Bitcoin‘s correction phase has been going on for almost a few months now. Analysts aren’t all that negative, however.
A recent report titled “Bitcoin price forecast 2021” reflected this. According to the report’s findings, 62% of panelists surveyed believe that BTC is not in a bear market. According to these panelists, various factors such as sustained buying interest, Bitcoin’s price history, and the continued relevance of fundamentals were key indicators that guided their stance.
According to the chart above, new assets continued to join the network even as the BTC price moved sideways. With more than 50,000 new assets appearing to join each day, the weekly net growth on the Bitcoin network was higher than what was observed at the beginning of the year when prices started to reach new highs.
But other Blockchain metrics that refute these claims cannot be ignored. The chart above shows how Bitcoin’s adjusted blockchain volume has fallen steadily over the past few months. From a peak of more than $16 billion in May, daily trading volume has dropped to around $6 billion, indicating that traders have withdrawn from the network.
Panelists, including leaders from the worldwide crypto space, predict that by December 2025, the BTC price will rise to $318,417. This is attributed to halving events and actual inflation.
It is estimated that 30% of currently circulating US dollars was minted in 2020, giving enough impetus to fears of impending inflation. Mass BTC adoption could be another reason for this predicted increase. Nearly 54% of panelists thought “hyperbitcoinization” would occur by 2050, when Bitcoin will take over global finance. However, 25% of respondents believe it will happen much sooner, by 2035, and around 20% believe it will happen. Some of those surveyed said this would happen by 2040.
Billions of dollars are currently locked in DeFi, with DeFi providing lucrative and safer alternatives to nearly all traditional investment vehicles and institutional investors interested in crypto funds and derivatives markets. All these aspects point to an inevitable “hyperbitcoinization” of global finance, but picking a date in the coming decades can be difficult.
It’s not just big investors who will benefit from their investments. 33% of panelists also predicted that within 10 years, Bitcoin will become the currency of choice in developing countries. 21% said the level of adoption is more than 10 years.