Will bitcoin rise or fall

Why Is Bitcoin Going Up, and Will It Crash Soon? What’s Next as Price Doubles to $40K

Bradley Keoun

Muyao Shen

Why Is Bitcoin Going Up, and Will It Crash Soon? What’s Next as Price Doubles to $40K

Bitcoin’s prices reached an all-time high of above $40,000 less than a month after breaking $20,000 for the first time. Since the start of the most recent rally, ostensibly begun in October, its value has increased fourfold.

So for pros and newbies alike, or if you want to be the cryptocurrency expert at your next Zoom party, it’s natural to ask: Why are prices going up, and will bitcoin crash?

Bitcoin was invented just 12 years ago as a new type of electronic payment system, built atop an Internet-based computing network that no single person, company or government could control. The reality is the bitcoin cryptocurrency’s trading history is so short, with methods for valuing the asset still largely untested, that nobody really knows for sure what it should be worth now or in the future.

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That hasn’t stopped digital-asset investors or even Wall Street analysts from putting out price forecasts ranging from $50,000 to $400,000 or beyond.

Based on CoinDesk’s reporting, here are a few key reasons why bitcoin prices have recently rallied:

• Demand from institutional buyers, many of them eyeing bitcoin as a hedge against inflation. The cryptocurrency is seen as a hedge against inflation because, under the network’s original programming, only 21 million bitcoins can ever be created; so there’s a contrast with central banks like the Federal Reserve that can decide based on a committee vote to print more money. Big asset managers including Tudor Investment and Guggenheim Partners have announced bitcoin purchases or wagered on prices using futures contracts on the Chicago-based CME exchange. Even old-line Wall Street firms such as Morgan Stanley have weighed in with bullish pronouncements. Analysts at JPMorgan Chase, the biggest U.S. bank, recently predicted a price of $146,000 over the long term.
• The U.S. dollar’s decline in foreign exchange markets. The U.S. Dollar Index, a gauge of the dollar’s value against major world currencies like the euro and Japanese yen, slid 6.8% in 2020 and is down again in 2021. That’s key for bitcoin because the cryptocurrency’s price is mostly denominated in U.S. dollars. Possible reasons for the greenback’s decline include the Federal Reserve’s $3 trillion-plus of money printing over the past year, which is roughly three-quarters of the entire amount previously created in the U.S. central bank’s 108-year history. Images of protestors storming the U.S. Capitol on Wednesday probably didn’t burnish America’s leadership role on the global stage, and now many economists are predicting that big spending plans under a Democratic-controlled government would lead to new stimulus bills and potentially outsize government budget deficits for years to come. Much of those extra costs could be financed through additional Fed money printing.
• Retail purchases. Many individuals are speculating on bitcoin prices, and it’s become increasingly easy to buy bitcoin, with big services like PayPal enabling purchases last year. Analysts for the digital-asset firm ByteTree noted this week that blockchain data appear to show a high concentration of bitcoin purchases in the amount of $600 — the same amount as the American stimulus checks sent out in the latest U.S. coronavirus emergency aid package.

All this may have led to a tremendous rally over the past few months. But could bitcoin prices crash? Of course they could, several analysts told CoinDesk.

The cryptocurrency’s price is notoriously volatile, and substantial and unexpected price swings aren’t uncommon. Below is a sampling of comments from cryptocurrency analysts and other financial experts on how a pullback might look, and what might cause it.

• Bitcoin “has been and remains extremely volatile,” said Joe DiPasquale, CEO, BitBull Capital, a cryptocurrency-focused hedge fund. As recently as Monday, he noted, after prices had climbed to a new all-time high, they tumbled almost $7,000. “What causes this is that people can use lots of leverage, so they can easily get washed out.” He sees a correction as possible, though there appear to be plenty of interested buyers around $28,000, so that level might function like a price support.
• There hasn’t been a single year since 2013 when prices have not fallen at least 25% from a high point reached earlier in that year, said Gavin Smith, CEO of the digital-asset firm Panxora. He said he wouldn’t be surprised to see bitcoin prices rise to $70,000 or $80,000, nor a setback of 40%. Medium term, he’s bullish: “Over a three-year period, this is a great asset.” But over the long term, there’s a risk that technological developments could overtake bitcoin. “Even with quantum computing, there’s nothing on the horizon that indicates that could happen,” he says, “but it’s always dangerous to completely ignore the risk.”
• Bitcoin prices could rally two to three times from their current level before falling back to about where they are now, said Mike Venuto, co-portfolio manager of the Amplify Transformational Data Sharing exchange-traded fund, which invests in blockchain-related stocks. That would imply a retracement of more than two-thirds from that hypothetically new all-time high. “What’ll cause a crash more likely is overexuberance on the upside. I don’t think we’re there yet.”
• “There will be swings, and yes, the swings will be wild,” said Denis Vinokourov, head of research for the cryptocurrency prime broker Bequant. “You have a lot of retail flow that tends to panic.” He sees prices going up in the long term, at least partly based on the bullish expectations of big Wall Street firms. “Can it go to $4,000? Yes.” One potential trigger for a rapid sell-off could be any actions brought by authorities against the company behind tether (USDT), a privately issued, dollar-linked digital token known as a “stablecoin” that has become a key source of liquidity in digital-asset markets. New York State prosecutors are currently battling Tether in court due to its finances.
• “The history of financial markets is the history of bubbles,» said James Angel, Georgetown University finance professor. He notes that authorities could move to crimp the bitcoin rally if they start to get worried that it’s becoming a threat. “Almost everybody who tries to start their own money does so in competition with a national currency, and it usually gets shoved aside by regulators.”
• «While we’re currently seeing an unequivocal expression in the market’s bullish sentiment, a correction could well be on the horizon,» said Sui Chung, CEO of CF Benchmarks, a cryptocurrency provider. «This is a natural part of market mechanics. While it may dampen near-term enthusiasm, it will ensure future price rises remain grounded.»
• “There is likely to be profit taking along the way, causing temporary dips,» said Guy Hirsch, managing director for the U.S. at the trading platform eToro. «But given the extraordinary amounts of adoption by institutions, it would be a surprise if bitcoin dropped below $20,000 any time soon.”

So for the Zoom party, you can tell them: Yes, according to the experts, a crash is probably coming but that’s typical for bitcoin, and if history is any guide, prices will probably recover.

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Will Bitcoin Rise Again in 2020 Or Another Fall is Coming?

Will Bitcoin Rise Again?

Yes, Bitcoin will rise Again in 2020 and a top coin which was first ever cryptocurrency in market started with decent technology and now it is one of the best inventions in investment of world along with faster currency transfer medium, so being top or first-ever coin many investors was started investing in this cryptocurrency which results at one point at end of 2017 along with Bitcoin other cryptocurrencies started rising with huge percentage with average growth percentage of above 400% and this percentage was the best thing about cryptocurrency, so this become overnight sensation, but after following banned in China & other countries disaster starts happening where most of the old coins started dropping with huge percentage, which impacted really bad which cause continuous transaction dropped as well as user also starting losing trust.

Bitcoin Price Prediction 2020

As of today, Bitcoin is trading at $8501 USD price with 6% of one-day growth rate along with this Bitcoin doing really great in 2020 because since 3 January 2020 Bitcoin is going up and it almost rise by $1200 USD which is really great growth as compare to another cryptocurrency, as some of you still find this is low percentage of growth but looking at current condition and market of investment then this growth still countable and talking about potential many of expert of cryptocurrency still giving hint about Bitcoin will be touching $20k USD mark in 2020 and that will be surely happening in upcoming month, as there will many problems such as security of transactions, hackers attack and other Black money related things were repaired or we can say overcome by efforts of maker of Blockchain as well as other technology and they also reduced transaction fees of every transaction along with low amount transaction will be helping to take huge leap in market cap value.

How Bitcoin Go Up 2020?

As total 20+% total supply is still available to buy and because of per coin prices is really huge as compared to another cryptocurrency to finish total supply Bitcoin takes more time, so if this increment in market cap value keep shaking up then it will create huge fluctuation in prices, which automatically help to bring lots of investor to Bitcoin and surely till end of February 2020, Bitcoin will rise above $10k USD mark, as we know there is so many big cryptocurrency was launching including Facebook cryptocurrency under name Libra going to be debut in 2020, which expected to be following Blockchain technology, so to initialize token coins they may go with Bitcoin as exchange which also create more buzz and keep transaction up which is again help to take lead in 2020.

«Join These Biggest ICOs of 2021»

Bitcoin Another Fall Coming or Not?

Its really unpredictable but we can’t say anything about it because cryptocurrency already face huge from mid of 2018 to end of 2019, so there are very less chances of another fall, as following previous year performance in which Bitcoin was trading at average price of $3500 USD mark then after maintaining it till April 2019 it started growing with huge percentage in which from April 2019 to May 2019 it was surge by 31.46% and then again from May to June 2019 it goes up with 58.27% and it continues till August 2019 in which Bitcoin was showing 15% growth rate, so if this repeat this year also then till July 2020 BTC prices will be cross $15k USD with 10% growth in market cap value.

Month & Year	Price Prediction in USD
February 2020	$8500 USD
March 2020	$9100 USD
April 2020	$9320 USD
May 2020	$10,450 USD
June 2020	$12422 USD
July 2020	$15,630 USD
August 2020	$14,872 USD
September 2020	$16,983 USD
October 2020	$14232 USD
November 2020	$18,345 USD
December 2020	$19,800 USD

Note: above prediction is just set by previous year performance of Bitcoin.

So looking at the above prediction December 2020 or Beginning of 2021 will be the time where Bitcoin again crossed $20k mark and that will be a 110% growth rate for those who invest their money in January 2020 or December 2019.

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Bitcoin Price Prediction: Will Bitcoin Crash or Rise?

Will Bitcoin crash? Learn about all of the speculation in the guide below!

Last Updated: January 22, 2021

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So, you’ve heard about Bitcoin and you want to invest.

You’re not the only one! Bitcoin has been one of the best investments you could have made in the last 5 years. People are still using it to make a lot of money, in many different ways.

In this guide, I will teach you the history of Bitcoin, the future of it, and how to understand what goes into its price prediction. We will look at predictions for different years, including the Bitcoin price prediction 2021. I will answer the questions that are on everybody’s minds, like “will Bitcoin crash?” and “why is Bitcoin rising?”.

Understanding how to predict and invest is the first step to building a successful portfolio. However, with all investments, there are risks involved. So, you should always speak to a financial advisor before making any major decisions — whether it be investing in Bitcoin, or utilizing a crypto exchange platform in order to buy some cryptocurrencies, in general.

Note: Your portfolio is made up of your investments. For example, if you were to invest in Bitcoin, Ethereum and Litecoin, then those coins are in your portfolio.

Table of Contents

Bitcoin’s Roots

Before starting to predict bitcoin projections, let’s go back a little to the basics. I assume, as you are reading this guide, you must have heard of Bitcoin. Bitcoin is the world’s first digital currency, and it has been very popular over the last year! A lot of people have made large profits by buying Bitcoin at a low price and then selling it for a high price.

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Confused? Well, let me explain.

Bitcoin is a currency, just like US Dollars, Japanese Yen, or British Pounds. It can be bought, sold, and exchanged for goods and services. And, just like any other currency, upcoming Bitcoin price predictions are always of a speculatory nature.

When you go to shops, you can either use paper money to buy items, or you can pay using your bank card. Whenever you use your bank card to make a payment, the money is taken from the bank account balance.

Bitcoin is very similar to that, except you are unable to receive it in its paper note form (like US Dollars). It is a peer-to-peer currency, meaning that there are no banks involved.

All Bitcoin transactions are electronic — you can use it to buy and sell things online, and also in a few selected retail stores. Not only that, but there are now Bitcoin ATMs that can turn your Bitcoin into your local currency.

Some Cool Facts About Bitcoin:

• Bitcoin was established in 2009 by Satoshi Nakamoto;
• Nobody knows who Satoshi Nakamoto is — this is one of the biggest mysteries about Bitcoin;
• Satoshi Nakamoto wanted to create a currency that did not rely on the current banking system;
• There are only 21 million Bitcoins that can be created.

Let’s move on and discuss the actual operation processes of Bitcoin.

How Does Bitcoin Operate?

One more thing to discuss before actually going to the Bitcoin price prediction is the way that Bitcoin operates. Every single Bitcoin transaction takes place on the Bitcoin blockchain. A blockchain is a piece of technology that protects Bitcoin and its users by keeping them safe from hackers.

It is powered by a network of computers, which are often called “nodes”. These nodes work together to verify every Bitcoin transaction that takes place.

In simple terms, when someone sends a Bitcoin to another person, one node on the blockchain network will verify the transaction using a mathematical equation. The transaction is then placed on the blockchain network.

The “nodes” that help operate the blockchain network are rewarded for their contribution. When a node verifies transactions, they receive Bitcoin for their efforts. This is a process that is called “mining”.

Bitcoin is decentralized: nodes all over the world operate the network. The network is not controlled by the main server or a group of main servers. This is good for the security of Bitcoin, as it makes it much harder for hackers to get access to the network.

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Why Does Bitcoin’s Price Fluctuate?

Note: to fluctuate means to change with no fixed pattern.

“Why is Bitcoin rising?” and “is Bitcoin going to crash?” are questions we hear a lot. To make or understand a Bitcoin price prediction, you must first know how Bitcoin fluctuates.

Just like most currencies, the price of Bitcoin changes every day. The only difference is that the price of Bitcoin changes on a much greater scale than local currencies.

Bitcoin’s value is based on how valuable the market (the people buying and selling Bitcoin) thinks it is. Think about some of the more-physical things you can currently invest in, such as gold. The price of gold depends on its supply and demand. For example, when a new goldmine is discovered, the price drops. This is because more gold becomes available and so it is no longer as rare. So, the rarer Bitcoin is, the higher Bitcoin predictions are.

The example of Gold is similar to how Bitcoin price predictions change. However, the price of Bitcoin usually changes because of the news that is published about it. Here’s how it works:

• When there is bad news published about Bitcoin, there are a lot more people selling Bitcoin than buying it. These people sell their Bitcoins for lower prices than the current value so that they can sell it quickly. This causes the price to drop.
• When there is good news about Bitcoin, there are more people buying Bitcoin than there are people selling it. These people buy Bitcoin for higher prices than the current values so that they can buy it quickly. This causes the projections of Bitcoin to rise.

Naturally, as you can imagine, things are much more complicated than that — still, it should serve as a decent general waypoint.

The Supply and Demand of Bitcoin

When Bitcoin was created by Satoshi Nakamoto, he set a limit for how many Bitcoins can be made — 21 million. This means that for as long as Bitcoin exists, there can only ever be 21 million — no more. So, if the popularity of Bitcoin increases, so will the Bitcoin price predictions.

Bitcoin History

The price of Bitcoin is up one day, down the next day… it has a history of being difficult to predict in the short term.

Yet, a lot of investors like this. With prices that fluctuate (go up and down) regularly, investors can often buy Bitcoin at a low price and then sell it at a much higher price.

There are other investors, though, that buy Bitcoin to hold it for the long term — this is how a lot of people got rich! Some investors bought Bitcoin over 5 years ago for super low prices (under $100) and then held it until the end of 2017 when it was worth more than $18,000!

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The 2017 Bitcoin Rush

Until 2021, Bitcoin’s value reached its highest point in January 2017 when it hit $19,498.63. At this point, Bitcoin was one of the most talked about things in the media. Everyone you knew — mothers, grandparents, school teachers, and doctors — were all asking “how high will Bitcoin go?”. «Bitcoin price» and «Bitcoin price» predictions were two of the biggest trends on Twitter!

This media attention, or “hype”, caused Bitcoin’s price to increase more than it ever had before. It went way, way up. It was crazy! News reporters and financial analysts all made their Bitcoin predictions — which made the public interested. More and more people were trying to buy Bitcoin and so the price increased.

Soon after that, Bitcoin Bitcoin’s price crash ed .

Quick note: ‘ATH’ means All-Time High. It is the highest the price has ever been.

The question “when will Bitcoin crash?” had finally been answered. When Bitcoin price prediction started to become smaller and smaller, millions of people were selling their Bitcoin and the price fell to under $10,000.

That’s a significant crash!

It took some time, however, Bitcoin managed to get back up again and in January 2021, its price increased significantly and reached its all-time high of $41,940.

Other Bitcoin Crashes

Bitcoin’s price has crashed many times over the years:

• In 2011, the price crashed 93% in five months;
• From November 2014 to January 2015, Bitcoin’s value was halved, much like its crash in December 2017.

Another time that Bitcoin crashed was when investors became worried about new laws and regulations. There was news that South Korea and China might ban cryptocurrency exchanges. As you can imagine, this made a lot of investors scared and so they sold their Bitcoin.

Note: There aren’t a lot of laws in place for cryptocurrency and a lot of crypto transactions are anonymous. While some investors like this, it is seen as a problem by most government s .

Bitcoin Price Prediction: The Future of Bitcoin

We all wonder where Bitcoin is going to be 1 year, 2 years, 5 years or even 10 years from now. It’s tough to predict, but everyone loves to do it.

Will Bitcoin Crash Again?

If more countries create regulations/laws for cryptocurrency, more bad news will be published. This means we may see Bitcoin crashing again. Countries such as South Korea, Japan, China, France, and the United States all want to create new regulations.

Even though they want to create new regulations, we must remember that:

This could take a long time.

It might not affect the price of Bitcoin.

Until then, the most popular Bitcoin projection is that it will continue to rise.

What are the Bitcoin Projections for 2021?

This is the kind of question that starts arguments at dinner parties. Will Bitcoin rise this year? Will it fall next year? Who knows? What is the Bitcoin price prediction? Even though Bitcoin and its technology are very useful and are changing the world, anybody that claims to ‘know’ whether the price of Bitcoin will rise or fall is a liar. Sorry, but that’s the truth.

I strongly believe that blockchain technology and cryptocurrencies are the future. This is why I believe the price of Bitcoin will increase this year even more. This is what I believe, but I can never know. All I can do is guess and make Bitcoin predictions. You can look at the charts, you can look at the news, but you can never ‘know’ for sure.

While talking about Bitcoin price predictions there are people that say Bitcoin is a ‘bubble’ like the ‘dot-com bubble’ that happened when internet companies’ stocks started increasing in price back in the late 1990s. They said that Bitcoin will ‘burst’ in 2021, meaning they think it will crash. However, since Bitcoin has reached its all-time high at the beginning of 2021, it doesn’t seem to be crashing.

In the dot-com bubble, the stocks got to really high prices . But when the bubble ‘ burst ’, the stocks went straight back down to low prices. The people that bought the stocks when they were at high prices, lost most of their money. This is why it is important not to invest more money than you can afford to lose.

There are also people — like John McAfee (the founder of McAfee Security) — who predict that the Bitcoin price will keep increasing. In fact, John McAfee predicted that Bitcoin will multiply by 10 (increase by 1,000%) in 2021! He also says it’ll be $1,000,000 by 2021. Sadly, this didn’t happen, however, at the beginning of 2021 Bitcoin’s price increased significantly and reached its all-time high. At the moment, Bitcoin’s future looks bright, however, no one knows what it will bring.

Bitcoin Predictions from Experts

Now, let’s check out what some cryptocurrency experts have to say about this matter.

Bitcoin Price Prediction: The Future Of Bitcoin

The Saxo Bank thinks Bitcoin will increase a lot this year. Not quite as much as John McAfee does, but still a lot. Saxo’s Bitcoin prediction 2021: they say the Bitcoin price will rise above $60,000 in 2021! This isn’t all they say, though. They also say the Bitcoin price will then crash and lose more than 98% of its value! That’s quite a rollercoaster.

Two Saxo Bank analysts said, “Bitcoin will continue to rise – and rise high – during most of 2021 but Russia and China will together engineer a crash.” They think it’ll crash because of new cryptocurrency regulations/laws from governments.

Blockchain Capital Partner, Spencer Bogart’s Bitcoin Price Prediction — How High Will Bitcoin Go?

Other analysts have made Bitcoin price projections in 2021 that says it will increase to more than $50,000. Blockchain Capital partner, Spencer Bogart’s predictions on Bitcoin is exactly that. This prediction seems to be one of the most realistic ones because Bitcoin’s price already managed to reach almost $42,000 in January of 2021.

He said the increase would be due to big investments being made by large companies and investment banks. Mr. Bogart believes banks have seen how much money people are making with Bitcoin and do not want to miss out.

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