Another day, another all-time high for cryptocurrency bulls. Bitcoin (CCC:BTC) crossed the $20,000 mark yesterday for the first time ever. Then, it kept climbing higher. Although prices have since turned around, the crypto peaked above $23,000. So what do you need to know? And what new bitcoin price predictions are making the rounds?
Well, this is a story of excitement and bullishness for bitcoin and its cryptocurrency peers. Yesterday we wrote that bitcoin set a new all-time high above $20,800. That was exciting enough, especially as bitcoin had previously set a record high at the end of November. After a three-year hiatus, it seemed that everything was going right for the iconic crypto.
Then, the sparkle around bitcoin got even brighter. Just like that, bitcoin prices kept climbing, ultimately setting another all-time high at $23,770.85. That puts its year-to-date gains higher than 200%.
So why does this all really matter? Well, as we wrote yesterday, the series of all-time highs comes along with strong macroeconomic support for the cryptocurrency space. Fears of inflation, Covid-19 stimulus moves from Congress and the Federal Reserve, and uncertainty about President-elect Joe Biden have supported bitcoin prices. And importantly, this macro picture has also boosted bitcoin price predictions. Since November, analysts have offered up targets near $50,000 and $100,000. Citibank analyst Tom Fitzpatrick even caused a buzz when he set a 2021 price target of $318,000.
However, particularly as lawmakers near a compromise on a second novel coronavirus stimulus package, some of these bitcoin price predictions make sense. So with yet another all-time high on the books, what else do investors need to know?
Bitcoin Price Predictions and an All-Time High
In the wake of this impressive feat, there are two sides of the story for crypto bulls.
Importantly, the first comes from people who support the long-term story but are urging caution. One of these voices is Coinbase CEO Brian Armstrong. Although he reps the leading cryptocurrency exchange, he also said that it was important for new investors to understand the risks. Citing the now-obvious potential for massive gains, he also reminded new investors of the volatility in the crypto world and in the potential losses. Investors should note that his message comes as a series of all-time highs draws new money and new institutional support to the space.
Then, investors have the words of Guggenheim Partners CIO Scott Minerd. Without beating around the bush, Minerd told TV hosts last night that bitcoin was heading for $400,000. Topping even the moonshot price target from Fitzpatrick, this has certainly captivated investors. And where do these sky-high bitcoin price predictions even come from? According to Minerd, the justification for these targets is the scarcity of bitcoin and its relative value to gold.
No matter whether you resonate more with the cautionary tone of Armstrong or the all-in messaging of Minerd, it is clear bitcoin is going places. Keep the crypto and these bitcoin price predictions on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.