Over the past year, the price of Bitcoin keeps climbing and it recently shot above $18,000, approaching its all-time high in 2017 with a year-to-date rise of 150%. Some financial experts firmly believe that the current price is just a warm-up, and it sets to rise above $100,000 by 2021.
Why has Bitcoin soared this year?
Since the beginning of this year, the COVID-19 epidemic has impacted the global capital markets in various degrees, but Bitcoin, once regarded as a tool of money laundering, has performed well for two reasons.
First, Bitcoin has some features of the gold. Gold was once seen as an alternative to the dollar, so is Bitcoin. Experts argue that Bitcoin has the real potential to "displace gold to a large extent" and that its growing popularity is partly affecting the status of the dollar. Bitcoin has surged this year under the influence of inflation, risk aversion and other factors.
Second, Bitcoin gains institutional recognition. According to media estimates, Wall Street now controls 47.9% of the current Bitcoin supply, if trust funds, public companies, digital currency exchanges, governments, and digital currency programs add up their holdings. The reason for institutional recognition is the positive outlook of Bitcoin and a better regulatory environment.
Industry insiders continue to be bullish on Bitcoin.
"I've seen it soar 10 times, 20 times and 30 times in a year, so it's not a big deal to go up five times." Brian Estes, chief investment officer at hedge fund Off the Chain Capital. Brian Estes, told Reuters that it was "not out of the question" for Bitcoin to rise from $18,000 to $100,000 in a year.
Anthony Pompliano, founder of capital management firm Morgan Creek, agreed that the triple impact of monetary easing policy in the US, the rampant printing of money and a halving of the mining reward would make Bitcoin top $100,000 undoubtedly.
Tom Fitzpatrick, technical analyst of Citigroup, is more bullish on Bitcoin's performance. He predicted in a report that it would rise to $318,000 by the end of 2021, citing the secrecy, ease of cross-border transactions and short supply of cryptocurrencies.
Similarly, Silkchain is the first project dedicated to improving the ecology of international trade and cross-border consumption by using blockchain technology in the world. As the first cross-border e-commerce chain, its performance in the coming year also worth expecting.