The rollercoaster that is Bitcoin is experiencing another day of high volatility with the price at the time of writing an all-time high of $47741 in a volatile but good day for holders of the world’s most popular cryptocurrency.
Its been an intense ride for Bitcoin since passing the key psychological barrier of $20,000 in mid-December. After passing the $20k there was no turning back, rising another 50% before the year end. By the close of a memorable 2020, Bitcoin had risen 305%. The yield for 2020 far paced that of Gold – 25% and the S&P 500 Index at 16%.
As DailyInvestNews discussed earlier this week, the current Bitcoin bull run is very different from that of 2017. However, the question on every crypto enthusiast and investors’ mind is what’s next for Bitcoin?
What’s Next for Bitcoin?
It’s important to note that amidst the bitcoin fever there are voices predicting this bubble bursting soon.
Economist David Rosenberg stated to Bloomberg that he thinks bitcoin is in a bubble and investors simply don’t understand the supply dynamics of Bitcoin
“You speak to most people that are asking me to put money in bitcoin, they can’t even tell you who the person was that developed it or even how it’s actually mined,” the Rosenberg Research chief economist said. “It’s just a classic, follow-the-herd, extremely crowded trade. It’s in a massive bubble.”
David Rosenberg
However, others are more bullish. Gemini crypto exchange founders Tyler and Cameron Winklevoss of Facebook infamy said in a recent interview that Bitcoin price will eventually reach $500,000.
“The question in our mind is not so much does it get to $500,000, but how quickly,”
Tyler Winklevoss
Without doubt the political turmoil in the US and the ongoing impact of the global pandemic continues to be good for Bitcoin. Last year, Bitcoin emerged as a credible safe haven investment and inflation hedge. There is nothing to suggest that the Bitcoin ascent will end soon. There will be blips and falls, but a $100,000 Bitcoin price in 2021 is a real possibility.
