Recently on Quora, someone asked me the question:
What is your price prediction for Bitcoin in August 2021?
This post was my response to that question.
What is Bitcoin?
Bitcoin is the first and most valuable cryptocurrency, created by Satoshi Nakamoto in 2009.
The coin was designed to be peer-to-peer electronic cash but now mostly functioning as digital gold.
Bitcoin price prediction 2021
I think 1 Bitcoin could be worth between $30,000 and $100,000 between now and August 2021.
Why that huge difference offers little to answer the question.
In the rest of this post, I will be sharing with you the various factors affecting the price of Bitcoin and why my prediction is wide and wild.
The major factor affecting the price of Bitcoin right now
The current bull run is mostly being influenced by institutional investors with retail trailing behind.
Though retail money could be larger than what institutions have put in so far, the corporations are championing this pump.
But if institutions are pumping Bitcoin, why is it dumping right now?
Because this is a "money game" and they're good at it.
Or at least, better than the average individual or retail investor.
Why is Bitcoin dumping right now?
Because institutions have a lot more money to use in buying Bitcoin, and they want to buy it at a lesser price.
One thing you must note is that institutions do not care about the "current" value of their investment.
Someone will say, if they're dumping to buy lower, they are also losing money because they bought at $50,000 per coin for example.
Yes! True they're losing money "on paper".
And because they will not be selling at these lower prices but rather buying more, they actually lose nothing.
It is the emotional sellers and amateur traders who're bearing the "true loss" by selling their Bitcoin cheap.
Institutions can afford to dump it to as low as it can go, even $15,000 knowing fully well, they can pump it to $100,000 or any price they want.
They can also afford to do this for the next 5 to 10 years. Rinse and repeat until weak hand retails are priced-out of Bitcoin.
Bitcoin and the cryptocurrency market as a whole are heavily manipulated.
If you must play this game, then prepare to play for the long term and embrace the HODL meme.
Otherwise, you will always lose money to these merciless whales and savvy institutional investors.
However, I believe with new institutional investors coming into the game, Bitcoin should end this year (2021) with an ATH of $100,000.
Whether it stays there or not is something we will have to wait, watch, and see.
PS: If you survive this dump and manage to catch the next pump (5x, 10x, 20x) remember to take some profit.