By the end of 2021, the rate of bitcoin may reach $80,000 and etherium - $6,000, experts polled by "Izvestia". The rate of the first coin in the morning of November 9 reached another historic maximum, trading at the moment at $68.4 thousand, the second - $4.8 thousand. Further rally in the crypto market will support the popularization of digital assets, positive news from financial regulators and rampant inflation around the world. With such growth, the capitalization of this market will exceed $3.5-3.7 trillion from the current nearly $3 trillion in a month and a half, experts say. However, along with the predicted records, analysts warn about the volatility of digital coins and unpredictable risks.
After morning records of $68.4 thousand, bitcoin rate rolled back to $67.7 thousand by 17:30 Moscow time. Overall, since the beginning of 2021, the main coin has risen in price by $39.1 thousand, or 133%, and since the beginning of November - by $7.9 thousand, or 13%. Other alternative coins are also keeping up with it in price, breaking new milestones. So, etherium set a new maximum and passed $4.8 thousand. During the trades on November 9, it was quoted near the reached values. Among other altcoins, Solana (+20%), Binance Coin (+18.4%), Cardano (+15.5%) and XPR (+13.6%) rose the most during the last week.
On the wave of record growth in the value of coins, the cryptocurrency market capitalization for the first time exceeded the historical maximum and reached $3 trillion on November 8. As of 17:30 Moscow time on Tuesday, this figure was adjusted to $2.93 trillion.
The tone of the current records in the cryptocurrency market is set by the bullish mood, says leading strategist Yiannis Kivkulis of Ehapte. He reminded: starting from spring and till October bitcoin was growing rather lazily and did not set new records due to market downturns. However, last month the situation changed. The market began to recover, and on the background of the start of trading bitcoin-ETF futures coin reached a new high of $67 thousand, which today again updated. The dynamics of the market flagship was repeated by etherium: after the drawdown, it also broke the record, trading already at $4.8 thousand, the expert said.
- Positive news also plays in favor of the crypto market. In particular, the pending decision of the U.S. Securities and Exchange Commission (SEC) on the registration of "physical" bitcoin-ETFs that track the bitcoin rate directly rather than futures," Yannis Kivkulis pointed out. - As statistics show, such instruments are more profitable in a growing market situation, and a positive decision on it will only strengthen the rally in the market. Cryptocurrencies continue to establish themselves as a new asset class following the launch of bitcoin futures-based ETFs and a surge in inflation expectations, said Aaron Chomsky, head of investment at ICB Fund. According to him, global inflation rates continue to rise and may get an additional driver this week in the form of an acceleration in U.S. consumer price growth from a 13-year high of 5.4% to 5.7%. In China, for example, producer prices have reached a 26-year peak, he added.
Against the backdrop of the current situation in the economies and several other indicators, including analysis of the behavior of large holders of bitcoin, which does not yet intend to get rid of coins, we should expect a continued rally in the crypto market, said Aaron Chomsky.
Forecasts and risks
In addition to the aforementioned factors, the continued growth of the crypto market will contribute to the popularization of DeFi, NFT and blockchain games, believes Aaron Chomsky. He said that due to the latter, according to forecasts, the audience of cryptocurrency users can grow from the current 200 million to 1 billion. Also, on November 14, the bitcoin network will be updated Taproot (technology to improve performance), which will increase scalability, privacy and improve the functionality of the coin smart contracts, he said.
- In the ethereum network, the driver will remain expectations of U.S. authorities' approval of ETFs based on traded futures. While in terms of macroeconomics the support will be the maintenance of inflation expectations at high levels against the reluctance of central banks of developed countries to accelerate the normalization of monetary policy and a number of other factors, - summarized the expert.
By the end of the year bitcoin may break through the mark of $80 thousand and Etherium - $6 thousand, Yannis Kivkulis estimated. In this case, the capitalization of the market may reach $3.5 trillion, the expert predicted. Aaron Chomsky gave similar estimation on cost of the first and second coins, having added that the general cost of the market will overstep a threshold of $3.7 trillion. It will be still small value against a background of capitalization of gold and financial instruments in fiat, he added.
However, we can not rule out new corrections in the cryptocurrency market, everything will depend on global sentiment, said the expert from Yechapte. We should not forget about the factors that can change this market at the root, warns the director of the company "United Broker" Artem Arzamastsev. The most important ones are the high volatility of coins for no apparent reason, as well as their lack of such a concept as intrinsic value, which makes forecasting difficult, he added. There are also regulatory risks: at some point, any country will find it unacceptable to have too much "their" money flowing into digital assets that they do not control, the expert said. So far, China is taking strict restrictive measures, but the situation may change with the release of the state analogues of fiat currencies, summed up Artem Arzamastsev.
Janis Kivkulis advises to pay attention to crypto exchanges and diversify the portfolio by placing funds on different platforms and protect them in this way. In the pursuit of earnings one should focus on proven digital assets, the expert urged, not excluding the emergence of new fraudulent projects like Squid game, based on the Korean TV series.
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