Cryptocurrency pioneer Bitcoin (CCC:BTC-USD) has been flirting with the $60,000 price level again this week, which has investors around the world asking the same old question: Where will BTC-USD go from here? Price targets range from the conservative to the almost ludicrous, but it’s worth remembering current prices around $59,500 once seemed preposterous too.
While this cryptotoken previously surged as high as $61,000 in mid-March, it traded as low as $52,000 on March 25 before climbing up again to trade around $59,500 today. Bitcoin prices briefly broke above $60,000 in trading last night before declining ahead of the market open.
These kinds of price swings might scare potential investors away from this coin, until you remember that BTC-USD gave up $12,000 of value in a single week in February before recouping that loss and more.
While it’s probably safe to assume most bitcoin investors aren’t scared of a little volatility in exchange for growth potential, declining volatility in BTC-USD is part of the reason J.P. Morgan analysts see increased institutional acceptance of the cryptocurrency as a low-correlation asset.
The potential catalyst of a bitcoin exchange traded fund (ETF) is also looming on the horizon, and with it, the potential for a huge influx of retail traders buying into bitcoin via investment vehicles.
Let’s take a look at some bitcoin price predictions:
- First, J.P. Morgan set an undated long-term BTC-USD price target of $130,000. That target is based on an assumption that bitcoin will see its volatility continue to converge with the volatility of gold. This price target was revised downward from a previous target of $146,000, to match a decline in the price per troy ounce of gold.
- BTIG recently initiated coverage of MicroStrategy (NASDAQ:MSTR) with a “buy” rating and set a bitcoin price prediction of $95,000 by the end of 2022. Like J.P. Morgan, BTIG analysts see bitcoin as analogous to gold and sees MSTR stock as a good way for investors to gain exposure.
- Using a stock-to-flow model, Pantera Capital predicts BTC-USD will climb as high as $115,000 by the end of summer 2021.
- Danny Scott, CEO of crypto exchange CoinCorner, recently forecast that bitcoin would climb as high as $83,000 by the end of April, citing the law of averages and historical growth of BTC-USD over the same month in previous years.
- Analyst Peter Brandt, who previously predicted the 2018 correction in BTC-USD, told CoinDesk TV that he sees bitcoin surging to the range of $180,000 to $200,000 by Q3 or Q4 of 2021. Brandt went on to describe investing in BTC-USD as a “binary bet.”
- Finally, a report by Wave Financial has a bitcoin price prediction of $400,000 by the end of 2025. That prediction also uses a stock-to-flow model, which the firm says accurately predicted BTC-USD price movement from March 2019 to February 2021.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.
