Connect with us


Analyst points out 3 factors that will drive rise in Bitcoin



Bitcoin price has risen over 60% since the beginning of the year. However, the current price is almost 30% lower than in April.

In this scenario, with just a few months to go before the end of the year, analysts are looking to predict where the price of the largest cryptocurrency will go by the end of 2021.

One of the most popular models, Stock-to-Flow, sees the BTC exploring six-figure territory in late December and going above $100,000.

However, for Bitcoin to reach such heights, it would have to more than double its value in a few months.

Model creator planB recently described some of the potential reasons that could drive this increase.

According to him, one of the main reasons is the possible approval of a Bitcoin ETF.

The US Securities and Exchange Commission, the SEC, has received numerous requests since 2016. However, it has rejected almost all of them until last year. But Gary Gensler, SEC chairman, said he thinks a Bitcoin Futures ETF is positive, prompting speculation that such a product could in fact be approved by the end of this year.

“If it does happen, it would legitimize the primary cryptocurrency among many traditional investors and financial institutions. After all, they would have exposure to the asset through a regulated ETF,” he said.

Massive Adoption and China

Adoption is another crucial word. For PlanB, the legalization of Bitcoin in El Salvador will be a big catalyst in the price. He believes that after the country adopts the BTC as legal tender, bigtechs like Apple, Amazon, Google and Microsoft can follow suit.

In addition, he pointed out that a return of Bitcoin to China could also cause a boom in the price. However, he acknowledges that this seems like the most unimaginable scenario at the moment.

“China has been against the cryptocurrency space almost since it’s been around. This year, however, the country took it to a whole different level, going after digital asset miners, commerce and everything else,” he said.

As highlighted by the analyst, miners had to look for other regions, which had temporary adverse effects on the BTC network. Furthermore, several centralized cryptocurrency exchanges had to disrupt services to Chinese users.

“Consequently, the chances of a turnaround in China seem slim or none. However, it may not be necessary. The US – the world’s largest country in nominal GDP – has already said it will not follow suit. This had a positive impact on the markets”, he stated.

Bitcoin is under $50,000 at time of writing. In other words, to reach the mentioned price, I would have to double the price in just three months, which seems like a difficult task:

“However, history shows that cryptocurrency is capable of impressive increases. Exactly a year ago, it traded at $10,500. However, BTC had a big growth in late 2020 and ended the year at US$29,000. From a percentage point of view, this is an increase of 175% in the same period”, he concluded.

Read also: Bitcoin hits $50,000 and cryptocurrency prices get higher

Also read: Solana and Tezos beat Bitcoin among earnings for the week