Bitcoin (BTC) is likely to hit $60,000 in 2021 amid the growing mainstream adoption, according to an analyst at major financial publication Investing.com.
Jesse Cohen, a senior financial analyst at Investing.com, predicted that Bitcoin will likely reach a $60,000 level in the first half of 2021.
According to Cohen, Bitcoin’s growth in 2021 will be fueled by support from institutional investors combined with the “flush of ultra-cheap money being pumped into the global financial system” by global central banks like the United States’ Federal Reserve:
“After a record-breaking year in 2020 that saw it jump more than 300%, Bitcoin looks to stay strong in 2021 as more retail — and big-name institutional buyers — enter the market [...] For those already in, the strategy in place remains to HODL [...] First-time novice investors have found their way into many risk-perceived assets, including Bitcoin.”
Cohen’s remarks come in conjunction with a new crypto-related survey by Investing.com, according to which 63% of respondents in the United Kingdom are planning to purchase some Bitcoin in 2021. More than 60% of 800 respondents also said that they believe that Bitcoin will surge above $60,000 in 2021.
Despite growing confidence about Bitcoin’s rally in 2021, there are many concerns about the surrounding regulatory climate. “With Bitcoin moving into the mainstream and capturing greater attention, it will likely draw further scrutiny from regulators in the United States, Europe and Asia,” Cohen said.
Cohen is particularly concerned about the impact of the new United States presidential administration. “The path forward may not necessarily be as smooth afterwards however. I’m expecting a retracement,” Cohen added.
According to the survey, the majority of British respondents identify new regulatory restrictions as the biggest threat to Bitcoin in 2021.
Cohen's prediction is by no means the highest for Bitcoin this year. Pantera Capital CEO Dan Morehead is confident that Bitcoin will hit $115,000 by August 2021. In early January, Binance.US CEO Catherine Coley predicted that Bitcoin could hit $100,000 by the end of the year. PlanB, the creator of the stock-to-flow model, also forecasts that Bitcoin should be somewhere between $100,000 and $288,000 by December 2021.