In this article
Does price prediction work in the cryptocurrency market?
One of the main problems with many cryptocurrency price predictions is that they lack the analytical backing to back up the claims. People who give public forecasts may do so for reasons unrelated to fundamentals. They can simply pursue their own interests.
The cryptocurrency industry itself is inherently difficult to analyze. Even when complex and appropriate analysis is used to predict prices, there will always be many factors that the cryptocurrency community is simply not aware of yet. This, of course, can be said about investing in general, but perhaps even more of a concern in the nascent digital currency space.
Cryptocurrency price prediction is a solvable problem, but not with a single approach and definitely not for all market conditions.
As the great British statistician George H.P. Box, “essentially all models are wrong, but some are useful.” This is especially true when it comes to complex entities such as financial markets. In the case of crypto assets, it is definitely possible to predict the price movement of cryptocurrencies, but no model will be effective in all market conditions.
The models that are used to predict prices in the crypto market have not actually been tested in real world markets and certainly not in crypto. Also, the problem of forecasting is that the cryptocurrency market is still largely formed and predictive models for crypto assets face many problems that are not present in traditional capital markets. From fake volumes to the poor quality of many APIs and datasets.
TOP 5 cryptocurrency predictions for 2021
The latest Bloomberg-Crypto Outlook report suggests that BTC could rise significantly this year. The report says that the cryptocurrency is more likely to approach $100,000 this year than drop to $20,000.
Here is a direct quote from that report.
Roughly $40,000 could be the limit for bitcoin for a while as part of what we see as the bull market in crypto assets is resting. #2 Ethereum is fast approaching #1 market cap status and will be the main driver of the Bloomberg Galaxy Crypto Index in 2021. Bitcoin is more likely to resume rising to the $100,000 resistance level, rather than below $20,000.
Bloomberg expects not only bitcoin to rise this year. The publication believes that the cryptocurrency as a whole is approaching an upward trend. This means that other digital assets such as Ethereum are also likely to rise during the year.
Billionaire Tim Draper Forecast
Billionaire venture capitalist and bitcoin investor Tim Draper sticks to his prediction that bitcoin will hit $250,000 by the end of 2022 or early 2023, despite the cryptocurrency’s wildly fluctuating value.
This is not the first time Draper has predicted the price of the first cryptocurrency to rise. In 2014, when bitcoin was trading at around $500, he said that the coin would rise to $10,000 within three years. According to Coindesk, in December 2017, the price of bitcoin exceeded $10,000, skyrocketing to $18,900 on December 19 before falling to a low of $7,270 in early 2018.
In 2014, Draper purchased about 30,000 bitcoins confiscated by the US Marshals Service on the now defunct Silk Road online black market.
Prediction from a group of experts for Finder
Finder, a major product comparison site, did a study to find out about the prospects for bitcoin.
The panellists included crypto asset managers, heads of crypto exchanges and other service providers, cryptanalysts, university professors and lecturers. Among the various topics discussed was what the price of bitcoin would be at the end of the year and several years from now.
A group of cryptocurrency experts have predicted that the price of bitcoin will rise to $318,417 by December 2025. The most optimistic expert believes that the price of the cryptocurrency will reach $160,000 by the end of the year. Meanwhile, 54% of them believe that hyperbitcoinization will happen by 2050.
Goldman Sachs Forecast
Don’t be surprised if ether becomes the dominant digital store of value
Goldman Sachs says in a note to clients.
The bank believes that Ethereum “currently looks like the cryptocurrency with the most potential for real-world use as Ethereum, the platform on which it is its own digital currency, is the most popular platform for smart contract application development,” the letter said.
This means that, according to Goldman, Ethereum could eventually overtake Bitcoin as the top cryptocurrency.
Sarah Bergstran’s prediction
Sarah Bergstrand, COO of BitBull Capital, predicted in an interview with Forbes that Ethereum will rise to a staggering $100,000 by 2025.
She believes that new developments in the Ethereum network will lead to a staggering increase in the price of the coin.