China Bans Cryptocurrency- Is Bitcoin Going to $100,000 Before the End of 2021 As Predicted?
The past few months have seen Bitcoin (BTC) going through extreme volatility. But the predictions that the world’s largest crypto by market cap will rally to $100,000 have been flying around the tech and financial environment over the last few months. Bloomberg senior analyst Mike McGlone recently tweeted that he believes that Bitcoin will hit the record price of $100,000 before the end of 2021.
Michael Gronager, Chainalysis CEO has been consistently bullish that Bitcoin will reach $1000 by year-end. Standard Chartered Bank's recent predictions on Bitcoin and Ethereum, the two leading cryptocurrencies, show that the former will hit a $100,000 market price before the year ends.
Why the Prediction is Bullish
The arguments in favor of Bitcoin’s potential Bull Run to the record price are based on the ongoing trend of increasing mainstream adoption of the world’s most popular cryptocurrency.
Recently, El Salvador became the first country to accept Bitcoin as legal tender. The action by the Salvadorian lawmakers and the government has triggered debates in countries like Paraguay about the potential need to include Bitcoin as a legal tender. Besides, many major developed countries such as the UK, the US, and Canada have accepted the use of Bitcoin in business transactions.
Furthermore, the existing trend shows that Bitcoin supply is declining as the Bitcoin protocol shows that there could be no supply beyond the current 21 million. Recently, Bitcoin's value experienced almost a 50% slump when it experienced a bear run from its $65,000 record price.
According to analysts, this early-summer sell-off was a consolidation period that coincided with network improvements, among other useful upgrades across the crypto space. Therefore, the consensus is that BTC is likely to pick up and move to a record price before the end-year. Currently, BTC is trading at the price of $50,000.
China Bans Cryptocurrency and its Implication
Incidentally, most of the expert price predictions of BTC and cryptocurrency, in general, came before China announced the ban of all cryptocurrency activities within its jurisdiction.
The news about the ban, which obviously affects Bitcoin, was released by China’s Central Bank that said that all transactions of cryptocurrency are illegal.
As you may be aware, China is one of the world’s largest crypto markets. Any pronouncement in the Asian giant economy has an instant impact on the global price of cryptocurrencies, including Bitcoin.
Following the ban, the price of Bitcoin fell by more than $2,000. But the ban did not affect Bitcoin for long, as the leading crypto recovered just after 2 days. It’s now trading at around $50,000 market price.
But we must also remember that China has targeted Bitcoin since 2013 when they forbid financial institutions from handling Bitcoin transactions.
The country’s crackdown on the crypto market has been renewed over the years, hence it shouldn’t be a surprise to anyone. It’s evident that the ban doesn’t have any long-term impact on the price of Bitcoin, as more use cases and adoptions are invented across the world every other day.
As of now, we can conclude that Bitcoin price’s rally to $100,000 is on course if experts’ predictions are anything to go by.
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