Disclaimer: This article is not investment advice.
Future cryptocurrency predictions. The cryptocurrency market experienced a real boom in late 2020 – early 2021. The value of Bitcoin and many other coins has grown significantly, which has drawn attention to this area from investors. Some large companies have already managed to transfer part of their assets to bitcoins. The record increase in value of digital assets attracts the attention of those who have been far from this area up to this point. But many novice investors have no idea how cryptocurrencies will behave in the future. Will they go to conquer new peaks or will there be another drop in price? Bitcoin – a financial instrument of the future or a bubble? Let’s try to understand and predict the behavior of some crypto currencies in the current calendar year.
Future Cryptocurrency Predictions
Bitcoin dropped to $5,000 in March 2020. It seemed that this was the bottom, from which it would be impossible to push off. But a year has passed, and now its value on the market is more than $50,000. Experts’ opinions on the future of the coin are approximately the same: Bitcoin will continue to show strong growth. Analyst David Sailer believes that the BTC token could be worth $100,000 by early 2022. One of the reasons for this scenario, according to the analyst, is the halving that took place in May last year. Then the size of the reward that miners receive for mining cryptocurrency decreased from 12.5 to 6.25 BTC. In addition, digital gold has become much easier to buy thanks to the fact that services such as Robinhood, PayPal and Square have added support for digital assets.
Analyst Mikhail Karkhalev also admits a possible rise in the price of Bitcoin up to 100 thousand dollars. In his opinion, the growth may be facilitated by high interest in bitcoin futures on the Chicago Mercantile Exchange (CME) and an increase in the number of crypto transactions in PayPal.
Tesla
Another important factor for increasing value is active investment by large companies. The acquisition of bitcoins in the amount of $1.5 billion by Tesla, which is owned by Elon Musk, excited the market no less than the businessman’s statements on Twitter. It is worth noting a decrease in the number of bitcoins in circulation, as well as an increase in demand for it.
In some countries where the economic situation is poor (for example, Venezuela), some of the payments from residents are made directly using bitcoin.
A stumbling block in the Future Cryptocurrency Predictions be the creation of digital assets by government financial institutions. Work in this direction is already underway. The central bank of China is actively promoting the idea of creating its own digital currency. In February, it became known that the authorities would distribute about $1.5 million as part of a limited test of the national digital currency. This will be the third stage of her tests. 50 thousand randomly selected residents will receive 200 yuan (about $30) in their account, which they can spend in retail stores. However, the national digital currency of the PRC is completely controlled by the government, which is why investors are unlikely to rush to part with bitcoins, since independence from traditional financial institutions is one of the cornerstones of digital currencies.
The attitude of financial regulators to digital currencies is also of great importance. If a “green light” is received from them and the coins are recognized as assets that have prospects of becoming a full-fledged means of payment, then the value, like the popularity of bitcoin, will continue to grow steadily, which will pull altcoins up with it.
Ethereum (ETH)
The brainchild of Vitalik Buterin is the second most important digital asset, the value of which in the market has reached its absolute maximum price. There are many preconditions that digital silver, as many now call it, will continue to show a long-term uptrend. The main reason is the imminent launch of Ethereum 2.0. Phase 0 successfully took place at the end of last year. According to the developers, the long-awaited full-fledged launch will take place by the beginning of 2022, which is why many investors predict further growth in price for the ether. A big advantage of Ethereum 2.0 is the staking feature. Coin holders will be able to generate passive income simply by keeping Ether in their wallet.
Another positive thing for Ethereum is the stable growth of coins that run on the Ethereum blockchain. Don’t forget about the increased popularity of Decentralized Financial Applications (DeFi).
The Future Cryptocurrency Predictions for the cost of Ether for 2021 is $2,000 – $2,500.
Ether, unlike bitcoin, is actively developing. Developers are trying to make sure their coin is at the top. And in the long term, they can do it.
Ripple (XRP)
Ripple has long been considered the main competitor to bitcoin and ether, but something has not grown together. Unlike many other coins, it has grown slightly recently. According to experts, the future of the coin directly depends on the SEC’s decision. Recall that in 2020, the US authorities accused Ripple of illegally selling tokens in an amount equivalent to $1.3 billion. The regulator requires the seizure of illegal income with interest before making a decision and collecting fines. Experts say that the expected value of the XRP token for 2021 is $0.24 – $2. In case of failure in the proceedings with the SEC, the value of the coin may collapse to $0.1 and below. You should be wary of this asset, because there is a real threat of cost reduction.
BinanceCoin (BNB)
It is impossible not to mention the dynamically developing Binance Coin, the cost of which is now $280. The coin has confidently burst into the third position in the CoinMarketCap rating and does not plan to give up positions. Binance is actively burning tokens, a Binance card has appeared with which you can make daily payments – all these factors indicate the further growth of the coin in price throughout the year.
The Future Cryptocurrency Predictions for the BNB value for the current year is 400 – 425 dollars.
Other altcoins
Chainlink is a decentralized network of oracles whose main mission is to provide real-time data to smart contracts on the blockchain. Oracle projects are now actively gaining popularity due to the fact that they are difficult to develop. This year the value of Chainlink will range from $30 to $40, but in the next few years the token should rise in price to $60, which makes the coin a good investment tool in the medium term.
Monero
Monero is known to investors as one of the most anonymous coins. Because crypto currencies are valued precisely for their anonymity and confidentiality, the rise in popularity for a token is only a matter of time. As with many other altcoins, Monero is in a bull run trend after the crypto winter. The coin is steadily growing in value and now costs about $240. In May 2022, Monero will switch to a new emission mechanism – “tail emission” (delayed emission).
The solution will help limit the supply in the market (and a low supply, as you know, generates demand) and keep miners interested in this asset. Additionally, the Tari digital asset platform is set to launch in the spring, adding value to the Monero ecosystem. With a high degree of probability, the value of Monero in the current calendar year is close to $300. In the most optimistic hands, Monero can cost all $500.
Litecoin
It is also worth noting Litecoin, which gained a confident pace this year. It’s no secret that the coin has a high degree of correlation with Bitcoin, which is why experts predict further confident growth for it. Don’t forget that the younger brother of Bitcoin is technically superior to it: the emission is 4 times higher, the use of the Scrypt hashing algorithm allows faster interaction with the RAM, and the block processing speed of Litecoin is 4 times higher than that of Bitcoin. Technical analysis shows that the increase / decrease in the value of the BTC token has always led to similar behavior for the LTC token. Now the coin costs $220 and has all the chances that by the end of the year its price will increase to $270-300.
Summary
Obviously, we are witnessing a rebirth of the cryptocurrency industry. After a troubled period of more than a year, many coins are once again showing a bullish trend. Bitcoin and many altcoins have increased in value and, it seems, are not going to stop. Recently, bitcoin crossed another historical mark of 60 thousand dollars. And it seems that other peaks will be conquered as well. In the post-industrial era, when states totally control the financial sector, when at any moment the rate of any fiat currency can collapse due to the desires of financial sharks, people need a breath of fresh air, a sense of freedom and independence that cryptocurrencies can provide.
But you need to understand that Bitcoin dominates now.
The Future Cryptocurrency Predictions of many altcoins depends on his behavior, therefore, first of all, you need to look at him in order to predict the value of other coins. However, you need to understand that at any moment someone or something can put a spoke in their wheels and problems will begin, as, for example, with Ripple due to litigation. One way or another, the cryptosphere is developing and will continue to develop in this and subsequent years, attracting more and more investors.
