After Bitcoin stormed out for most of October, it pulled back somewhat as the price of Bitcoin pulled back from its highs around $67,000.
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The price of Bitcoin has doubled since its summer lows, while Ethereum, the second largest cryptocurrency after Bitcoin, added about 140% – hitting an all-time high last week.
Despite massive gains already made by Bitcoin and Ethereum this year, many investors expect prices to continue to rise, with one cryptocurrency executive predicting that Bitcoin will reach $100,000 before the end of 2021.
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CoinList CEO Graham Jenkin told CNBC. “It’s getting really tight so I’m not sure we’ll make it, but that’s what we’re expecting at the start of the year.”
The price of Bitcoin soared into 2021, rising to around $65,000 per bitcoin before falling back to $30,000 in July. Since then, bitcoin has made a comeback, breaking above $67,000 in October thanks to the hype surrounding bitcoin’s long-awaited acceptance on Wall Street and the growing belief that the original cryptocurrency could replace gold as a digital store of value and a hedge against inflation.
“We are dealing with a bullish consolidation ahead of yet another attack on bitcoin, which promises to make the end of the year an awe for the first cryptocurrency as it hits all-time highs,” said Alex Kuptsikevch, chief financial analyst at FxPro. Comments via email, giving a target bitcoin price of “a little over $90K, as [bitcoin] It could be this month.”
Alongside the Bitcoin rally, the price of Ethereum has also soared, rising amid widespread adoption of Ethereum-based decentralized finance (DeFi) and the ongoing craze for non-fungible tokens (NFTs). DeFi – the idea that a lot of traditional finance can be recreated on the blockchain without the need for banks – and NFTs – a way of tokenizing digital media and assets on the blockchain – has found huge new markets over the past year as people flock to digital assets.
Ethereum’s growing list of use cases, along with a highly anticipated upgrade that reduces supply that developers hope will improve efficiency and scalability, has raised expectations that it will continue to outperform bitcoin. Ethereum price has added 1,000% since this time last year, compared to Bitcoin’s 4.00% surge.
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“[Bitcoin] It does not have the network density that ethereum has,” Goldman Sachs previously
Pal revealed that he has invested “probably 85%” in Ethereum, referring to the “limited Ethereum supply” thanks to his move to ethereum 2.0, and “about $100 billion in DeFi, NFTs and all that.”
“Ether has seen a supply contraction since last week, which is playing in favor of the bullish trend, particularly attracting the attention of investors worried about a glut of money in the developed world and huge debt burdens,” Kuptsikevch added.
Last month, a panel of 50 bitcoin, ethereum and cryptocurrency experts predicted that the price of ethereum could reach $5,000 per ether before the end of 2021 — and rise to more than $50,000 by 2030.