Bitcoin Price Prediction: Will the Crypto Market Rebound?
For quite some time, almost every Bitcoin price prediction has had the popular cryptocurrency on an upward trajectory. However, the recent all-time highs were quickly met with a major sell-off and market crash.
Crypto analysts are now predicting a bearish trend going forward. And as you may have expected, Elon Musk is the key player in all of this movement. Let’s take a closer look at the BTC price and what you can expect in the future.
Bitcoin Price Prediction in 2021
Bitcoin’s value went through the roof to begin 2021. In fact, it hit an all-time high of $64,829.14 in April. Cryptocurrencies, in general, have thrived during the COVID-19 pandemic. This includes the push for Dogecoin, Ethereum and many others.
Bitcoin, on the other hand, has led the charge as crypto’s poster child. Most experts made it very clear that Bitcoin was a real investment opportunity to consider. And investors began to listen. Cryptocurrencies have made one headline after another due to the massive increase in interest.
Yet, making a Bitcoin price prediction has always been difficult. And the recent crash tells you everything you need to know. Cryptocurrencies come with extreme vulnerability, uncertainty and volatility risks.
This is where Elon Musk comes into play. The billionaire Tesla founder has been a major supporter of cryptocurrency. However, his stance has slightly changed due to environmental concerns over the increasing use of fossil fuels for Bitcoin mining.
As a result, Musk announced that Tesla would no longer accept Bitcoin as a payment option. A sell-off followed that led to Bitcoin’s price drop.
The popular crypto fell as low as $42,141 for a near 30% drop from recent highs. And this is why analysts are struggling to determine a Bitcoin price prediction.
Since the crash, Bitcoin has slightly rebounded above $44,000. Moreover, it’s important to consider that Bitcoin is still up since the beginning of the year. The price of BTC ended 2020 at $29,111.52.
Is Bitcoin a Worthy Investment?
Bitcoin is the gold standard for cryptocurrencies. That isn’t changing anytime soon. But is it a worthy investment?
Depending on your specific circumstances, you may want to consider adding Bitcoin to your portfolio. However, you have to be cautious. The uncertainty behind cryptocurrencies is growing as the U.S. economy recovers.
The market is shifting and the risks of digital currencies are coming to light. This may lead to tighter regulations in the future.
Therefore, take every Bitcoin price prediction with a grain of salt. The volatility makes it nearly impossible to make a proper projection. As you can see, one tweet by Elon Musk can lead to an immediate downfall and more uncertainty.
How to Invest in Bitcoin
You have plenty of options if you are ready to invest in Bitcoin. For example, the most popular cryptocurrency exchanges include:
Of the list above, Coinbase (Nasdaq: COIN) and Robinhood stand out. But you must do your research and consider the current Bitcoin price prediction before investing your hard-earned money. Robinhood provides commission-free trading as the most popular mobile application for investors. Coinbase gives its users the ability to invest in and earn Bitcoin as they learn more about cryptocurrencies.
To protect your crypto investments, it’s always important to consider the security measures each of these platforms has in place.
Investing in Cryptocurrencies
The crypto market has taken an unexpected hit over the past few weeks. And this has led investors to reconsider their stance on Bitcoin. Elon Musk isn’t accepting Bitcoin any longer. But he’s still riding high on Dogecoin.
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Keep a close watch on Bitcoin’s movement over the coming months. The current Bitcoin price prediction is showing a bearish trend, but only time will tell if this popular cryptocurrency can make a complete recovery.