The crypto industry does not stop its rapid growth. At the same time, most digital assets managed to grow significantly against the dollar. As of today, the rate of the first cryptocurrency has reached a new historical high — $61,683.
Now cryptocurrencies are as popular as never before. Many people are just now starting to seriously reflect on investing in digital coins. In late 2020 – early 2021, institutions began to actively enter the market. Recall Elon Musk’s tweet about buying BTC for $1.5 billion. Then the rate of the first cryptocurrency grew by $7,000 in just one hour.
So in this article, we will talk about the fate of three cryptocurrencies (BTC, LTC, DASH) in detail and try to understand what may await them in 2021.
Bitcoin in a bullish trend
This is a rare case when analysts are so united in their predictions for the price of BTC. While the target values for the forecasted value of bitcoin vary, everyone seems to be optimistic about the digital gold prospects for 2021.
Tom Lee, the partner at Fundstrat Global Advisors, expressed the opinion that Bitcoin will replace gold.
Michael Novogratz believes that the BTC rate will reach $65,000 this year. Considering that the current rate is $58,870, this is quite possible even in the short term.
Novogratz expects the bitcoin shortage to drive the price up in the coming years, as bitcoin holders begin to view it as a store of value rather than a sorely speculative asset.
According Willie Wu and PlanB, the creator of the Bitcoin forecasting model Stock-to-Flow (S2F), the BTC rate can reach $200,000-300,000 by December 2021.
The S2F counts the supposed price of bitcoin in 2021, taking into account the decrease in its supply and the increase in demand. As the profit from mining Bitcoin is halved regularly, the supply is gradually dwindling. Given the rising global inflation, this could boost demand for bitcoin and cause a sharp jump in its price.
The bitcoin price hovered around $640 during the second halving in July 2016. It grew to an all-time high of $20,000 after a while. If this scenario repeats, Bitcoin could increase $100,000 – $288,000 by December 2021.
Bloomberg analyst Mike McGlone has shared yet another upbeat look on Bitcoin price predictions for 2021. He claims the cryptocurrency upward trend has finished and sets the $170,000 level for the BTC price for 2022.
However, the most optimistic view was expressed by Citibank analyst Tomas Fitzpatrick. He believes that Bitcoin will skyrocket in 2021, reaching the $318,000 target. He explains his prediction with Bitcoin’s historical movements. Bearing in mind the exponential rise in the price of Bitcoin in 2010 and 2011, Fitzpatrick believes the same will happen in 2021.
He also mentions that the FR’s intervention and near-zero interest rates imposed to minimize the impact of the coronavirus pandemic has caused a spike in inflation.
DASH: focus on broad masses
The beginning of 2021 was not as rosy for the DASH cryptocurrency as for other coins. Some large exchanges, fearing problems with financial regulators, delisted anonymous cryptocurrencies in advance. DASH fell on this list. The 1 DASH to BTC rate has dropped significantly during that time. However, the DASH price rose against the US dollar after a while.
The main problem with the DASH project is insufficient marketing. If you read the crypto news, you will notice that this project is not covered properly. However, this does not mean all is lost. DASH has already successfully survived two protracted bear markets. From a technical point of view, it is in no way inferior to BTC and in some sense even surpasses it.
To date, the DASH rate is only $225. This is 86% lower than its historical high recorded in December 2017. At the moment, the coin is highly undervalued, so experts advise taking a closer look at it.
Litecoin: fast and available
While we can’t call Litecoin the most efficient cryptocurrency of the year, it has never left the top 10 most popular crypto assets, and things are not likely to change in 2021.
LiteBringer is the first decentralized fantasy RPG game based on Litecoin. Each player’s turn is a transaction, and the launch of the game benefited the entire blockchain. The number of Litecoin transactions skyrocketed to over 130,000 right after the launch of the game.
The increased performance can serve as a positive price driver. CoinSwitch analysts predict that the LTC rate will surpass the $600 mark in 2021. At the time of this writing, one LTC costs $206.
Many experts express roughly the same opinion that 2021 will be a very successful year for the crypto industry. Some even have tremendous growth prospects. If you want to succeed in crypto investment, we strongly suggest choosing your assets carefully and making sure to diversify your portfolio. This approach will increase your chances of success and protect you from losses.