Bitcoin (CCC:BTC) has simply been on fire in recent weeks. On Wednesday, the leading cryptocurrency set yet another record high, surging above $35,000 for the first time. So with yet another milestone in the rear-view mirror, what comes next? What are the experts calling for in terms of bitcoin price predictions?
To start, what exactly happened? Bitcoin hit a new all-time high on Wednesday morning, clocking in at $35,751 before dipping slightly lower. Importantly, this is just another move in a series of all-time highs that the crypto has set since November 2020. Most recently, investors were cheering that bitcoin crossed $34,000 over the weekend.
Also importantly, there are some pretty clear macroeconomic reasons for the move higher. As we have reported in the past, these all-time highs come on the back of many catalysts. The novel coronavirus threw the economy into chaos, bringing about high unemployment and great uncertainty. In response, many people feared apocalypse-type scenarios. That alone speaks to many crypto bulls, who see the decentralized and digital nature of cryptocurrencies as a plus.
Then, Congress and the Federal Reserve got involved with the CARES Act, bond-buying programs and all sorts of other stimulus measures. While helpful to pocketbooks, crypto bulls see these measures as potential contributors to inflation. As a hedge, it then makes sense to buy bitcoin.
Lastly, investors woke up today expecting a Democratic victory in Georgia. There, Jon Ossoff and Raphael Warnock have been battling it out against incumbent Republican senators. At stake is control of Congress, and ultimately, the potential for a blue wave. With outlets calling the first race in favor of Warnock and Ossoff still in the lead, such a blue wave looks pretty likely.
Does that mean another all-time high is on the way? And what other bitcoin price predictions exist?
2021 Bitcoin Price Predictions and a Blue Wave
Before you can understand bitcoin price predictions for 2021, it is important to know exactly what the Georgia runoff races mean for crypto. Essentially, President-elect Joe Biden has promised to increase federal government spending. As CoinDesk translates, this could lead to inflation and further bond purchases by the Federal Reserve.
With the Ossoff and Warnock races, the conversation is about what level of control Biden will have. How much will Democrats actually be able to achieve? And what sorts of policies are possible in a blue-wave scenario? Beyond cannabis reform, investors are betting on further renewable energy spending and things like $2,000 direct payments. Here you have again a spark of fear regarding inflation.
Looking to the future, bitcoin price predictions look bright. Just yesterday, JPMorgan analysts joined the bandwagon with a price target of $146,000. If Ossoff indeed claims a win, consider it another stepping stone on the way from $35,000 to these moonshot targets.
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.