The oldest and most popular virtual currency is expected to grow in value next year. According to Bloomberg’s current outlook for cryptocurrency markets, Bitcoin could rise to $50,000 by 2021. The market is sucked in by investors who fear of defaulting on a good buying opportunity.
It’s called “Fear of missing out” (FOMO), or the fear of missing out on an asset or getting out of it in time. Bitcoin now functions more as an asset that strongly entices investors to buy. In 2017, when Bitcoin approached the $20,000 mark, the market was dominated by a strong FOMO effect from retail investors. Now, rather, institutional investors seem to be falling for fears of missing out on a good investment.
If this trend holds, bitcoin’s value could be expected to rise to $50,000 next year, according to Bloomberg. Bloomberg also takes into account the experience of previous halvings for its forecast. The last one happened in May this year, and if the trends of the past were repeated, the $50,000 threshold could actually fall. Bitcoin is also being played into the hands of the central banks‘ extraordinarily relaxed monetary policy, with record amounts of money being released into the market, so investors are looking for better opportunities to appreciate them.
