Bitcoin has rocketed through October, as investors are energized by the launch of the first bitcoin futures exchange-traded fund (ETF) in the United States, as well as new inflation fears.
The bitcoin price has increased by around 40% since this time last month, reaching an all-time high of around $67,000 earlier this week—$2,000 per bitcoin higher than its April peak.
Now, a panel of 50 bitcoin and cryptocurrency experts predicts that the price of bitcoin will continue to rise through 2021, reaching highs of around $80,000 before soaring to $250,000 by 2025 and a staggering $5 million per bitcoin by 2030.
“As bitcoin continues to mature and grow in value, usability, age, and trust, it will behave less like a growth stock and more like a gold-like store of value,” said panelist and CoinFlip founder Daniel Polotsky, who believes bitcoin will end 2021 at $80,000. “Bitcoin will eventually dethrone gold as the king of safe-haven assets, and hopefully this will happen by the end of the decade.”
The panel, assembled by personal finance comparison site Finder, was asked to forecast the bitcoin price from late September to early February—prior to bitcoin’s most recent break out.
The group of crypto analysts, researchers, and entrepreneurs forecasted an average bitcoin price of $80,021 in 2021 before the year ended at $71,415. Panelists predict that by the end of 2025 and 2030, the price of bitcoin will have risen to an average of $249,578 and $5.2 million, respectively.
“The bull run is different this year,” said panelist Gunnar Jaerv, chief operating officer of First Digital Trust, who predicts a bitcoin price of $70,000 by the end of 2021. “More innovations, more regulatory involvement (despite FUD, or fear, uncertainty, and doubt), and the ecosystem and infrastructure puzzles are coming together quite nicely.”
However, not everyone on the panel is optimistic about bitcoin’s future. John Hawkins, a senior lecturer at the University of Canberra, believes it is time to sell bitcoin, warning that it is a speculative bubble that will eventually burst.
“A bitcoin price collapse could be the result of disillusionment with all private crypto (with the possible exception of stablecoins with genuine backing) as central bank digital currencies demonstrate they are the future of e-currency, or it could simply be because ethereum (or, if it ever launches, Facebook’s diem) is regarded as the superior crypto.”
This year, the combined crypto market has skyrocketed, becoming a multi-trillion dollar market as investors bet bitcoin will eventually replace gold as a major store of value and ethereum and other smart contract blockchains will help form the foundation of a future digital economy—pointing to their use in decentralized finance (DeFi) and non-fungible tokens (NFTs).
The ferocious crypto rally, which came after governments flooded financial systems with cash to mitigate the economic effects of coronavirus lockdowns, has prompted some in the crypto space to warn of a correction.
Earlier this week, the CEO of bitcoin and cryptocurrency exchange Binance warned crypto traders to expect “very high volatility.”
“Expect very high volatility in crypto over the next few months,” said Binance CEO Changpeng Zhao, also known as CZ, on Twitter.