Bitcoin has fallen sharply in value this week, just after it looked set to hit its record value of $20,000 – the highest since the 2017 crash.
Bitcoin’s value fell by 11% in total this week, a total of around $3,000 with a $1,000 happening in minutes on Thursday (Nov. 26). After hitting nearly $19,500 at the start of the week, a sharp sell-off after hours, bouncing bitcoin to $17,250 and capping daily losses at approx. 5%. Despite the losses, bitcoin remains the most popular and widely used virtual currency and has increased its value by over 100% in 2020 as a whole. Some experts, including CNBC host Brian Kelly, forewarned traders of a Thursday dip to around $14,000, which perhaps sparked the sharp sell-off.
Bitcoin wasn’t the only cryptocurrency to drop sharply in value this week, however. It was joined by most other cryptocurrencies, all of which suffered a sharp drop this week after seeing steady increases in recent weeks.
The forecasts for bitcoin’s value in 2021 has divided the opinion of experts, traders & cryptocurrency journalists alike, with many having polar opposite predictions.
Some have predicted bitcoin’s value could surge as high as $100,000 dollars in 20201 – more than 5x its record high value in 2017. The most bullish of these claims came from Dan Morehead, Founder and CEO of Pantera Capital, who has predicted bitcoin peaking in August 2021 at $115 212. Brian Estes, a chief investment manager at Off The Chain Capital, cited the fact that bitcoin’s value has jumped as much as 30x its value in a calendar year since it was created in 2009 – meaning a 20x jump isn’t actually that much, despite the increased monetary value.
Other experts and commentators have been more cautious, and have warned potential investors against heeding the words of such predictions. One Canada based trader even branded hedge fund models based on bitcoin as being “rubbish”.