Bitcoin (BTC) could climb back to 20,000 USD

The financial consultancy Canaccord Genuity forecasts that Bitcoin (BTC) could climb back to a price of 20,000 US dollars by 2021, according to an analysis on 9th May.

The financial consultancy Canaccord Genuity forecasts that Bitcoin (BTC) could climb back to a price of 20,000 US dollars by 2021, according to an analysis on 9th May.

The forecast is based on the similarity of the price developments in the period 2011 – 2015 and 2015 – 2019. Although the overall price developments in the periods mentioned are different, the price developments over 4 years show strong similarities, from which it is deduced that the current price will make a similar movement until the end of 2021, which would raise it to 20,000 US dollars. This can be seen from the chart below:

Comparison of the Bitcoin share price performance in the periods mentioned. Source: Canaccord Genuity

As a possible reason for this development, Canaccord Genuity mentions the termination of the so-called “block reward”, which is halved after 210,000 blocks. So far, this halving has occurred every four years, which leads financial advisors to assume that there is a connection here. However, the forecast warns that this is merely an observation:

In early 2018, Michael Graham, an analyst at Canaccord Genuity, commented on the cryptographic markets and said that increasing regulatory efforts by regulators would lead to a temporary disruption of pricing mechanisms.

Michael Novogratz, Managing Director of Galaxy Digital, was even more daring this week, predicting that Bitcoin could climb above its previous record of $20,000 by the end of 2020. Novogratz did not give a concrete reason for this assumption, but noted that the market-leading crypto currency is currently booming, clearly outperforming the competition.