BTIG strategist Julian Emanuel reckons the price of bitcoin could return to levels north of $50,000 by the end of the year, despite the currency’s present struggles. The crypto market has been put through a major ordeal in recent weeks, one which saw BTC drop from over $63,000 to just above $30,000 in just a few days.
BTCUSD Chart By TradingView
The downward move has prompted several investors to dump their holdings yet many remain intransigent and continue to retain ownership.
Sticking To The Prediction
Bitcoin’s plunge is the result of several factors. However, Elon Musk’s very public opinions are considered to be the main cause of the ongoing volatility. China’s renewed negative stance on bitcoin and the mining thereof is also responsible.
There are many experts who reckon the asset will be worth $500,000 in the near future. The Winklevoss twins, who made millions as early crypto adopters, have indicated that they will not sell until the currency reaches the half-a-million mark.
It was predicted that bitcoin’s price would surpass $100,000 by the end of 2021 but that now appears to be more wishful thinking than anything else; the bar has been placed lower as a result. According to Emanuel, there’s every chance BTC returns above the $50,000 mark by the end of the year, while Ethereum is expected to see its value rise above $5,000.
“Though regulatory uncertainty in the U.S. and elsewhere remains, BTIG Strategy and FinTech [teams] see the long-term case for digital assets – the transformational power of blockchain, a store of value in an increasingly uncertain and inflation prone world – stronger than ever, and we reiterate our year-end 2021 price targets for bitcoin, $50,000, and Ether, $5,000 and would take advantage of the present weakness to add to core holdings,” he wrote as part of a research note to BTIG clients, per Yahoo Finance.
A Positive Bounce
Bitcoin is still making waves in terms of its popularity, in spite of the volatility, and is growing at a faster pace than the internet in its infancy. The price went up over 15% over the weekend and, at the time of writing, had gone up 5.56% over a 24-hour span, with the value at $34,552.54.
“The bounce is “positive”…but since it has only taken bitcoin back into the middle of its range…it’s not necessarily “bullish,” Miller Tabak Chief Markets Strategist Matt Maley pointed out. “In other words, the crypto bulls have got to be relieved that bitcoin did not drop below the bottom end of its range, but the rally has not been enough to give them any signals that it will break out to the upside any time soon.”
There’s quite a lot that could happen between now and the end of the year. After all, BTC experienced a drop of over 40% in a matter of days. There’s really no telling what could happen within the run-up to 2022.
