Despite the fact that Bitcoin has been in a correction phase for about two months, analysts and optimists remain hopeful. Several analysts and Bitcoin advocates have frequently voiced their denial of a bear market, despite the fact that it is not unjustified, most likely in an effort to maintain investor confidence high.
This was reflected in the newly released “Bitcoin Price Prediction 2021” report. According to the conclusions of the analysis, 62 percent of the panelists questioned felt that Bitcoin is not in a bear market. Several variables, including ongoing buying interest, Bitcoin’s price history, and the continued importance of fundamentals, were major signs driving their stance, according to these panelists.
Despite the fact that BTC values were going downwards, new entities continued to join the network, as shown in the graph above. Every day, over 50,000 new entities were detected arriving on-chain, and the Bitcoin network’s weekly net growth was more than that seen at the start of the year when values were beginning to reach new highs.
Other on-chain indicators, on the other hand, cannot be overlooked in refuting these claims. The graph above demonstrates how Bitcoin’s adjusted on-chain volume has been slowly declining in recent months. The daily transaction volume had decreased to about $6 billion from a high of over $16 billion in May, indicating that traders were leaving the network.
According to the above-mentioned analysis, the panelists, who include global experts in the crypto industry, expect that the price of Bitcoin will reach $318,417 by December 2025. This has been ascribed to the occurrence of halving events and inflation.
It is projected that 30% of the US dollars currently in circulation were created in 2020, providing ample fuel for an impending inflation concern. Another explanation for this expected growth could be widespread bitcoin usage. Around 54% of the panelists predicted that “hyperbitcoinization,” or the takeover of global banking by bitcoin, will occur by 2050. However, 25% of respondents predict it will happen considerably sooner, by 2035, and another 20% say it will happen by 2040.
With DeFi offering lucrative and safer alternatives to practically all traditional investment vehicles, and institutional investors showing interest in crypto funds and derivatives markets, DeFi has attracted billions of dollars, with asset management businesses managing billions more. All of these factors point to the inevitable “hyperbitcoinization” of global banking, albeit pinpointing a specific period in the future decades may be difficult.
Big-time investors will not be the only ones to benefit from their investments. Within the next ten years, 33% of the panelists believe bitcoin will become the preferred currency in poor countries. Another 21% believe it will take more than ten years to reach that level of adoption.
Even in the wake of news like El Salvador’s adoption of Bitcoin and Venezuelans adopting it to combat hyperinflation, such emotions may not be entirely accurate. According to a recent assessment on crypto preparedness, developing countries are still far from broad crypto use or being prepared for it.
The lack of regulatory attention, the lack of Bitcoin ATMs, the lack of citizen interest, and other factors all contributed to this. Illiteracy, a lack of internet or electricity, insufficient infrastructure, and government reluctance are some of the additional difficulties that developing countries commonly confront.