Bitcoin price will reach $60k by mid-2021, according to a new study

When it comes to the price of Bitcoin, seems like everyone has something to say. However, some of these parts take their time to make long studies based on data, instead of just bets. In line with this, BayernLB or Bayerische Landesbank, the seventh-largest financial institution in Germany, published a new report regarding their financial perspectives for 2021.

According to the study, Bitcoin (BTC) has shown a better monetary policy than most central banks. While the last ones have been increasing their monetary issuance due in part to the pandemic, Bitcoin has decreased it this year.

Last May, the third Bitcoin halving was held, reducing by half the mining reward and the total volume of coins. This would imply more scarcity and greater value, contrary to the traditional money increasingly reproduced (and devalued) by central banks. Bitcoin now can compete easily with gold, and the bull market is on its way.

If the market continues to behave as it has till now, resembling the previous post-halving paths, the price of Bitcoin could reach at least 60,000 USD per unit by mid-2021. It could even reach 250,000 USD per unit soon after, as indicated by the report.

“Even if the more conservative post-halving path, the one following the second halving, is assumed (and the current trajectory is trending above this), the Bitcoin price could be standing at USD 60,000 in mid-2021 under this scenario, climbing to a peak reading of a rather astronomic-sounding USD 250,000”.

Other predictions for Bitcoin price and beyond

One of the most remarkable consequences of such an event in the price of Bitcoin could be the early appearance of the digital euro, a Central Bank Digital Currency (CBDC) issued directly by the European Central Bank (ECB). Previously, ECB President Christine Lagarde was expecting to develop this hypothetic CBDC, if deemed necessary, within the next two to four years.

However, if Bitcoin price and adoption increase considerably, the European Union could feel pressured to compete against it before, even changing some of its regulatory frameworks to make it possible. Of course, this is only a potential outcome.

On the other hand, BayernLB isn’t alone in their forecasts. Galaxy Digital CEO Michael Novogratz stated recently that he believes precisely in a price of 60,000 USD per Bitcoin by the end of 2021.

Other predictions are bolder, ranging from 100,000 USD to even 1M per unit by 2021 and beyond. For now, Bitcoin has already touched again 18,000 USD, and everyone is betting about when the yearned All-Time-High (ATH) will come over this time.

Featured Image by Gerd Altmann / Pixabay

Originally published at https://blog.alfa.cash on November 28, 2020.

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