, doubled down on this six-figure BTC prediction. In 2018, Draper forecasted that BTC would make a meteoric rise to reach $250,000 by the end of 2022 or early 2023. He unveiled that he still believes BTC can surpass this level during the Virtual Blockchain Week conference.
“That's my prediction. Sticking with it. I'm very confident that that is going to happen. That’s happening. It's kind of funny.”
According to him, the US government’s huge stimulus package will debase the value of the dollar, sending people the crypto way. When this happens, Draper believes there will be massive BTC adoption across the globe. He added that BTC’s low transaction cost will attract retailers, seeing as they won’t have to pay 2.5-4% every time they make a transaction.
JP Morgan CEO takes back his derogatory statement regarding BTC being a fraud
BTC’s recent development in its price has also seen JP Morgan Chase, a leading US bank, admits that it was wrong to call the coin a fraud. The bank’s CEO, Jamie Dimon, made some slanderous statements regarding BTC a few months before the coin hit its all-time high and plunged sharply soon afterwards. In an interview, Dimon noted that BTC is not real and that it is worse than the Tulip Bulbs mania. He added that BTC would become valueless in the long run, causing the deaths of many investors.
However, the coin’s resilience has seen the bank’s CEO take back his derogatory statements, saying,
“The blockchain itself will be critical to letting people move money around the world cheaper. We will always support blockchain technology.”
While Dimon still showed his distaste for BTC, he appreciated the fact that some smart individuals, such as Paul Tudor Jones, are purchasing BTC with the belief that it would outperform US treasury bonds, the US Dollar, and gold. He went on to note that while he thinks there are smart for buying into BTC, the coin is not his cup of tea.
Raoul Pal predicts BTC will hit $250K
Raoul Pal, the founder, and CEO of Global Macro Investor and Real Vision, also came out to give his BTC prediction. According to him, the leading cryptocurrency could potentially hit $150,000 by November 2021. He made this forecast during an interview, where he noted the $150,000 prediction is the most conservative scenario. He believes that the significant flow of institutional money into the crypto space could see BTC surge past $250,000 before the end of next year.
Pal believes that unlike the 2017 crypto bubble, BTC’s current rally will be fueled by institutions, making it more sustainable. He added that governments will have to release monetary stimulus to boost their economies after the COVID-19 pandemic, a move that will devalue fiats significantly. As a result of fiat devaluation, Pal believes masses will onboard the crypto bandwagon, pushing BTC’s price over the roof.
He went on to tout BTC’s growth rate, noting,
"It's life-changing. No other asset has an upside of 5x, 10x, 20x in a short space of time.”