After another year and Bitcoin’s most recent bull run, it’s time once again for new Bitcoin price predictions from some of the most trusted financial institutions in the world. Each year, the landscape of the cryptocurrency world changes and each piece of new information affects what experts see as Bitcoin’s near or long-term potential. Last year, institutional interest in Bitcoin has skyrocketed and more investors have stored crypto away in Bitcoin IRAs and 401ks, while money printing has hit all-time highs. With this constantly evolving landscape, what do experts think the future price of Bitcoin could be?
Some of the most famous names have taken center stage lately with soaring Bitcoin price predictions. Guggenheim, an investment advisory firm with more than $246 billion in assets under management, tops the list by claiming Bitcoin should be worth $400,000. The firm’s global chief investment officer Scott Minerd described Bitcoin’s “scarcity and relative valuation to things like gold,” while also pointing out that, unlike gold, Bitcoin has “an unusual value in terms of transactions.” Guggenheim also joins a growing list of other well-known investors like Paul Tudor Jones, Stanley Druckenmiller, and Mike Novogratz in believing that a large portion of Bitcoin’s future value stems from the current “rampant” pace of money printing coming from the Federal Reserve.
J.P. Morgan Chase
J.P. Morgan has joined the ranks of those calling for six-digit Bitcoin. Taking the long view with what they see as a “multi-year process,” J.P. Morgan sees Bitcoin’s main draw in its potential to rival gold as a store of long-term value. Bitcoin, at its recent all-time highs, breached $1.4 trillion in market cap. While the bank does point out that Bitcoin’s volatility will have to decline to begin to match gold as a stable asset, they’re closely watching the flow of capital into trusts as a gauge of demand. With capital flows reaching around $1 billion each month as of December, J.P. Morgan Chase analysts currently have a price target on Bitcoin of $146,000.
They may not have intended for their price predictions on Bitcoin to become public. However, leaked technical analysis from the famous firm using previous Bitcoin bull runs as a guide puts one senior analyst’s view of Bitcoin’s potential up at $318,000 over the next 12 to 24 months. With Bitcoin following “the type of pattern that sustains a long-term trend,” Tom Fitzpatrick, Citi’s global head of CitiFX Technicals, also points to the fact that the arguments in favor of Bitcoin are stronger than ever.
Alongside increasing digitalization of all kinds of assets – from gold to central bank currencies – Fitzpatrick sees Bitcoin as a hedge against inflation. Citibank even predicts the dollar may fall as much as 20% in 2021, while Fitzpatrick described Bitcoin as “21st-century gold.”
CryptoTwitter’s Bob Loukas
CryptoTwitter, as it has been coined, houses many of the most insightful minds. It’s a platform where experts of all kinds connect with their audiences directly, and one of those local experts is Bob Loukas. A financial analyst for over 25 years, Loukas’ track record of insightful price predictions is the product of fundamental research. Loukas also expects that inflation will spur Bitcoin to new heights, pointing out the Bitcoin market’s small size in comparison with asset classes like gold and other financials.
However, he also notes that most of Bitcoin’s trading is being done on spot markets – suggesting buyers are choosing to hold Bitcoin itself rather than in the form of derivatives like Bitcoin futures – and that the price increases, instead of being an isolated event, are following increased use of the Bitcoin network. Bob Loukas expects Bitcoin to be priced at $200,000 by the end of 2021.
Why Price Predictions Matter
Price predictions are a useful tool in investment decision-making, though price predictions are no guarantees. While Bitcoin may or may not hit $318,000 or $400,000 this year or the next, it is clear the expectation is that it will go up over time. Will the price of Bitcoin over the next year, five years, or ten years be higher than it is today? Many crypto experts and financial institutions believe so. With that being said, now may be an excellent opportunity to invest in Bitcoin and other cryptocurrencies, especially with a Bitcoin IRA.
Planning for the future with a Bitcoin IRA, or rolling your 401k into a self-directed Bitcoin 401k can not only allow you to take advantage of cryptocurrencies like Bitcoin and Ethereum as investments but also provides significant tax advantages. Fundamental research suggests optimism is warranted, whether or not price predictions can tell you the exact value of your future portfolio. Regardless of where it lands – most cryptocurrency experts believe crypto will continue to go up. Investors can take advantage of the moment by setting up a Bitcoin IRA.
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Due to market variations, price quotations and predictions are subject to change. No guarantees are implied, and prices quoted here are for informational purposes only and do not constitute an offer or financial advice