Bitcoin price breached $20,000 in record-breaking 2021

Bitcoin is likely to have another “record-breaking year” in 2021 and the price surpasses $20,000 for the first time. The price is expected to rise 50% and possibly double with its current momentum, believes the boss of one of the world’s largest independent financial advisory and fintech organisations.

The cryptocurrency's price jumped 4.5% to move as high as $20,440. Bitcoin has gained more than 170% this year over demand from larger investors attracted to its potential for quick gains, purported inflation-resistant qualities, and expectations that it will become a mainstream payment method.The previous high was in December 2017 when the Bitcoin price hit $19,850.

All financial markets experience peaks and troughs – both of which, of course, can benefit investors – and the cryptocurrency market is no different. Inevitably, we will soon see some pullback on prices and more volatility as traders sell Bitcoin at record high prices.

“This is especially true as the market is heavily influenced by so-called ‘whales’, major investors who hold lots of the digital currency and can therefore have a major impact on prices when they buy or offload.”

However, these lower entry points can be good for smaller investors to increase their exposure to cryptocurrencies. Indeed, it could prove to be particularly beneficial as Bitcoin is, I believe, likely to have another record-breaking year in 2021, with prices expected to rise 50% and possibly double with its current momentum.

Secondly, with the governments continuing to support economies and increase spending due to the pandemic, investors are increasingly going to look to Bitcoin as a hedge against the “legitimate inflation concern.”

It has been observed that inherent traits of cryptocurrencies are ever-more attractive. These characteristics include that they’re borderless, making them perfectly suited to a globalised world of commerce, trade, and people; that they are digital, making them an ideal match to the increasing digitalization of our world; and that demographics are on the side of cryptocurrencies as younger people are more likely to embrace them than older generations.