Bitcoin price rises to $225,000 by the end of 2021

October 20, 2020 John Bitcoin 0

Source: Wit Olszweski – Shutterstock

  • Bitcoin Bull Anthony Pompliano forecasts a Bitcoin price of $225,000 by the end of 2021.
  • Other analysts state that Bitcoin’s fundamentals are currently strong and a price increase is likely.

The Bitcoin price has risen again to its initial level of just over $11,400 after the short-term setback following the announcement that OKEx is being investigated by Chinese authorities. At the time of writing, Bitcoin stands at $11,441 and has increased by 0.45% in the last 24 hours. The market capitalization has increased from $208 billion to $211 billion.

Co-founder of Morgan Creek Digital Assets, Anthony Pompliano, is bullish for Bitcoin and revealed in his recent “Investor Letter” that he believes BTC could rise to $225,000 by the end of 2021. With the FED’s current monetary policy of 0% interest rates and a constant flood of new fiat money, Bitcoin and gold have benefited greatly in recent months:

The combination of the Fed’s asset price manipulation and inflation fears has driven gold and Bitcoin to drastically outperform equities and other commodities.

According to Pompliano, the current signs are clear: more and more companies like Square or MicroStrategy have started to hold Bitcoin as a reserve currency in times of advancing inflation as an alternative asset in their own portfolio for the long term.

Most recently, MicroStrategy invested $425 million and purchased more than 21,000 Bitcoins to hold BTC as a long-term reserve currency. Tech giant Square also purchased Bitcoin for $50 million, increasing the inflow of institutional investors into the Bitcoin market. Pompliano sees the last halving in particular as a decisive catalyst for a massive price increase:

Historically, these supply shocks have led to significant price increases of 20X+ in the following 18 months post-halving.

He goes on to explain that 60% of all new Bitcoin has not changed hands for over a year. According to his macro factor analysis, this is the strongest evidence of a bullish view of large Bitcoin whales and an impending price increase. Furthermore, numerous heavyweights in the tech and finance industry will enter the market in the coming months because they do not want to miss the next bull run (“Fear of Missing out = FOMO”):

Many investors will look at the historical price increase of the digital asset and believe they ‘missed it.’ That couldn’t be further from the truth in my opinion. I believe we are at the start of another boom cycle in Bitcoin, which is likely to drive us 10-20x higher in the 15-month window.

Bitcoin fundamentals remain strong

Analyst Josh Rager noted in his latest Bitcoin price analysis that BTC has recently been rejected several times along the $11,500 mark and must overcome this resistance to end the current sideways trend. Another strong resistance is located at the $11,930 level. Should BTC manage to close above the $11,900 level on the weekly chart, the price could rise as high as $13,000, according to Rager. The most important support level is still the $ 11,200 mark.

Bitcoin Trader “yTedd”, however, describes that he is not trading in the current situation, as Bitcoin must first send a clear signal to identify a clear direction. In his opinion, the “weak hands” are being washed out of the market in the current situation.

Pompliano also agrees with “Byzantine General” and states that in the coming months “something is going to happen” as many of the market’s big players are buying Bitcoins. In his opinion, there will be a price increase soon. According to “il Capo Of Crypto”, Bitcoin is currently drawing a chart pattern that could indicate a price increase to $13,000.