Kraken – Bitcoin Could Hit $100,000 Before the End of 2021
Bitcoin, Ethereum, and rest of the cryptocurrencies have received many price forecasts from both fans and skeptics since their inception. Kraken, one of the most popular cryptocurrency exchange platforms in terms of daily traded volume, thinks Bitcoin (BTC) may reach $100,000 before the end of 2021.
Kraken emphasizes BTC’s price rise in Q4 of every year, quoting statistics from prior years in its newly released report. According to the exchange, this time period has always garnered “an average and median return of +119% and +58 percent, respectively.”
Based on this tendency, BTC may end the year around $100,000 in the event of average returns. “At BTC’s quarter-end closing price of $43,800, a +119 percent return in Q4 2021 would place BTC at approximately $96,000,” according to Kraken.
Yet, if median returns prevail, Bitcoin may end 2021 at $70,000 or more. According to our statistics, the leading cryptocurrency has reached highs not seen since April. While writing this article, BTC was trading at $56,502, with a market value of $1 trillion.
Significantly, Kraken’s optimistic forecast nearly exactly matches that of renowned anonymous cryptocurrency researcher PlanB, who believes Bitcoin will be worth $135K by December. The views are also supported by a JPMorgan study, which shows increasing investor interest in the crypto currency as a hedge against inflation.
Cryptocurrency doubters, meanwhile, such as famous hedge fund administrator Michael Burry and gold bug Peter Schiff, continue to believe that cryptocurrencies are simply another boom that will eventually burst. Other experts, like as economist Steve Hanke, predict a Bitcoin collapse as the greed index increases.
Aside from that, the Kraken report highlighted the first runner-up, Ethereum (ETH). The EIP-1559 update, according to the exchange, had a beneficial effect on the fluctuating nature of Ethereum’s fees. Furthermore, Ether’s daily burn and consequent deflationary action are mostly led by rising activity in NFTs and decentralized exchanges.
A drop in either would result in “ETH becoming less disinflationary and, as a consequence, briefly softening appetite for the cryptocurrencies.” As per Coingecko, ETH has increased from approximately $2,818 to $3,581 after the upgrade’s deployment. Thousands of ETH have been burnt, boosting the token’s value as shortage increases.