Bitcoin’s price has crossed the $54,000 (USD) mark, again.
With BTC’s recent all-time high of $58,000 in February, the price has since crashed all the way to the bottom at $42,000, before correcting in a span of two-three weeks now.
Bitcoin’s price movement is still very much in a bullish cycle with many analysts even predicting that the price per coin will hit the $100,000 mark if not even more by the end of this year.
I don’t think the price of Bitcoin has anything to do with the 2017 crash anymore. Because this time around, with many of the institutions owning the Bitcoin and the retail drive even better, BTC’s definitely here to stay and going to further increase in price, over time.
Bitcoin Price Movement Since The Start Of 2021
Before we proceed any further, let’s quickly take a look at the Bitcoins price action since the beginning of 2021.
We have just stepped into the month of March now and the price per BTC is already back to $54,000 levels.
The price per Bitcoin on Jan 1st, 2021 was around $29,000 USD. Since then, the price has increased by roughly $30,000 or almost doubled in a mere span of 2 months.
BTC Price chart since the beginning of the year below: (Jan 2021 – Till date)
As you might have noticed, BTC’s price movement has been rather steady upwards than the decline. (nice bullish trend). And corrections are always a healthy sign in the market.
Even though the price is extremely volatile, you don’t see the sudden massive drops and crashes.
Also, this year, in Feb, Bitcoin officially crossed the 1 Trillion market cap when it hit the ATH of 58K.
The daily volume is great as well at 52B changing hands per day.
What Will Bitcoin’s Price Be By The End Of 2021?
In this section of the post, I’ll honestly try to uncover the truth in terms of Bitcoin’s predicted price for the end of 2021.
Of course, I will try to use the most reliable and trusted sources for this prediction.
Credit: PlanB (Twitter)
The Twitter account PlanB has close to 300K followers and is one of the most reliable analysts of the Bitcoin price movement.
If you see the above S2F (Stock to Flow) model outlined by him, BTC is well on track to cross the $100,000 USD mark this year. If not more.
Here’s PlanB again with Bitcoin’s 200-day moving average and predicting it should hit the $100,000 mark by the end of this year.
Probably even sooner than the end of the year, by mid-October.
Credit: Danny Scott
Danny Scott is yet another famous Bitcoin price analyst. As per him, there are more than 822,314 addresses in the world now holding 1+ Bitcoin.
Look at that chart with the increase in the number of addresses over time. Now, that’s the number of people holding at least 1 BTC.
With the increasing number of people holding at least 1 Bitcoin and hedging it against inflation, the price will only go up further. Fewer supply vs. More demand.
Invest In Bitcoin Or the Mining Stocks?
This one’s a fair ask – whether to invest in BTC, the actual coin or the mining stocks which act as the proxy to holding a coin.
Remember, by holding (or storing) BTC you are always at the risk of losing it to hackers.
Even with the increased security measures, many have lost their coins. Bitcoin’s a pretty hot market right now and hackers are everywhere trying to access your vaults. Also, you need to make sure to remember the crypto key and secure it safely. It’s not robust like a bank’s vault. So better be sure, than sorry!
With the entry of the mining stocks, you no longer have to worry about holding the coins.
If you ask me, I’ll say invest in both. But you have to learn first, coz storing the BTC in the right secured way is extremely important or you might end up losing the inventory. There’s a bunch of excellent YouTube videos on how to buy and store Bitcoin.
By far, Andrei nails it. Do watch this video, it’s too good if you’re planning to buy Bitcoin for the very first time. (In fact, the video is must watch for everyone, if you want your Bitcoin’s to be safe, sound and making money! Just kidding.)
BTC Mining Stocks
Moving on, Bitcoin mining stocks act as a proxy to the coin itself.
Coz all these mining companies do is to mine and HODL the coins, for it to appreciate in price (held coins) and sell later.
BTC mining stocks are performing crazy right now with 500%+ returns in the past 6 months, some have even returned a whopping, jaw-dropping 2000% over 3 months! That’s the crazy part of all this!
So if you really feel investing in Bitcoin is a hedge against inflation, then go ahead like Tesla and Square, allocate a percent of your total investments (not more than 5%) to BTC.
You have three options to choose from:
Hold the actual coin in a digital vault
Hold the coin and buy the mining stocks (Hut 8, Bitfarms or Hive Blockchain)
- Buying the mining stocks and worrying less about securing the coin. (let the miners take care of securing the coin, right?)
Also, another option to look at is Ethereum.
With Ethereum DeFi and increasing transactions over time, Ethereum is already mainstream along with Bitcoin.
Ethereum is in fact next only to Bitcoin in terms of Market Cap.
News is that with EIP-1559, Ethereum is definitely moving into Proof Of Stake (POS), from Proof of Work (POW), that is you’ll no longer be able to mine Ethereum going forward. (Sorry Hive!)
Simply put, pick either Bitcoin or Ethereum, I am sure the price will appreciate over the coming years, but do not invest more than 5%. If your portfolio is still extremely small, then allocate even less probably at 1% to minimize the risk involved.
Always remember, blue-chip stocks are time-tested and the right way to go to build your wealth. Definitely not these cannabis or crypto stocks! Examples of Blue-chip stocks: Apple, Microsoft, Google, Amazon, TD Bank, CIBC, BMO etc.
With the increasing awareness all around about Bitcoin and its price, I do feel that BTC’s here to stay and go more mainstream, with time.
With the dollar value going down every day, hedging against it in terms of Gold or Bitcoin is optimal to secure your money from inflation.
Bitcoin is already mainstream with many institutional players adopting it and holding it in their balance sheets now.
But, always make sure to minimize the risk in these investments and continue holding the evergreen blue chips such as Apple and Microsoft for the longer term to make the maximum gains the right time tested way.
Thanks for reading, please let me know your thoughts and comments below.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.