With the year almost up, and Bitcoin threatening to break into a price range that has never been seen above $20,000, predictions are starting to ring out for the next 12 months. The general consensus is that Bitocin is on track for a massive year, especially considering the uptake in institutional investment.
The best-selling author of Rich Dad Poor Dad, Robert Kiyosaki has shown he is a major Bitcoin believer in the past, and is now stating that the coin will top $50,000 in 2021. Kiyosaki is known for investing in different stores of value, and with the Covid-19 impact on the globe, and institutional interest, he sees this store of value taking off.
Next stop $50,000
“Glad I bought Bitcoin. Next stop $50k. Wall of institutional money coming 2021. Buy below $20k. If you missed Bitcoin, buy silver. Silver set to move due to AOC’s Green New Deal. America in trouble. Future bright for gold silver Bitcoin and entrepreneurs.”
If Bitcoin hits $50,000, its market cap would reach $928 million, which is around 10.3% of gold’s market cap compared to the current 2.9% indicating that even at this high price, it is still a small market relatively speaking.
Finding its groove
Bitcoin is still struggling to find its routine. It has been seen reacting to a weakening dollar and acting like gold, but there is also evidence of a correlation to equities and traditional markets.
For instance, over the past 24 hours, Bitcoin price has increased by around 4.5%, recording a 6.5% gain at the day’s peak.
BTC rallied in tandem with gold, while the Asian markets slumped and U.S. stocks slightly retreated. Holger Zschaepitz, a market analyst at Welt, said:
“Asian stock retreated w/European and US Futures after a mixed Wall St session, amid caution over econ risks from virus-related curbs and ongoing US fiscal stimulus talks. Bonds gain w/US 10y yields [are less than] 0.9%. Dollar steady w/Euro at $1.2153. Gold rises to $1839. #Bitcoin at $19.1k.”