Bitcoin Forecast: Where will we be at the end of the year

By: Bharggavi Ssayee

May 31, 2021 9:32 AM

Due to recent events, the price of Bitcoin has recently become very volatile. Between Elon Musk's flurry of tweets and the new Chinese crackdowns on this cryptocurrency, it is difficult to anticipate the short-term future of Bitcoin. On the one hand, some predict an abysmal fall for cryptocurrency while on the other, crypto enthusiasts are hoping for a slow rally. What will happen to this crypto in the end at the end of the year? What is Bitcoin forecast for by the end of 2021?

Quick look back at the current Bitcoin price

Bitcoin has experienced a meteoric and epic rise following recent waves of containment due to COVID-19. Indeed, during this period, many individuals turned to decentralized transactions, especially one involving Bitcoin. In fact, the price of the BTCUSD pair was able to reach a corresponding high of $ 64,863.10.

Today, with a 24-hour trading volume equivalent to around $ 46 billion, Bitcoin is worth $ 36,782.40. Bitcoin is therefore experiencing a fall of more than 35% in the last 48 hours. Compared to its old record in April, Bitcoin would have lost almost 50% of its value! So will this fall continue?

China’s Crypto Crackdown: What All The Fuss For Bitcoin And Its Prediction For The Year End?

After Tesla's announcement that after only 6 months of using Bitcoin as a vehicle payment method, the firm would now put an end to this procedure, the cryptocurrency fell by around 15% in less than 24 hours. . According to Tesla CEO Elon Musk, this violent change of mind is due to the "anti-environmental" nature of Bitcoin mining.

Still according to him, bitcoin mining would involve too much carbon consumption. As you can see from the graph above, (this is a graph posted by Elon Musk on his Tweet account the day after Tesla's announcement, May 13), Bitcoin consumption on a scale of a year reached 511.75 TWh.

Bitcoin positron Holders then rushed to liquidate their positions. This already did not presage a very bright future for Bitcoin.

It was only after this that China entered the crypto world. Indeed, the Asian giant is causing a new Bitcoin crash after an announcement of imminent Bitcoin crackdowns. More specifically, it is the regulators of Chinese Bitcoin mining firms who recently decided to ban and punish all Bitcoin-related transactions within the country. In addition, Bitcoin mining regulations will take on much more force. As for investors, they will only be entitled to a public warning about speculating in this type of instrument.

Bitcoin is therefore getting worse and worse. As a reminder, China has just as much influence on the Bitcoin market because the cost of electricity is very affordable there. With this crackdown preceded by Tesla's recent announcement, prices are likely to continue. According to some Bitcoin forecast analyzes, the threshold of $ 20,000 could be reached very early!

Moreover, investors are gradually joining Elon Musk's idea: "Bitcoin is bad for the environment". Whether out of pure pride or a deep desire to preserve nature, all of its liquidations are effectively bringing Bitcoin closer to the famous $ 20,000.

Also, with the crackdown on Bitcoin mining pools in China, many players in the field are already rushing to leave Asian territory. China's Hashrate, which was 76% in 2019, has already risen to 65%. If these fail to establish themselves elsewhere to continue their activities, Bitcoin is unlikely to rise anytime soon. Not all that good news for the end of the year regarding the Bitcoin forecast.

Bitcoin forecast: Can we hope for a miraculous rise in the Flagship cryptocurrency?

Bitcoin could nevertheless experience a new ascent. This one may still be slower than the previous one. Indeed, most Bitcoin miners and Bitcoin mining related toolmakers are already preparing or leaving China. Their goal: to settle elsewhere to continue mining cryptocurrency.

These target countries like the United States, Kazakhstan and Canada where the cost of electricity is conducive to Bitcoin mining. Better still, Bitcoin mining policies are very favorable in these countries. Something to delight investors and above all, crypto-enthusiasts. Regarding the latter, a poll conducted on Coinmarketcap suggests a quiet rise in Bitcoin to $ 62,000.

A miraculous rise can therefore already be hoped for on Bitcoin. Also, we can consider that this estimate is validated if Bitcoin crosses $ 42,000 in early June 2021.

Bitcoin, this cryptocurrency source of so much controversy is now subject to high volatility. For this end of the year, if the main mining players are unable to extricate themselves from the net of Chinese repression, the forecasts for cryptocurrency are bleak. However, some miners like HashCow and BTC.TOP are already getting ahead and preparing for their departure from China. Good news for the future and a promising Bitcoin forecast?