FX.co ★ Bitcoin becomes bright star among cryptocurrencies

Most analysts have agreed on the near future of the first cryptocurrency. The United States Securities and Exchange Commission (SEC) and US Department of the Treasury suppose that in 2021, bitcoin will skyrocket. Analysts at Deutsche Bank also share this view, emphasizing that BTC will have a perfect future, if most investors support the bullish trend.

Since the beginning of the year, bitcoin has advanced almost fourfold, breaking the level of $20,000. Economists explain such a jump by ultra-loose monetary policy conducted by most central banks. The best part of analysts from Wall Street consider bitcoin one of the best alternative assets. At the same time, other specialists believe that BTC belongs to a separate type of assets, which could bring guaranteed income.

Analysts also warn that the current rally may lead to negative consequences. First of all, it may attract scrupulous attention from regulators. “Despite this meteoric rise, there are some storm clouds on the horizon,” Guy Hirsch, managing director for the US at online-trading platform eToro, said. Thus, there are factors that may cap a rise in BTC.

At the same time, the actions of most banks have also been triggering a jump in the bitcoin’s price. In 2020, some regulators were eager to buy digital assets, fearing possible inflation. As a result, key interest rates were cut to almost zero. That is why most investors began hedge risks by means of cryptocurrencies. Economists have prepared a lot of forecasts about the future of bitcoin. However, nobody can make accurate predictions. Bitcoin is expected to exceed the current levels in the upcoming year.

Notably, in 2020, bitcoin surged by more than 300%. It is likely to go on rising next year. According to the investigation conducted by Deutsche Bank, the majority of investors claim that by the end of 2021, bitcoin will gain in value again. At the same time, 41% of respondents foresee a rally in the range of $20,000-$49,999. Curiously, 12% of respondents believe that BTC will exceed $100,000.

However, the policy of the US Democratic-led administration may halt a rise in BTC. The administration may require stricter control over the cryptocurrency sphere, especially because of antitrust lawsuits.