Bitcoin Long Term Price Prediction

Bitcoin price all-time growth, via Coinbase

As ingenious a visionary Satoshi Nakamoto was, perhaps even he could not have imagined this rise in the Bitcoin price – BTC made another all-time high in 2021, at $69,000 (over 50,000 GBP) in November 2021. The total market cap of BTC hit $3 trillion, an over 100 per-cent increase from a year prior.

Will Bitcoin go even higher and possibly hit $100,000 before 2022? In this article we’ll review popular Bitcoin price predictions from technical analysts and crypto traders.

Bitcoin Price Predictions

It’s common knowledge that Bitcoin, like other cryptocurrencies, is highly volatile, which means its price might drop again.

BTC Price Prediction; 2021-2030

Buy Bitcoin

Your capital is at risk

November 2021 to End of 2022

In the year early 2021, the price of Bitcoin was $29,048.39. Bitcoin is currently trading at $59,750.56 as of November 18^th, up more than 110 percent from the start of the year. Bitcoin is expected to be worth $101,693 by the end of 2021, with a year-over-year increase of +250 percent. The increase from today through the end of the year is 59 percent. The price of Bitcoin will rise to $136,803 in the first half of 2022, and then rise another $13,443 in the second half to complete the year at $150,246, a gain of 136 percent over the current price.

2023 to 2026

As we go further, Bitcoin price is expected to rise even in 2023 wherein it can go up till $217,180 by the end of the year, which essentially means a rise of about 241% from its current price. Furthermore, the price would go up to the mark of $249,757 during the middle of 2024 and a subsequent rise would be witnessed by the end of the year. From the data in the table, you can observe that the years 2025 and 2026 would witness an even higher rise in Bitcoin price where it would go up till $361,797 towards the end of 2026.

2027 to 2030

Riding on the similar trend, Bitcoin is expected to see continuous growth in the subsequent four years as well (till 2030). The rise goes up to 469% by the end of 2027 where the price of Bitcoin would go about $362,968. Although this rise would not be that high in 2029 and 2030, it is still expected to be more than 300% which would still yield tremendous returns.

Technical Analysis of Bitcoin

The price action of Bitcoin (BTC) is in a bullish uptrend as it is making what traders refer to as higher highs (HH), and higher lows (HL) on a high timeframe (HTF) such as the monthly chart.

In the beginning of the year, Bitcoin traded at around $29,000 level, adopting a bullish run that sustained till the month of March. Thereafter BTC crashed, again reaching January level around May.

The wicks didn’t break the $28,000 mark which indicates that it has strong support at that level, i.e. buyers were interested every time BTC/USDT approached $28,000 and the monthly candle never closed below that level since mid-2022.

Binance Technical Analysis of Bitcoin on Tradingview

Invest in Bitcoin

Your capital is at risk

The Bull run has continued since June wherein the price reached the all time high of $69,000 in the month of November.

If we draw a trend line connecting the lows of each monthly candle, and another connecting the highs, the Bitcoin price is rising in an upward channel. If price continues to respect this channel, we could predict a target of $130,000 to be hit sometime between 2022 and 2023.

An optimistic Bitcoin price prediction would see $100,000 reached in Q1 of 2022, and $130,000 in Q3 of 2022. A more conservative prediction for the Bitcoin price could be that it may need until early 2023 to break over $120,000. We suggest looking into Fundamental analysis (ahead) too for a holistic price prediction of Bitcoin.

Fundamental Analysis of Bitcoin

Fundamental analysis is conducted to determine the intrinsic value of any asset. Most of the assets are analyzed on the basis of their future cash flows, however, just as gold and silver, this can’t be done in the case of Bitcoins. This is why several publicly available information can be taken into consideration. Many experts also use the stock-to-flow method to conduct the fundamental analysis as well as to predict price for Bitcoin.

Transaction per day and Costs

Cost per transaction – Bitcoin

As per Ycharts, Bitcoin daily transactions stand at 282,049 as compared to Ethereum’s 1.345 million transactions. In the same way, the average cost per transaction is 3.384 USD for Bitcoin and for Ethereum it stands at around 5.680 USD. As per Binance academy, higher fee shows that there exists higher demand for Bitcoin than Ethereum. This in spite of the fact that Ethereum daily transaction is way more than Bitcoin.

Technology

Whenever we hear the word cryptocurrency, ‘Bitcoin’ comes in our mind. Though it is important to understand that there exists many other cryptos with far superior technology than Bitcoin.

For example, Ethereum has almost begun using Proof of stake as compared to Proof of work consensus mechanism used by Bitcoin. The former is more environmentally sustainable and better in efficiency than the latter. However as per cointelegraph, Bitcoin may also move to PoS once Ethereum proves the algorithm’s success.

Procession of Transaction

Another factor that makes Ethereum better in terms of tech is the ability to process transactions quickly. While Bitcoin takes 10 minutes to validate a new block, Ethereum only takes 12 seconds. Higher block time leads to more efforts in mining, therefore Bitcoin mining is no longer self-employment opportunity for hobbyists. This is why, 54% of Bitcoin mining computers are located in Sichuan Province of China.

It is estimated that higher concentration of miners would erode the ‘decentralization’ feature of Bitcoin, therefore it might be a thing of concern in the future.

Limits in supply

How many Bitcoins can be mined or supplied in the lifetime? The number is 21 million for Bitcoin, whereas with ADA it stands at 45 billion and finally with Ethereum, the number is limitless. It can be concluded that Bitcoin has an edge over other cryptocurrencies in this matter, just as Gold and other precious metals. This inherently makes Bitcoin more valuable.

What are the factors affecting the price of Bitcoin?

Bitcoin is the most extensively used decentralized digital money, and its value is determined by a number of variables. Due to the decentralized nature of Bitcoin, it is usually not regulated by any organization, group, or government.

Governments around the world are battling to keep Bitcoin under control as it continues to grow at an exponential rate. It’s done for two reasons: to safeguard investors and to increase tax revenue. Understanding and anticipating the elements that drive Bitcoin’s ups and downs can help us foresee and comprehend the entire cryptocurrency market.

1.    Rules and regulations governing Bitcoins

Regulators are disputing how to characterize Bitcoin and other cryptocurrencies as the popularity of these digital assets grows. While the European Union legal framework considers cryptocurrencies as qualified financial instruments, the EU has not passed any legislation to recognize Bitcoin as a currency. On the other hand, Bitcoin is legal in the United States and it also got listed as a decentralized cryptocurrency by the US Treasury long time back.

The value of a cryptocurrency decreases if the rules become too strict or repressive. If they are beneficial to the crypto business, on the other hand, they can work as a catalyst facilitator for rapid growth. Because Bitcoin is decentralized, that is, it is not linked to any one central government; legislation affecting investors can have a direct impact on the price.

Essentially, the price of BTC can decline if there is anxiety over a specific government statement or decision. Cryptocurrencies are international in nature, with decentralized ledgers that span numerous countries. Their regulation will necessitate a multi-economy concerted response. Given the diverse levels of interest in cryptocurrencies and their effect on economies of countries, this could be a difficult task. Furthermore, the price of Bitcoin is affected by the various reactions of different countries to Bitcoin as a currency.

2.    Effect of Social Media

Effect of Social Media on crypto prices

Source- The block

Various research studies have shown that Media plays a crucial role in determining the price of Bitcoin as well as other cryptocurrencies. The fact that a substantial portion of the general population get to know about Bitcoin by virtue of social media makes it an important factor in predicting the price of Bitcoin. Social Media has the power to either boost or hurt the price of Bitcoin. This strength comes from the fact that social media portrays cryptocurrency to the general public. If it portrays a good picture, the price may rise. However, if it is a negative portrayal, it may lower pricing.

To illustrate the power of social media, reliance can be placed on the recent example of Tesla and its founder, Elon Musk. Tesla, an electric car and clean energy firm, stated in early February 2021 that it had purchased 1.5 billion dollars worth of Bitcoin. This purchase was made to give the corporation “greater flexibility to further diversify and maximize returns” on its funds, according to the company. They also announced that they would take Bitcoin as payment for their goods, making them the first major carmaker to do so.

Following this, Bitcoin Price reached an all-time high, breaking the 44,000 USD barrier for the first time. It even came to the point where Elon Musk added the hashtag “#Bitcoin” to his Twitter bio, triggering a market craze. As we all know, Bitcoin’s price finally rose to $58,000 USD (its all-time high) and continued to astound people all around the world.

3.    Demand and Supply of Bitcoin in the market:

Bitcoin’s price is driven by the same factors that affect the value of any national currency: supply and demand. Bitcoin’s supply affects the number of units in circulation and consequently its market scarcity. The demand for Bitcoin as a means of exchange is mostly influenced by transaction demand. As a result, the price of Bitcoin is determined by the interaction between demand and supply in the market. When the demand for Bitcoin rises, the price rises, just like with conventional currency. When demand for Bitcoin declines, so does the price.

On the supply side, Bitcoin is a one-of-a-kind asset in that its new supply schedule is totally inelastic, meaning it is unaffected by demand changes. When demand for most things, including fiat currency and gold, rises, producers respond by increasing production and bringing prices back to equilibrium. Because of the difficulty of adjustment, while demand for Bitcoin rises, supply of new Bitcoin does not.

It is pertinent to note that in contrast to fiat cash, Bitcoin has a limited quantity. Only 21 million Bitcoins will ever be in circulation. Bitcoin is created at a set rate that declines over time, causing demand to outstrip supply. This adds to the price’s increasing pressure. Furthermore, Bitcoin’s future monetary policy is certain, providing investors high confidence that inflation will be introduced or enhanced at some point in the future.

4.    Competition in the Cryptocurrency Market:

Hundreds of different tokens compete for crypto investment funds, despite the fact that Bitcoin is the most well-known famous cryptocurrency. Bitcoin is expected to dominate cryptocurrency markets by 2021. However, its power has dwindled with time. Bitcoin accounted for more than 80% of the total market capitalization of cryptocurrency markets in 2017. By 2021, that percentage has dropped to under 50%.

The main cause for this was a rise in knowledge of alternative currency and their possibilities. Because of a surge in decentralized finance (DeFi) tokens, Ethereum’s Ether (ETHUSD) has turned out to be a formidable competitor to Bitcoin. Competition has lured investors to the asset class, despite the fact that it has drained investment money away from the Bitcoin ecosystem.

As a result, demand for cryptocurrencies has soared, as has public awareness of them. Bitcoin has benefited from the attention as a type of flagbearer for the cryptocurrency ecosystem market, and its prices have risen. While no one can deny the role of Bitcoin in opening up the market for cryptocurrencies due to its initial success and how it benefits from a first mover advantage in a networked context, It is unclear if this advantage will be adequate to maintain the dominant position in the long run.

5.    Bitcoin Mining

Bitcoin mining is a way of creating new currencies that involves using computers to solve complicated mathematical algorithms or riddles. Cryptocurrencies must be mined in order to function because they are constructed on a decentralized network. The Bitcoin mining software takes roughly 10 minutes to solve the difficult programme and process a block on average for those on the network.

The number of Bitcoins allowed by the system can also influence supply. This quantity is capped at 21 million, and mining operations will stop producing new Bitcoins once that amount is achieved. Cryptocurrency miners employ excavators to mine them, this method becomes more harder as time goes on. The price would almost probably be affected if the cost of extracting virtual money increased.

Which other crypto gained a good ground along with Bitcoin?

Doubling as both a cryptocurrency and a Blockchain platform, Ethereum is a favorite of program developers because of its potential applications. Ethereum, along with BTC, has also experienced exponential growth. In just five years, its price went from about $11 to almost $3,000, increasing more than 27,000 per-cents in the process.

Even while the crypto market was cooling off, Ripple XRP continued to surge forward in the past three months. Although the Securities and Exchange Commission lawsuit against XRP creator Ripple still looms large for owners of the cryptocurrency, the price of this crypto continues to soar among its contemporary cryptocurrencies.

Dogecoin’s rise comes on the heels of the Bitcoin boom, which has pushed the value of the original digital currency to more than $50,000. It also comes as stock markets around the world soar to new all-time highs despite the worst economic collapse in at least a generation. The once quoted “joke coin” is no joke anymore with its price rising as it got support from the doge father himself i.e. Tesla CEO Elon Musk.

Will Ethereum overtake Bitcoin or any other crypto currency?

Bitcoin price chart

Ethereum, the next best alternative to Bitcoin according to us, is a decentralized software platform that allows smart contracts and decentralized applications (DApps) to be written and run without the need for third-party downtime, fraud, control, or intervention. Ethereum’s goal is to establish a decentralized suite of financial goods that anybody in the world, regardless of nationality, can freely access. This element heightens the ramifications for those in some countries, as those without access to governmental infrastructure and identity can obtain bank accounts, loans, insurance, and a number of other financial items.

The distinction between Ethereum and Bitcoin has piqued the interest of big market participants like Goldman Sachs, which recently told its investors that Ethereum has a high possibility of overtaking Bitcoin’s $660 billion market valuation. Because of its real-world uses and capacity to store value, the Ethereum network holds more promise.

Ethereum-based apps are blooming instead of having a central authority that regulates how the Ethereum network’s applications run and what transactions are processed. DeFi apps are the most popular sort of these apps. In 2020, these apps grew by 2,000 percent, with over $16 billion in crypto assets kept in their protocols by the end of the year. Ethereum is a long-term, function-oriented cryptocurrency that will help DeFi succeed in the future.

However, many people are waiting for official laws to be adopted before taking action. Although it’s a little too early to predict if Ethereum will be able to overtake Bitcoin in future, it should be noted that in a manner that legacy cryptocurrencies like Bitcoin cannot, Ethereum symbolizes the future of programmable money and smart contracts.

How to Invest in Bitcoin in the UK

Past performance is not an indication of future results.

Visit eToro

Don’t invest in crypto assets unless you’re prepared to lose all the money you invest.

Bitcoin is the largest cryptocurrency in the world and therefore it’s not a surprise that many people are looking forward to investing or trading in this crypto. While this enthusiasm is understandable, it is important that you do your proper research and go with only a reputable brokerage that takes reasonable charges and maintains trust.

Our recommended online brokers are eToro, Coinbase and Binance – you can start your investing by clicking on the links.

For investing in Bitcoin with eToro follow these steps:

Step 1: Create your account with eToro by clicking here.

Step 2: Upload your details and ID: You’ll be required to upload a copy of your passport or driver’s license and proof of address.

Step 3: Next step is to deposit currency into your account which can be done using a debit card or via bank transfer. Purchasing GBP comes with a 0.5% fee.

Step 4: You’ll be able to buy Bitcoin once you’ve validated your account and deposited funds into it. In the search box, type ‘Bitcoin,’ then click ‘Trade,’ and enter the amount you want to invest (in USD). Buying Bitcoin and other crypto has a 1% fee.

Read more about buying Bitcoin here.

Cryptoassets are highly volatile and past performance isn’t an indicator of future success. Invest at your own risk.

Which important events will influence Bitcoin Prices?

2021

The price of Bitcoin hit an all-time high in 2021, with prices over 60,000 USD in February, April, and October. The first two were caused by incidents affecting Tesla and Coinbase, respectively, while the third was caused by an unrelated occurrence. The news by Tesla that it had purchased 1.5 billion dollars worth of the digital coin, as well as the IPO of the United States’ largest crypto exchange, sparked widespread attention.

However, after rumors of government regulation, the world’s most well-known cryptocurrency had a significant correction in April. Another factor, according to analysts, was a power outage in China’s Xinjiang region. This unanticipated occurrence resulted in a drop in Bitcoin hash rate which may have frightened investors into selling their holdings. According to a 2020 study based on IP addresses from so-called hashers who used specific Bitcoin mining pools, China accounted for more than half of all Bitcoin mining. The establishment of a Bitcoin ETF in the United States triggered the third price increase.

For the upcoming years; 2022-25

This year, the rejection of Bitcoin by Elon Musk due to environmental concerns came as a shocker to many crypto enthusiasts. Truth be told, it shouldn’t come as a surprise considering how environmentally challenging ‘proof of work’ consensus mechanism is.

This is where Ethereum and other Blockchain technology such as Cardano may have an edge over Bitcoin. You can read our article on Cardano & its price prediction. This is because they either already use or would use ‘proof of stake’ consensus mechanism in the future. The PoS is environmentally sustainable and at the same time offers more transactions per second as compared to Bitcoin.

Add to this fact that while Bitcoin is only used for storing value, Ethereum, Cardano and other crypto technology have inherent abilities of building DApps, providing infrastructure for building other apps and so on.

Therefore, while Bitcoin may not use value per se, it is expected that Ethereum, Solana and other crypto technology may rise more in the future owing to the additional utilities they offer as compared to Bitcoin. This is why we suggest staking Ethereum and securing additional source of income by leveraging the ‘proof of stake’ mechanism. You can read our article on Ethereum to know more about Ethereum Staking and how it may also be a great bet for future.

Conclusion

According to our experts’ stand, it is quite clear that Bitcoin is expected to witness exponential rise in the upcoming years. It couldn’t be denied that new age players such as Cardano, Solana and other that represent Web 3.0 can also serve as a good investment avenue.

We hope this article helped in understanding key terms such as proof of work, staking, DApps, smart contracts that have a heavy influence on determining Bitcoin price predictions.

FAQs