Bitcoin could make a breakthrough into the mainstream in 2021. A report from Bloomberg takes a very positive look at Bitcoin and believes it will drop below $ 50,000 this year. Why is that?
A lot has changed in Bitcoin and other cryptocurrencies since 2017. Regulation of the sector is more advanced, Bitcoin has passed the $ 20,000 mark, and the market capitalization of the entire crypto market has hit $ 1 trillion several times. As shown in a Bloomberg report, Bloomberg believes that Bitcoin is only at the beginning of its pricing process and still has a lot of potential:
Bitcoin has crossed the Rubicon into the mainstream and still appears to be in the early days of pricing.
In addition, another big difference to the 2017 price rally is that the reputation of Bitcoin has improved. More and more people would see the potential of BTC. According to Bloomberg, the main threats currently are a glitch in the technology or strong price fluctuations due to so-called black swan events. Otherwise, Bloomberg is extremely optimistic about the future of digital gold.
Can the $ 50,000 mark be broken?
Bitcoin acceptance seems to have really picked up in the second half of 2020. Since several institutions announced that they were investing in Bitcoin, the cryptocurrency has soared. More and more institutions are scrambling for digital gold and soon traders worldwide will be able to accept BTC.
Bitcoin halving is also considered to be a factor that accelerated the rapid rise of Bitcoin. In May of this year there was a further reduction in mining rewards, which in the past had always led to further price increases. In 2013, after halving, the BTC rate rose 55 times and in 2017 it increased 17 times.
To the crypto compass magazine
Most of all, Bloomberg believes that maturity and market capitalization are making this price rally different from previous ones. A declining supply and a simultaneous increase in acceptance of BTC make it likely that the $ 50,000 mark will fall this year, according to the analysts.