2020 was an interesting year in cryptocurrency, especially for the king of Crypto: Bitcoin. During 2020 we saw how the value of Bitcoin increased around seven-fold, hitting a new all-time high in November. It later went on to blast through that all-time-high and set new record prices almost every day.
On January 1st, 2021. On January 5th, 2020, 1 BTC was worth around 7,500 USD. Scroll forward exactly one year to January 5th, 2021, and the price had gone up to almost 34,000 USD. So what’s going to happen now? Has Bitcoin’s price peaked, meaning it’s too late to buy some and expect the price to go even higher?
On the other hand, is it a bad idea to buy Bitcoin now because the price is expected to crash? Interest in Bitcoin resurged heavily in 2020, so a lot of experts have analyzed and made predictions. Read on to get a Bitcoin Price Prediction for 2021, 2022, and 2025 to help you decide whether to invest in Bitcoin or not.
Bitcoin Historical Price Analysis
Being the first successful cryptocurrency means that there is a lot of history behind its price. Bitcoin launched in 2009, but during those early years, it was known mainly by computer enthusiasts and was almost worthless.
Let’s remember for a moment that on May 22nd, 2010, a guy from Florida made a real-world purchase with Bitcoin for the first time; he paid 10,000 BTC for two Papa John’s pizzas (At the moment of writing this article, those 10,000 BTC would be worth almost 343 million USD).
Of course, Bitcoin has come a long way since those early years, and we can’t really compare the current value with that distant past. The price of Bitcoin really began to take off in 2017 and was worth just under 20,000 USD on December 17th. After that peak, the price dropped sharply and was worth only around 3,000 USD exactly one year later, on December 17th, 2018. 2018 was a horrible year for crypto in general; it wasn’t just Bitcoin’s price that suffered.
The price recovered somewhat during the first half of 2019, reaching around 12,000 USD during late June/early July. It then generally kept in the 8,000-9,000 USD range for the rest of the year, starting 2020 at around 7,500 USD. The price then generally trended downward, hitting its lowest point for 2020 on March 14th, at just over 5,500 USD. After that, the price began rising, spending a few months hovering in the 9,000-10,000 USD range, even crossing the 10,000 dollar barrier a few times.
But since mid-September, the price has skyrocketed. It broke the previous all-time-high on December 17th, 2020, and continued to set new record highs on December 19th, 21st, 27th, and 30th. 2021 began with a price of just over 29,000 USD and kept climbing to set a new all-time high on January 8th, 2021, with a price just under 42,000 USD.
Bitcoin (BTC) Current Price, Market Cap & Supply Details
At the time of writing this article, 1 bitcoin is worth just over 36,000 USD meaning the price has dropped around 14-15% since January 8th’s all-time-high. It remains the undisputed king of cryptocurrencies according to market cap, with a capitalization of over 676 billion USD and over 57.5 billion dollars’ worth of bitcoin traded in the last 24 hours.
Bitcoin is a proof-of-work cryptocurrency with a maximum supply of 21,000,000. That means that there will only ever be 21 million bitcoins in existence. Right now, 18,602,468 bitcoins have been created (“mined”), meaning that 89% of all the bitcoins that will ever exist are already in circulation.
Bitcoin (BTC) Future Price Forecast Predictions
We all know that nobody can accurately predict the future for anything. Much less so with something so volatile as the cryptocurrency market. But there is a growing interest in cryptocurrencies as a possible store of value. During these first days of 2021, this interest has grown because Bitcoin actually outperformed gold as a store of value in 2020.
Now people are eager to know how cryptocurrencies are expected to perform in the future. Have they already peaked, or is the price expected to go even higher? Bitcoin’s price dropped dramatically after December 2017’s then all-time-high. Is it likely to happen again?
US investor Cameron Winklevoss, way back in December 2013 (when 1 BTC was less than 500 USD) that bitcoin’s price would go up to 40,000 USD “faster than anyone expected it to.” And it did just that in a little over seven years to the date.
Heisenberg Capital co-founder Max Keiser predicted in 2018 that Bitcoin would be worth 28,000 dollars at the end of 2020. This prediction turned out to be almost spot-on. Other experts were way off. Predicted final prices for 2020 ranged from almost worthless to almost 2,000,000 USD.
So let’s take a look at what experts are predicting this time around.
Bitcoin Price Prediction 2021
2021 is expected to be an interesting year for Bitcoin. Its price was climbing steeply during the first days of January, hitting its all-time-high on January 8th at just over 42,000 dollars. But then the price dropped around 20% in just 36 hours. By January 11th, the price had dropped to about 31,500 USD.
While a significant drop from the ATH, that price was a lot higher than at any point in 2020. Predictions for the rest of the year vary a lot from expert to expert, but most agree the price might drop during the first half of 2021 (though not as sharply as in 2018) before recovering in the second half. Most predictions place the price of Bitcoin at around 60,000 USD at the end of December 2021.
But remember Max Keiser? The guy who predicted the 28,000 USD price in 2018? He is now predicting that Bitcoin will close 2021 at around 220,000 USD. We’ll have to see if he can be as accurate again.
Bitcoin Price Prediction 2022
Bitcoin’s price is expected to keep rising in 2022, generally holding in the 50,000-60,000 USD price range, with a further increase at the end of the year, closing 2022 at just over 70,000 USD.
Bitcoin Price Prediction 2025
Many experts say that the price of Bitcoin is expected to break the 100,000 USD barrier in early 2025 and hold steady at just over that price during most of the year. It could close 2025 at about 103,000 USD.
Is Bitcoin A Good Investment?
Recently, there has been a lot of interest in Bitcoin as a possible investment or store of value. While countries worldwide are restarting their economies in the wake of the COVDID-19 pandemic, there have been many announcements about central banks printing more fiat currencies.
However, the printing of unbased currencies is a known major component of inflation, so many of these fiat currencies are expected to devalue during 2021 and 2022. People aware of this are looking to store their funds in a form that won’t lose its value (and if it happens to increase in value, so much the better).
In 2020 Bitcoin outperformed gold as a store of value. In other words, people who stored their funds in Bitcoin gained more than those who did so in gold. So Bitcoin was a great investment in 2020.
But what about 2021 and beyond? Despite the volatility of the cryptocurrency market, bitcoin is expected to generally increase in price for the next few years, so it still looks like a good investment in the mid and the long term.
How To Buy Bitcoin
If you’ve been doing your homework, maybe that pointed you to this article. And maybe we’ve all convinced you that buying some Bitcoin is a good investment opportunity. If you’re new to crypto trading, then you’re probably wondering where you can get some.
Most cryptocurrency transactions happen on cryptocurrency exchanges. But many of these exchanges are crypto-only, meaning you can only trade one cryptocurrency for another.
If you don’t have any crypto tokens, you’ll want to look for an exchange that offers fiat-to-Bitcoin transactions. Coinbase is a good place to start. They allow you to use several fiat currencies (including US Dollars, Euro, and British Pounds). The interface is pretty straightforward and user-friendly.
If you want an easy and fast way to change USD to Bitcoin, then Changelly is also an excellent option:
More Information About Bitcoin
What is Bitcoin?
Bitcoin is the name of a blockchain-type distributed ledger and the native cryptocurrency that powers bitcoin blockchain. Bitcoin was the very first blockchain to be launched successfully. It was created by a yet-unidentified person or group of people going by the name “Satoshi Nakamoto” in 2008 and started running in 2009.
The success of the bitcoin blockchain-inspired the creation of all other blockchains and cryptocurrencies that we know today. It is still the world’s number one cryptocurrency in terms of price, market cap, and trading volume.
Who is behind Bitcoin?
As mentioned before, Bitcoin was started by the person or people working under the name “Satoshi Nakamoto.” However, Nakamoto himself (or themselves) hasn’t been in charge of Bitcoin for quite some time. He transferred control of the blockchain to Gavin Andersen in mid-2010. But Andersen himself has been mainly involved in other projects.
Today, the bitcoin blockchain is owned and controlled by no one. It’s an open-source project maintained and contributed to by many developers from all over the world.
Bitcoin is the oldest and most successful cryptocurrency so far and is likely to remain so for a long time. Cryptocurrencies are one of the most divisive topics in economy and finance today. Some experts state that “Bitcoin is the new gold,” and others saying that “the very idea of Bitcoin having any value is ludicrous”.
The truth is that cryptocurrencies are changing the world of finance. Even traditional banks and investment companies are starting to get involved.
While investments by the big names in finance might increase confidence and value for cryptocurrencies, there is a downside. While most governments have generally not been too keen on Bitcoin and other altcoins, and crypto trading is banned in countries like China, there usually hasn’t been any major action.
But as banks and investment companies get involved, another issue has been gaining a lot of speed lately: regulation. Governments are putting more and more pressure on crypto exchanges towards regulating the use of cryptocurrencies. And one of the major points that attract a lot of users towards crypto is, precisely, that they offer freedom from the traditional banking and financial industries. Many of these users might lose interest and confidence in crypto if they feel that they’re too regulated.
We’ll only get the answers to all these questions as the months go by. Many regulations and the predicted debasing of fiat currencies are expected to start in 2021, so it promises to be an interesting year. But, all in all, most experts agree that Bitcoin will continue to increase its value this year and for the next few years.
So, what do you think? Are you one of the believers in the increasing value of Bitcoin or among those who consider it worthless? Did this Bitcoin price prediction help you decide whether to invest or not? Do you own some Bitcoin, or are you planning on getting your hands on some soon?