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Bitcoin, fresh out of one of the craziest years in its short history, suddenly soared again, breaking through the psychological level of $ 30,000 per bitcoin and bringing the total value of bitcoin to over $ 600 billion.
The price of bitcoin has risen nearly 10% in the first two days of 2021 alone, putting it in polling position to become one of the top performing assets of the year and helping it eclipse the market capitalization of payments giant Visa.
Now, as the bitcoin and cryptocurrency community applauds the latest price spike, investors are already wondering how far the rally will go – and if bitcoin will overtake Tesla anytime soon.
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Bitcoin started 2021 with a bang, climbing around 10%, bringing the price of bitcoin to $ 30,000 … [+]
SOPA / LightRocket images via Getty Images
“The massive increase in the price of bitcoin since Christmas might just be the start of the next bull cycle in digital assets,” said Marc Bernegger, bitcoin pioneer and board member of Crypto Finance Group. “Compared to the past, there are not primarily retail investors buying digital assets, but more and more institutional investors who see bitcoin as a new emerging asset class.”
The price of bitcoin has risen 20% since December 25, adding gains of over 300% for 2020. The Bitcoin boom, taking it far beyond its 2017 high of around $ 20,000 per bitcoin, was triggered by PayPal
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The rally has taken the combined market value of all Bitcoin tokens in circulation from less than $ 200 billion in October to over $ 600 billion now, with bitcoin exceeding Visa’s $ 511 billion market cap this week.
Bitcoin is now on the verge of surpassing the $ 668 billion value of Elon Musk’s electric car company, Tesla, although Tesla has seen its value climb at a similar pace to bitcoin in recent months as the Investors piled up in the stock prior to its introduction into the S&P 500.
The price of bitcoin would have to climb to $ 36,000 for the total value of bitcoin to exceed Tesla’s current market cap – something many in the bitcoin and cryptocurrency community expect to happen sooner rather than later.
The price of bitcoin climbed through December and has more than four times in the past 12 months.
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Ryan Selkis, the founder of crypto data firm Messari, highlighted his October prediction that bitcoin will be worth $ 150,000 per token by the end of 2021 when asked about Bitcoin’s outlook.
That would give bitcoin a market cap of $ 2.7 trillion – surpassing Facebook’s $ 778 billion, Google’s $ 1.1 trillion, Amazon’s
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“My opinion is that one bitcoin will be worth over a million dollars this decade,” Cory Klippsten, general manager of the Swan Bitcoin bitcoin buying app, said via Telegram. “I have no idea how far it will take to get to this level, however, and I advise against listening to anyone who says they are doing it.”
If bitcoin eventually reached a price of $ 1 million per bitcoin, the total value of bitcoin would be over $ 18 trillion.
However, Selkis warned potential investors to “have a plan and stick to it because otherwise your emotions will take over” if the price of bitcoin suddenly drops.
The price of bitcoin is very volatile and is known to swing in double digit percentages within minutes. The price of bitcoin fell to less than $ 4,000 per bitcoin in March amid the wider coronavirus sell-off before rebounding rapidly.
While many bitcoin and crypto investors expect to see a correction in the near future, most are extremely bullish by 2021.
“I wouldn’t be surprised to see a healthy short-term correction after hitting several new all-time highs in a matter of days, but due to massive demand from professional and non-speculative investors, I’m still pretty positive for the medium term. And especially in the long term, ”Bernegger added.
Klippsten also cautioned potential investors to do their research before entering the bitcoin market.
“As always, it’s best to invest in what you know, bitcoin is no different,” said Klippsten, who used Swan Bitcoin to raise awareness of how cryptocurrency works.
“The value that people choose to store in the bitcoin protocol is generally correlated with their understanding of bitcoin. If you buy a lot of things that you don’t understand, you’re much more likely to buy high and sell low. So think about buying bitcoin as part of your education process, rather than placing a trade in the hope of a quick profit. “
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