A seasoned crypto enthusiast knows that these decentralized digital currencies tend to be volatile, with frequent market price changes happening from time to time, which keeps a wide window of predictability open for the investors and market players. Even with that constantly changing market dynamics, Bitcoin and altcoins have been faring well in value.
For the first time since December of 2017, the Bitcoin price reached USD 20,000 generating great curiosity among the market analysts, who are now predicting and hoping the price to take another milestone leap in the coming years as well. Going by the ‘double the price’ predictions, it is expected that Bitcoin price could take a jump to USD 40,000 and even touch USD 50,000 mark in 2021. As per a back-testing model method, the Bitcoin price might positively create that milestone in the coming year, if not then shift within the USD 40-50K bracket.
Before we get into the possibility of Bitcoin reaching USD 50K in 2021, let’s do a run-through of its price milestones over the years.
Bitcoin Price Chronology
There have been multiple milestone price moments of Bitcoin over the years. Listed under are the biggest price movements to date:
In the first half of April 2013, Bitcoin was getting traded for USD 237, but the price sharply fell to USD 67 overnight. The more than 70% price drop hit the market hard and had a lasting impact for over six months following which the price recovered gradually.
Early November 2013 Bitcoin started rallying from the plunge earlier that year, which is considered as one of its most remarkable bull runs. The price quadrupled, stabilizing at USD 700 by the New Year.
The initial months of 2014 witnessed mild tension in Bitcoin prices, which only intensified after the news of crypto exchange Mt.Gox getting hacked broke out. This caused the price to drop from USD 800 to USD 450.
The year 2017 was great for Bitcoin with the consistent bull runs. Between November and December, the price skyrocketed from USD 6,600 to Bitcoin’s all-time high of more than USD 20,000, which was a three-fold jump.
2018 contradicted its processor on Bitcoin price due to the prolonged bearish trends. The price fell from USD 6,700 to lower than USD 3,700 by November.
Bitcoin price started showing bullish trends again, gradually reaching USD 8,000 in the initial months of 2019. In June Bitcoin rallied high to reach USD 13,000 stabilizing around USD 10,000 for the latter half of the year.
Prediction for 2021
Sometime in 2019, a Bitcoin price model created by a quantitative analyst of a European institution created quite the buzz on social media. It styled the stock-to-flow model, equating the scarcity of Bitcoin, deriving it from the above the ground supply and dividing the same by the coin’s rolling issuance, to the market capitalization. The results determined the value of BTC between USD 55000 to USD 100,000. While the historical accuracy of the model ensures the gradual achievement of the price, the question is when the surge will happen.
With the recent valuation and the tendency of BTC to double-up in its leaps, the crypto world is brimming with excitement that mid-2021 might be the time when Bitcoin touches the 50k milestone. While the market does show an uphill trend, the exact time is hard to pinpoint with assurance, but as of yet, things look quite optimistic for the coming year for Bitcoin.