Bitcoin price forecast 2021: Can the cryptocurrency reach $70,000?
Bitcoin, the most well-known cryptocurrency, has been on a tear lately.
According to Coinbase, Bitcoin has risen by 1% in the last 24 hours to $56,951.18.
In addition, Bitcoin has increased by 26% in the last month.
Some of the gains can be ascribed to US Securities and Exchange Commission Chair Gary Gensler reiterating his support for Bitcoin exchange-traded funds (ETFs).
Rather than purchasing Bitcoin directly, you will be investing in futures contracts.
“We believe the change in sentiment toward bitcoin is due to positive words from SEC Chair Gary Gensler, potentially authorizing a Bitcoin ETF in the United States,” digital asset fund manager CoinShares noted in a report on Monday.
“In addition, our recent survey data reveals increased institutional participation in the asset class.”
But keep in mind that September was not Bitcoin’s best month.
Following China’s ban on all cryptocurrency transactions, Bitcoin and other major cryptocurrencies such as Ethereum plummeted last month.
Nonetheless, in the past 12 months, the cryptocurrency’s excitement has surpassed the bearishness.
Bitcoin has returned 393 percent to investors in the last year.
Although the returns have been beneficial over the last year, a possible investment can backfire if purchased at an excessively high price.
Bitcoin, for example, appeared unstoppable when Elon Musk’s Tesla purchased $1.5 billion worth of the cryptocurrency earlier this year.
The billionaire, however, sparked a massive sell-off in Bitcoin when he announced that Tesla will no longer accept Bitcoin payments.
Although Musk has stated that he believes Bitcoin and Tesla have a future, he has raised reservations about the cryptocurrency’s environmental impact.
Bitcoin has lost 10% of its value since April 13th.
Another risk to be aware of is that the cryptocurrency market is quite sophisticated, so you must comprehend what you’re investing in before proceeding.
Even a well-known cryptocurrency like Bitcoin is subject to the same risk.
Aside from the fact that Musk has a lot of sway over Bitcoin, it’s also worth noting that it’s the most widely traded cryptocurrency, with a market capitalization of more than $1 trillion.
Bitcoin was created in 2009 by Satoshi Nakamoto, a pseudonym for an anonymous computer specialist.
A computer solves a complex mathematical problem with a 64-digit solution as part of the Bitcoin mining method.
One Bitcoin block is processed for each challenge completed. In addition, the miner receives new Bitcoin as a reward.
However, according to the Cambridge Center for Alternative Finance, Bitcoin consumes approximately 99.10 terawatt-hours yearly, which is why it is criticized by environmentalists.
Cardano, a more environmentally friendly cryptocurrency, utilizes only six gigawatt-hours of energy each year.
There are around 21 million Bitcoin tokens in circulation right now.
Some people are speculating on how high the price of Bitcoin will rise in 2021 -… Brinkwire News in a Nutshell