Early Price Predictions for Bitcoin This Year

Bitcoin has begun 2021 on a tear once more, with the asset's price jumping significantly over the past few weeks. By jumping from the mid-$20,000 region to knocking on the door of $60,000, Bitcoin has shown that it is here to stay and won't just be a fad.

Early Price Predictions for Bitcoin This Year

With so much anticipation, it is a normal thing for different parties to bring their price predictions and speak about what they believe Bitcoin's performance will be heading into the year. Some of these predictions have been more outrageous, while some have relatively been on the more reasonable side.

Here, we look at some of these predictions and how they might affect Bitcoin's trajectory going into the year.

The Moderate Views

Bobby Lee's $250K Call

Several people have come up with some relatively modest views about Bitcoin's price increase, showing a sense that some clarity has entered into the industry. Bobby Lee, a crypto trader and industry expert, predicted on Twitter that the leading cryptocurrency could see its price top out between $75,000 and $315,000.

Lee's prediction is a relatively old one. In December 2018, he claimed that the next Bitcoin bull run would start in late 2020 and take off in early 2021. From there, the asset's price will peak in December 2021. Speaking with Cointelegraph, Lee said:

"Back [in 2018], Bitcoin was under $10,000 — no one was talking about it. "People who weren't drinking the Kool-Aid were thinking I was crazy to even make a prediction two years out that's so specific."

While Lee claimed in 2018 that Bitcoin would hit $333,000 by December 2021, he explained that the asset should still comfortably hit $200,000 to $250,000 before the turn of the year once more.

Stock-to-Flow and Pompliano

The stock-to-flow (S2F) model is one of the most popular and accurate Bitcoin prediction calls available. Created by notable analyst PlanB, the model forecasts Bitcoin's long-term price trend by weighing the asset's amount in existence (stock) and the amount of newly-minted coins coming into the market (flow).

So far, the S2F model has shown incredible accuracy. It projected that Bitcoin would close on a high in February, hitting a price of $36851. Beyond hitting that price, Bitcoin ended up closing the month at 45,359.

For now, the S2F model predicts that Bitcoin will hit a value of $288,000 before the end of the year. With the leading cryptocurrency trading just above the $56,000 price peg, it would need to rise by an astronomical 400 percent before the end of the year for that to happen.

Other notable analysts and experts who have shared similar moderate views include Anthony "Pomp" Pompliano and Dan Morehead of Morgan Creek Digital and Pantera Capital, respectively. Both men have refrained from forecasting $200,000 for the year, but they remain highly bullish and believe that Bitcoin will end the year over $100,000. Considering that this is a 100 percent gain over Bitcoin's current price, such a jump will still be impressive.

In an interview, Pompliano explained that there is still a significant demand for Bitcoin across the world. Even if the asset sees more supply, such a phenomenon would only lead to an aggressive buying spree and force a considerable price increase.

Much Higher Gains Incoming

An interesting element of cryptocurrencies is that prices being seen as moderate today were considered unimaginable just one year ago. Despite that, some investors and believers are setting their eyes on even wilder numbers. Some of them include the following:

Citibank's Major Leap

Late last year, a Twitter commentator shared an alleged investor note from Citibank, which predicted that Bitcoin would hit a potential high of $318,000 sometime in December of this year.

As the note reported, Tom Fitzpatrick, Citibank's managing director, examined Bitcoin's long-term price and history with seemingly unimaginable rallies. The asset has notably had three bullish periods - a ten-month run between 20210 and 2011, another run from 2011 to 2013, and the run spanning 2015 to 2017.

While a period of correction has followed, the historical analysis seems to place the market in the middle of yet another bill run that should run towards the end of next year. With the time frame and Bitcoin's price analyses over the past bull runs, Fitzpatrick reported that the asset could be sitting on a price peg of $318,000 by the end of the year.

Saylor Sees No End In Sight

While everyone seems to have a price peg, Michael Saylor, the chief executive of business intelligence firm MicroStrategy, believes that Bitcoin could even go much higher.

MicroStrategy is famous for leading the flood of institutional investors who trooped into the Bitcoin market last year and purchased billions of dollars worth of the asset. The company is now sitting on a Bitcoin stash that many believe is worth over $5 billion, and it has continued to make purchases deep into 2021.

In an interview with MMCrypto, Saylor predicted a Bitcoin price peg of $15 million in the long term. According to him, the leading cryptocurrency has continued to eat into the money supply and offer incredible gains for investors.

"In theory, all monetary energy that's simply looking for a store of value/safe haven index should presumably drain out of real estate, cash, stocks, and bonds into the Bitcoin network," the investor said.

Saylor's prediction might seem a little intense, but this is Bitcoin. If the asset has shown anything, it's that nothing is overly impossible.

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