Cryptocurrencies have been on a positive streak this year (2021), even though trading has been very unpredictable. Bitcoin (CRYPTO: BTC), the most valuable cryptocurrency by market capitalization, is no exception to the trend.
A Roller-Coaster Year: In November last year, 2020. Bitcoin broke out of a consolidation phase and embarked into a robust rally that lasted for the majority of 2021, with intermittent corrections.
Bitcoin surpassed the $61,000 threshold in mid-March after ending 2020 at $29,001.72 but dropped back amid profit-taking. After a period of consolidation, the cryptocurrency gained traction and soared to a high of $64,863.10 on April 14.
Bitcoin reversed course and fell to a low of $29,360.96 on July 20, a peak-to-trough drop of almost 55 percent, putting the cryptocurrency in the bear market territory.
Following the late-July bottom, a small rally ensued, but it lacked the strength to take Bitcoin past its prior high. After reaching a double bottom and rallying to new highs in late October, the cryptocurrency took off once again. The launch of the first Bitcoin-linked ETF – ProShares Trust – ProShares Bitcoin Strategy ETF BITO -0.19% + Free Alerts – stoked the optimism this time around.
Bitcoin has paused achieving a record intraday high of $68,789.63 on November 10th.
How it Has Performed in the Past In December: Since 2015, every year but 2018 and 2019 has seen a rise in Bitcoin’s December price, except for 2018 and 2019. Bitcoin experienced a bear market in 2018, falling from $19,783.21 at the end of 2017 to $3,742.7 after the year.
The cryptocurrency’s recovery in 2019 was primarily limited to the first half of the year, leaving it in the red in December.
Bitcoin has gained roughly 106 percent so far in 2021. If 2021 turns out to be a year like 2016, 2017, or 2020, when Bitcoin saw big gains in December, a moderate run-up in the final month of the year could emerge, adding to the year’s gains.
A scenario similar to 2018 is unlikely to occur, given the crypto’s substantial year-to-date gains, and a pullback of more than 100% to get it into negative territory.
It’s impossible to rule out a repeat of the trend experienced in 2019. Even if Bitcoin continues to fall, it may still end the year with significant gains.
According to a panel of 50 fintech experts polled by price comparison website Finder.com, bitcoin would peak at $80,021 in 2021 before completing the year at $71,415, according to a panel of 50 fintech specialists polled by price comparison website Finder.com. Bitcoin will end the year with a gain of roughly 146 percent if the projection is correct.
On Nov. 14, quant analyst PlanB maintained his prediction that Bitcoin would touch $98,000 by the end of November and $135,000 by the end of the year.
JPMorgan Chase & Co., a New York-based investment bank, is becoming more bullish on Bitcoin. According to Business Insider, which cited an expert at the firm, the cryptocurrency might surge to $146,000 in the long run if volatility subsides and institutions gravitate toward it and prefer it to gold in their portfolios. The idea that Bitcoin could turn into an inflation hedge is increasingly gaining traction in the market.
The actual year-end trend, on the other hand, is dependent on several other factors, including China’s attitude toward mining, mainstream adoption, and the volatility created by whale trading.
At the time of writing, Bitcoin was trading at $59,895.27, up 3.58 percent.