The Bitcoin price prediction 2021 of Guggenheim Partners Global Chief Investment Officer Scott Minerd offers a mixed outlook for the popular cryptocurrency with the biggest market capitalization in the world.
Bitcoin price might revert to $20,000 to $30,000 or equivalent to a 50% drop, according to Minerd. However, he hinted that such a decline is a normal part of a bull market, as per CNBC.
Bitcoin (BTC) stock value traded around $55,000 per digital token on Wednesday, a week after it reached an all-time high close to $65,000, coinciding with Coinbase's movement to go public and Dogecoin's (DOGE) value soaring to a 400 percent increase.
As part of Minerd's Bitcoin price prediction 2021, he's also seeing that the world's most popular cryptocurrency might skyrocket to a $400,000-$600,000 price per unit.
Last year, the Guggenheim executive said in an interview that the Bitcoin price would eventually rise to around $400,000, a statement that coincided with Bitcoin breaching the $20,000 mark.
With only 21 million Bitcoins available out there, Minerd added that the cryptocurrency's value is comparable to that of gold, Bloomberg reported.
Bitcoin's price is close to almost 90 percent this year, driven by the adoption of more established businesses and governments across the globe.
In fact, Tesla CEO Elon Musk previously announced that Bitcoin is now accepted as payment for Tesla electric and self-driving cars, such as the Model X and the Model S, despite calling it a hoax like a fiat money on a previous occasion.
Tesla has also invested a fraction of its holdings in Bitcoin, while financial companies like multinational investment bank Goldman Sachs and financial services firm Mastercard have started letting in crypto into their transactions.
U.S. Internet-based payments companies like PayPal are now allowing customers to conduct transactions using Bitcoin digital tokens and other digital currencies.
Bitcoin Price Drop Causes
Despite these developments, crypto critics continue to insist that Bitcoin and other cryptocurrencies, such as Ethereum (ETH) and Ripple (XRP), are in a bubble that will burst. Supporters of Bitcoin and other crypto assets, meanwhile, see them as an inflation hedge and modern money.
Recently, Bitcoin price plummeted to around $55,000 after hitting $64,000 during the preceding week. Ethereum, the second-biggest crypto asset in the world, also dropped by $2,000, while Dogecoin went down to $0.24, along with the prices of other cryptocurrencies.
Several reasons were cited as possible causes of the drop. These include the United States Treasury's plan to crackdown cryptocurrencies as part of its anti-money laundering initiatives, according to The Telegraph.
The Financial Crimes Enforcement Network (FinCEN) of the US Treasury neither confirmed nor refuted the existence of such a campaign against cryptocurrencies.
Last week, Turkey's central also bank released a decision banning the use of digital tokens in retail transactions due to the threat of potential losses.
Earlier this 2021, the European Central Bank also commented that Bitcoin is being used in criminal activities, pushing governments across the world to conduct investigations against crypto assets.
The Indian government, meanwhile, has a cryptocurrency ban law that seeks to penalize people who own digital currencies and use them in trading transactions.