This is not the first time we are discussing where bitcoin could go in 2021. However, things have drastically changed upside down since the bitcoin price made a new all-time high last month. Since then, everybody is in a debate over whether bitcoin will breach the so-called US$100k mark before 2021 end. While that seems far from reality, for now, the BTC price touching US$75,000 by this month-end is evitable if it keeps a good pace throughout.
Bitcoin entered 2021 with a trading value of US$35,000. Throughout the year, it was all bulls and bears for the digital token and its market presence. In the first half of 2021, the bitcoin price skyrocketed to a record high in mid-April. However, it didn't last for long. Every time bitcoin's new all-time high is achieved, it is followed by a massive bear run. The same happened as bitcoin halving also contributed to the decrease in value. Adding to the worry, Elon Musk, the long-time supporter of bitcoin shut his company's door to accept BTC payment for his vehicles over environmental concerns. Siding with the same reason along with extreme energy conception, China also rolled out a ban on bitcoin mining in the country. Since China is the biggest bitcoin farmer in the world, the move greatly impacted bitcoin's price and pushed it to US$35,000 again in June and July. The second half so far has been doing all goods to BTC. Last month, bitcoin reached a new all-time high after its ETF made its debut. This marked a major bounce-back of the cryptocurrency after it suffered severe crashes.
It is not just bitcoin that has come this far and has coexisted with the government financial models. Even other cryptocurrencies like ethereum, dogecoin, tether, etc have managed to make a remarkable stand in the past year. However, many digital tokens follow the price trend of BTC and grow according to that. When bitcoin is down, they too maintain a downward trend and when bitcoin reaches a record high, these other cryptocurrencies follow an upward movement. Therefore, if the bitcoin price breaches the US$75,000 mark by the end of this month, then it indirectly means all other cryptocurrencies will also go through a bull run.
It all started in 2008 when a group of anarchists, libertarians, and other tech-savvy people decided to come up with a disruptive solution for the falling economy that is pegged to government decisions. Later that year, a whitepaper under the name 'Satoshi Nakamoto' hit mainstream, and bitcoin was born in 2009 out of the blueprint provided in it. The original whitepaper begins with a statement, "A purely peer-to-peer version of electronic would allow online payments to be sent directly from one party to another without going through a financial institution." After the successful implementation of a decentralized model, Nakamoto sent 10 bitcoin to Hal Finney and inception a disruptive mode of the financial system to the world.
Since it was born out of the banking crisis and the brink of a massive financial collapse, bitcoin has a stronghold on many individuals' investment portfolios. Yes, people who have a varied opinion on a centralized economy and don't want to comply with the banking system often take bitcoin more seriously and invest in them.
Since Richard Nixon removed the gold standard mark of the dollar, circulation has steadily increased. Owing to the surging circulation, the dollar's value and the position it held as a top fiat currency have also fallen behind. But the scenario is completely different for bitcoin. BTC has a limit, which is mentioned in the whitepaper. Once the limit is touched, investors can't get their hands on the digital token. This makes bitcoin the only asset on the planet that has a finite and fixed supply.
On the other hand, we also have bitcoin halving that could trigger the value of the cryptocurrency. Every time 210,000 blocks are mined, approximately every four years, the reward given to miners for doing the mining work will get reduced to half. Currently, there are 18.5 million bitcoins in circulation out of the 21 million that can be completely mined. So in other words, we will run out of bitcoin in the next few years.
On October 19, 2021, the cryptocurrency market celebrated a milestone achieved by BTC. The first bitcoin ETF made its official debut on the New York Stock Exchange. This contributed to the massive growth, which resulted in new record-high pricing.
Although this is a small move, it has bigger links that connect many dots in the cryptocurrency sphere. The next big thing in the crypto world is institutional or organizational adoption. This is one of the many thumps up signs that bitcoin needed to enter the official trading space. Fortunately, this is expected to trigger the price in the coming days as many institutions will come out and accept bitcoin as a trading option. Besides, organizations will also accept bitcoin payments and use BTC to deliver salaries to employees. If this continues to take different shapes, then breaching the US$75,000 mark by the end of November will be nothing.
Government regulations and energy consumption concerts are the biggest concerns for bitcoin investors. In recent months, China has clamped down on its cryptocurrency industry while the UK has imposed a regulatory ban on Binance. Every time a government regulation came into effect, it had a direct impact on BTC's price. Therefore, the only thing that could tumble bitcoin on its way to US$75,000 is government regulations and sudden changes in the system.
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