The price of BTC has increased by more than 60% since the beginning of the year. However, since the April ATH, it is almost a 30% decrease. One of the most popular models – Stock-to-Flow – sees that BTC will reach six-digit levels by the end of December. If BTC is to reach such unimaginable heights, it would have to more than double its value in a few months.
Factors that could help the growth of BTC
US BTC ETF Approval
Probably one of the most debated topics in the cryptocurrency sector over the past year is whether the US Securities and Exchange Commission will approve a exchange traded fund that monitors BTC’s performance. The SEC has received countless applications. Until last year, it rejected almost all of them, but in 2021 it has a new approach – delaying decisions. This has led to speculation that such a product could actually be approved by the end of this year.
If this were indeed the case, it would legitimize the primary cryptocurrency among many traditional financial investors and institutions, as they will have exposure to the asset through a well-regulated ETF.
Adoption is another crucial factor. El Salvador made history in September, when it became the first nation to accept BTC as a means of payment. If another country followed this example, it could increase the cost of cryptocurrency.
A prominent name could do the same. So if the crypto-community gets a new Michael Saylor or Elon Musk, BTC could quickly head higher.
Adoption could also come from large companies such as Apple, Amazon, Google or Microsoft. Recent fake news that Walmart will allow payments by litecoin has sent LTC 20% higher in a minute. So what would happen if one of the largest companies in the world joined the cryptocurrency?
China has been against cryptocurrencies for almost as long as they exist. This year, however, the country has taken it to a completely different level by issuing a ban on mining, trade and everything in between.
The world’s most populous nation, known for its reluctance to decentralized products, is developing its own central currency digital currency. It will work completely differently from BTC, allowing the government to maintain control over all transactions.
So there is little chance of China’s turnaround. However, this may not be necessary. The US has already said that it will not follow the same path, which has had a positive impact on markets.
What history says
History shows that the primary cryptocurrency is capable of such impressive growths. Exactly a year ago, it traded for $ 10,500. It continued until the end of 2020, ending the year at $ 29,000. In percentage terms, this is a 175% increase over the same time frame.