Due to recent events, the price of Bitcoin has recently become very volatile. Between Elon Musk’s flurry of tweets and China’s new crackdown on the crypto currency, it’s hard to anticipate Bitcoin’s short-term future. On the one hand, some predict an abysmal fall for the crypto currency while on the other, crypto enthusiasts hope for a slow rise. What will ultimately happen to the crypto at the end of the year? What Bitcoin forecast for by the end of 2021?
A quick look at the current price of Bitcoin
Bitcoin experienced a meteoric and epic rise following the recent waves of containment due to COVID-19. Indeed, during this period, many individuals turned to decentralized transactions, particularly those involving Bitcoin. In fact, the price of the BTCUSD pair was able to reach a corresponding high of $64,863.10.
Today, with a 24-hour trading volume equivalent to about $46 billion, Bitcoin is worth $36,782.40. Bitcoin is thus experiencing a drop of more than 35% in the last 48 hours. Compared to its previous high in April, Bitcoin has lost almost 50% of its value! So will this fall continue?
China’s crypto crackdown: what does all this turmoil portend for Bitcoin and its forecast for the end of the year?
After Tesla’s announcement stipulating, that after only 6 months of using Bitcoin as a vehicle payment method, the firm would now end this procedure, the cryptocurrency experienced a drop of about 15% in less than 24 hours. According to Tesla CEO Elon Musk, this violent change of heart was due to the “anti-green” nature of Bitcoin mining.
According to him, Bitcoin mining is too carbon intensive. As you can see from the graph above (this is a graph posted by Elon Musk on his Tweeter account the day after Tesla’s announcement, on May 13), Bitcoin’s consumption on a one-year scale reaches 511.75 TWh.
Holders of Bitcoin positions then rushed to liquidate their positions. This did not bode well for the future of Bitcoin.
It was only after this that China entered the crypto scene. Indeed, the Asian giant caused another Bitcoin crash after an announcement of impending Bitcoin crackdowns. Specifically, it is the regulators of Chinese Bitcoin mining firms that have recently decided to ban and punish all Bitcoin-related transactions within the country. In addition, the regulations on Bitcoin mining will become much more extensive. As for investors, they will only be entitled to a public warning about speculation in this type of instrument.
So, Bitcoin is getting worse and worse. As a reminder, China has such an impact on the Bitcoin market because the cost of electricity is very affordable there. With this wave of crackdown preceded by Tesla’s recent announcement, prices are likely to continue. According to some Bitcoins forecast analysis, the $20,000 mark could be reached very soon!
In addition, investors are slowly coming around to Elon Musk’s idea that “Bitcoin is bad for the environment”. Whether it’s out of sheer hubris or a deep desire to preserve nature, all of his selloffs are effectively moving Bitcoin closer to the famous $20,000 mark.
Also, with the crackdown on Bitcoin mining pools in China, many players in the field are already scrambling to leave Asian soil. China’s Hashrate, which was 76% in 2019, has already dropped to 65%. If they don’t manage to establish themselves elsewhere to continue their activities, Bitcoin is not likely to rise again anytime soon. Not so good news for the year-end Bitcoin forecast.
Bitcoin forecast: Can we expect a miraculous rise in the crypto currency?
Bitcoin could still experience a new rise. But it may not be as fast as the last one. Indeed, most Bitcoin miners and manufacturers of tools related to Bitcoin mining are preparing or already leaving China. Their goal: to establish themselves elsewhere to continue mining the cryptocurrency.
They are targeting countries such as the United States, Kazakhstan and Canada where the cost of electricity is conducive to Bitcoin mining. Better yet, Bitcoin mining policies are very favorable in these countries. This is something that investors, and especially crypto enthusiasts, are very happy about. As for the latter, a survey conducted on Coinmarketcap suggests that Bitcoin is likely to rise quietly to $62,000.
A miraculous rise can therefore already be expected for Bitcoin. Also, we can consider this estimate validated if Bitcoin crosses $42,000 in early June 2021.
Bitcoin, the cryptocurrency that has been the source of so much controversy, is now subject to high volatility. For this end of the year, if the major mining players do not manage to get out of the net of Chinese crackdowns, the forecast for the cryptocurrency is bleak. However, some miners like HashCow and BTC.TOP are already getting ahead of themselves and preparing their departure from China.
Would you like to get more news about Bitcoin? Stay tuned with us.
