In an interview with CNBC Asia on Monday, Bobby Lee, the co-founder and former CEO of BTCC, a crypto exchange platform has said that if predictions can be made based on historical records, Bitcoin could hit $300,000 before the end of 2021 in the current market bull run.
He said this in response to questions on how the price of the digital currency would fare in 2021. According to Bobby Lee, Bitcoin has experienced a 96% increase since the beginning of 2021 and this shows the beginning of a massive bull run.
Historical analysis of the Bitcoin’s bull run shows that the current increase is one of the ‘mega bull markets’ that occur every 8 years.
He stated that two of the mega bull markets have occurred within the last 8 years and the last one was in 2017.
2017 mega bull market saw the price to $20,000 from $1000 that it was before the bull run began.
Although Bobby Lee stated that he is uncertain of what the future holds but he said that the coin was trading at $30,000 at the beginning of 2021, ten times increase in that will take the price to $300,000.
The first quarter of 2021 has experienced a two-times increase with Bitcoin reaching an all-time high of $61,000.
However, there can be no bull run without correction. Lee warns that if his predictions are right, ‘bitcoin winter’ is set to follow the bull run.
He said the correction could occur up to 80%-90% fall from the peak price which may last for up to 2-3 years. The same thing happened in 2017.
Take home
Every crypto investor is not oblivious of the impending increase in price as a new bull run begins. So far, 2021 recorded the largest institutional investment in Bitcoin starting with Tesla’s $15billion investment then Square inclusion of Bitcoin in its Balance sheet.
Mastercard, Morgan Stanley, PayPal and Facebook are currently making efforts towards taking advantage of the popular digital currency.
With growing interest from investors – both individual, groups and institutional- the price of Bitcoin is expected to keep soaring higher.
Not minding market bull run and precedent, the interest of institutional investors and halving is alone is enough to make Bitcoin price increase.
As stated by Anthony Saramucci, founder of SkyBridge Capital, it is not too late to buy the coin.
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