Despite the pandemic and the amount of global turmoil in 2020, Bitcoin enjoyed an extremely strong rally.
The cryptocurrency ended 2020 up by over 300 percent, making it the best-performing institutional asset aside from Tesla’s shares, TSLA.
This comes in spite of Bitcoin dropping to $3,500 in the middle of March, which made many doubt the long-term survivability of the cryptocurrency.
Still, most analysts think that BTC will perform extremely well over 2021. Here’s a list of what top crypto analysts and fund managers think will happen to the leading cryptocurrency in the coming 12 months.
Thomas Lee, a co-founder of Fundstrat Global Advisors, says that Bitcoin could triple in 2021. Assuming that he is using a baseline price of $30,000, this means that BTC could move to $90,000 and beyond in the coming year.
“I think that 2021 will be a lot like 2017, which means that bitcoin will do even better in 2021 than it did in 2020. So, something above 300%.”
He thinks that Bitcoin will largely be pushed higher by the dropping value of the U.S. dollar relative to other foreign currencies:
“The dollar’s weakness will make people think: how do you sort of keep a unit of sound money. A lot of these people thought gold would be that store. I think it still has a reasonable basis for someone to be long on gold. But, I think for younger folk, and those who are from the digital generation, Bitcoin is the digital asset that they want to hold.”
The investor added that there is a large contingent of younger investors that may seek Bitcoin over gold.
This is a sentiment that has been shared across Wall Street and is actually why some prominent investors say that they are buying BTC over the precious metal.
Kelvin Koh, the co-founder of Spartan Group and a former Goldman Sachs partner, thinks that Bitcoin will surpass $100,000 in 2021.
The venture capitalist and investment manager predicted at the start of 2020 that Bitcoin would reach $40,000 last year. His prediction proved to be one of the more accurate in the crypto space.
Bloomberg’s Michael McGlone
Bloomberg analyst Michael McGlone wrote in his December monthly report that Bitcoin could hit $50,000 in 2021, citing the macroeconomic trends that are set to drive this market even higher.
He added that the supply-demand dynamics of the crypto market are skewed bullish with the amount of capital boosting Bitcoin via futures and via products like the Grayscale Bitcoin Trust.
Former Goldman Sachs partner Mike Novogratz says that Bitcoin could hit $65,000 in the near future.
While he did not attach a date to this prediction, it can be assumed that he thinks the cryptocurrency will reach $65,000 in the coming year or so.