Bitcoin (BTC), the largest cryptocurrency in the market, could reach $90,000 in 2021. This is according to Konstantin Anissimov, the Executive Director of CEX.IO. In a recent conversation with UseTheBitcoin, he shared his views on the crypto industry in 2020 and the things we could expect for 2021.
Could Bitcoin Reach $90,000?
Bitcoin has seen impressive gains throughout 2020. The digital currency started the year around $7,200 and it was able to move to over $10,000 by February. However, the expansion of the Coronavirus crisis pushed the market to new lows in more than a year. BTC indeed fell below $4,000 for a short period of time.
Nevertheless, after this movement below $4,000, Bitcoin didn’t stop growing. The virtual currency moved higher during the whole of 2020. BTC was able to surpass $20,000 for the first time since 2017, meaning that 2020 became the year in which the largest cryptocurrency surpassed the all-time high registered three years ago.
Furthermore, during the second half of the year, a large number of companies started buying Bitcoin. MicroStrategy, Ruffer and MassMutual are just some of the firms that acquired Bitcoin in 2020. This shows there is a large institutional interest for the digital currency, and this is a trend that seems to be just starting.
In addition to it, PayPal has also added support to virtual currencies. Users from all over the world can now buy and sell digital assets from their PayPal accounts. This could also increase the demand for BTC and other virtual currencies.
Konstantin Anissimov explains this issue and says that the demand for Bitcoin is higher than ever. The scarcity linked to BTC is causing the price to continue moving forward in 2021.
Mr. Anissimov believes that 2021 is going to be the year when bitcoin will truly thrive and impress. He stated that the price could move to $50,000 by the end of the first quarter of 2021. However, this is not all. He went on saying that the virtual currency could eventually surpass $90,000.
About it, he mentioned:
“It’s not impossible for the price to reach $50,000 by the end of Q1 2021. If this were to happen, I would expect to see further growth and for the BTC to reach $80,000 by the end of Q2 (June 30th, 2021). If this positive trajectory continues in Q4, the price level of $90k would not be an impossibility.”
Additionally, he used the stock-to-flow model to understand Bitcoin’s movements. The S2F model has proven to be extremely accurate when it comes to predicting BTC’s price action.