Bitcoin (BTC) Will Rally To Hit $20K In 2021: Canaccord Analysts
Bitcoin (BTC) prices will surge to $20k in 2021, analysts at Canaccord Genuity have predicted.
Michael Graham and his colleagues at the firm, Matthew Volpe and Alexander Frankiewicz, published a research note on Thursday predicting that bitcoin will climb to hit prices similar to those reached in 2017.
The forecast was sent to Canaccord Genuity’s clients and noted that 2019 has witnessed three “striking” similarities in the top cryptocurrency’s price in the two key periods of 2011-2015 and 2015-2019.
The analysts wrote that although such a simple pattern had “little fundamental basis,” the main takeaway is that bitcoin has tended to rise and fall based on “a four-year cycle of sorts.”
And this cyclic performance tends to also correspond to the bitcoin halving event that occurs every four years.
The “halving” refers to the timeline that allows for bitcoin’s mining rewards to be reduced by half- currently, miners earn 12.5 BTC per block.
According to the analysts:
“Bitcoin has started to form the spring 2019 bottom we began mentioning last year, although a close look at the chart suggests the recovery may be slightly ahead of itself.”
They conclude that if bitcoin maintains the same trend, then it could see “a slow climb” that could end with it hitting its all-time high price of about $20k in March 2021.
The report also takes note of increased activity within the cryptocurrency markets, stating that nearly seven million bitcoins have been moved from being ‘Cold’ and are actively being traded again.
It is virtually impracticable to predict, with certainty, exactly what will happen in the crypto market in the future, but the Canaccord analysts have confidence in their prediction.
They have charted an overlay of the past two “halving-related” performances and concluded that each halving has corresponded with bitcoin’s price seeing a spectacular rise.
As per timelines, bitcoin’s next halving is scheduled to occur on May 23, 2020.
According to the Canaccord team, Wall Street’s growing interest in crypto is another catalyst that will drive bitcoin’s price higher.
The analysts single out “Fidelity’s continued push into the space,” as one of the highlights. They cite the asset management giant’s Fidelity Digital Assets platform and custody service offering as great steps taken by the firm to bring institutional investors into crypto.
They also note that Fidelity recently released a survey report outlining that 40% of respondents from 411 U.S. institutional investors said they were “open to owning” cryptocurrencies and other digital assets in five years’ time.
There is also the “Drop Gold” ad campaign recently launched by Grayscale Investments. The campaign targets digitally native investors who are likely to choose bitcoin over gold as a store of value.
And to sum it up, the Canaccord analysts point out that things are so far looking up, with bitcoin already “one of the best-performing assets of 2019.”
BTC is currently trading at over $7,250 – having traded as low as $3,500 earlier in the year.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.