Novogratz expects that the bitcoin deficit would facilitate its price growth in the coming years, since the bitcoin holders will start to treat them as a store of value rather than a purely speculative asset.
“People buy bitcoins because the general number of coins cannot exceed 21 million. People believe that this is a store of value. It is a social structure and you cannot change it ”, – said Novogratz.
BTC / USD forecast No. 2: USD 100,000 from the S2F founder
According to the founder of the popular bitcoin forecasting model Stock-to-Flow (S2F), which uses the PlanB name in Twitter, the baseline cryptocurrency will reach the level of USD 100,000 by December 2021.
The S2F model calculates the expected bitcoin price in 2021 with consideration of reduction of its supply and growth of demand. Since the bitcoin mining benefit reduces twice every four years, supply gradually goes down. Taking into account that the world inflation spreads, it theoretically may increase demand on bitcoins and cause a sharp splash of the bitcoin price.
The bitcoin price fluctuated at the level of USD 640 during the second halving in July 2016. Seventeen months later, the bitcoin price reached the record-breaking level of USD 20,000. If the situation repeats, the bitcoin price could reach USD 100,000-288,000 by December 2021.
BTC / USD forecast No. 3: USD 170,000 from a Bloomberg strategic analyst
Mike McGlone, an analyst from Bloomberg, shared one more optimistic opinion with respect to the bitcoin prices in 2021. He believes that the cryptocurrency hasn’t yet completed its upward impulse and he sets the level of USD 170,000 as the target BTC price for the year 2022.
“If you look at the past results, which potentially may point to the future, a zero could be added to the price in a year or two. Bitcoin completed 2019 at the level of USD 7,000 and now it is traded above USD 17,000, having added the figure of one in the beginning of the price value; perhaps, it might add zero in the end of the price value, which would be USD 170,000 ”, – said McGlone.
BTC / USD forecast No. 4: USD 318,000 from a Citibank analyst
However, the most optimistic opinion was expressed by Tom Fitzpatrick, a Citibank analyst. He believes that bitcoin would skyrocket in 2021 reaching the target of USD 318,000.
Why is the Citibank Senior Analyst so optimistic?
He explains his forecast with the bitcoin historical chart development. Remembering about the bitcoin price exponential growth in 2010 and 2011, Fitzpatrick expects that the similar movement would gain momentum in 2021.
He also mentions that the FRS interference and nearly zero interest rates, introduced for minimization of the coronavirus pandemic impact, caused the inflation surge. That is why people consider cryptocurrencies as hedging against currency devaluation and a safe asset.