Over the last couple of days, Bitcoin hit several milestones. First, it broke the $20,000 margin, which not many believed was possible in 2020. Not only did it reach 20k, but it cruised through, eventually reaching $23,655, its highest price in history.
Rewind to March 2020 and the price of one Bitcoin is only $3,596 at some exchanges. What happened with Bitcoin back them? The COVID-19 pandemic happened. Panic-selling caused the Bitcoin price go plummet at the start of the crisis, however, over summer, it got back on its feet. Then, starting September, Bitcoin entered a bullish cycle.
Despite having some ups and downs (e.g., BTC dropping by $3,000 in November), the bullish trend continued. The big question is whether it will continue in 2021? With holiday spending on the horizon, some believe the price of Bitcoin could go down by as much as 30% in the early months of the new year.
Big Sell-Off Expected in Short Term
According to chief market strategist for Miller Tabak, Matt Maley, it’s very likely that Bitcoin is going to go through a big sell-off in the first part of 2021. In an interview he gave for CNBC’s Trading Nation on Thursday, Maley suggested that about 20-30% drop is almost certain to happen.
People need to be careful as we move into the new year… I think it’s going to be a much deeper sell-off than the 10%-15% ones we’ve seen more recently. I think you’re going to see 25%-30% easily.
Maley pointed out that it might not happen straight after the clock strikes midnight on New Year’s Day. Instead, it could very well start happening a few weeks later.
So, should you sell your Bitcoins straight away? According to Miller Tabak’s trader, it all depends on your plans. In the short run, it could be wise to get rid of Bitcoin, as the price drop seems imminent.
On the other hand, Bitcoin is almost certain to go up in the long run. In fact, Maley believes it’s going to break many of its records in 2021.
Can Bitcoin Reach $1,000,000?
Alexi Mashinsky is another entrepreneur who’s joined the list of Bitcoin enthusiasts certain that we still haven’t seen the best of the world’s most popular crypto. Mashinsky, who’s the founder and CEO of Celsius Network told Yahoo Finance Live that he expects Bitcoin to reach the price of between $30,000 to $35,000 next year.
That’s a pretty conservative estimate when compared to what another billionaire thinks. Mike Novogratz, who’s a self-professed crypto-head spoke about his Bitcoin price projections a few weeks ago, even before BTC broke its record price. In his opinion, it’s not going to be a surprise if Bitcoin gets up to $65,000 in 2021.
The most optimistic crypto enthusiast of them all seems to be John McAfee, who famously said he was going to “eat his own d*ck“ if Bitcoin doesn’t reach $1,000,000 by December 31, 2020.
He’s backed up on that promise since and won’t be eating growing out of his body. The reason is not that he’s changed his stance on cryptocurrencies (although he did call Bitcoin an outdated crypto), but the fact that he’s currently incarcerated in a Spanish prison on charges of tax evasion.