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Bitcoin price jumps, but how high can it go?

  • April 13 2021
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Bitcoin price jumps, but how high can it go?

By Cameron Micallef
April 13 2021

A reduction in supply and an increased demand from new types of investors have continued to push the price of bitcoin higher over the weekend, with a leading analyst now predicting that the price could reach over US$400,000 ($525,348) by the end of the year if history repeats itself. 

Bitcoin price jumps

Bitcoin price jumps, but how high can it go?

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  • April 13 2021
  • Share

A reduction in supply and an increased demand from new types of investors have continued to push the price of bitcoin higher over the weekend, with a leading analyst now predicting that the price could reach over US$400,000 ($525,348) by the end of the year if history repeats itself. 

Bitcoin price jumps

The price of bitcoin surged back above the US$60,000 ($79,000) over the weekend, settling marginally below its all-time high of US$61,500 ($80,736). 

According to Bloomberg’s Crypto Outlook, the price of bitcoin could reach US$400,000 if patterns from previous “halving event” repeat themselves. 

The report noted that if bitcoin does repeat its highs in 2013 (roughly 55x gain) and 2015 (roughly 15x gain), after a period of low volatility and a halving event, the price of the coin by the end of the year could reach US$400,000.

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“The technical outlook for bitcoin in 2021 remains strongly upward, if past patterns repeat. Common companions for strong annual rallies in the first-born crypto – low volatility and halvings – are aligned favorably,” the report noted. 

“To reach price extremes akin to those years in 2021, the crypto would approach US$400,000, based on the regression since the 2011 high.”

“In September, 180-day volatility on the crypto matched the all-time low from October 2015. From that month’s average price, bitcoin increased a little over 50x to the peak in 2017,” the report explained. 

The rapid rise of the bitcoin’s popularity is heaping further pressure on US market makers to add a bitcoin ETF, which is tipped to help lift the price of the digital asset.

“Even with speculative excess in the broader crypto market, we believe bitcoin is less prone to a sustained trip up. The imminent launch of bitcoin-oriented US exchange-traded funds is another bullish underpinning,” Bloomberg’s report said. 

eToro’s market analyst, Simon Peters, noted that the price of the digital currency jumped over the weekend as supply was limited and new investors entered the market.

“Bitcoin’s price has surged once again, thanks to a number of factors, including new demand from institutional investors and wealth managers offering crypto asset exposure to clients,” Mr Peters said.  

“Meanwhile, a decline in on-exchange reserves is reducing supply as more investors move the currency to their own wallets.”

Bitcoin’s peer etherum also continued strong gains for 2021, hitting a record high of US$2,151 ($2825) last week, holding steady at US$2,134 this morning. 

Bitcoin price jumps, but how high can it go?
Bitcoin price jumps
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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