Price Predictions for Bitcoin and Ethereum
Here are a selection of price predictions for Bitcoin and Ethereum. They are from reputable institutions and individuals analysing the crypto space.
At the moment there are not that many because the Bitcoin cycle topped in November 2021. However this page is updated as and when new price predictions come in.
Bitcoin Price Predictions
JP Morgan report suggests Bitcoin price could reach $650k
21 Dec 2020
‘Enormous wall of money’ will send Bitcoin to $1M in 2025 — Raoul Pal
16th Oct 2020
Ethereum Price Prediction
Ethereum price prediction 2021-2025: is the target of $9,000 realistic?
2 Feb 2021
Price Predictions Featured on This Page
The price predictions on this page are provided by some prominent investment firms or individuals in finance. For example we have had price predictions of JP Morgan, Plan B, Citibank, Frank Holmes and Brian Norton.
They had been eyeing the crypto space for some time. Most especially Bitcoin and Ethereum which have gotten the most attention. These analysts got pulled into the space and decided to analyse Bitcoin and perhaps some other cryptos properly. Hence they came out with their price predictions.
So far there are not that many people that are giving out price predictions. Additionally price predictions are not always made public. Citibank for example had their Bitcoin price prediction leaked out to the press in 2020. Their price prediction was about the price target they had for Bitcoin for the end of 2021.
The price predictions that are featured on this page are long term predictions. In other words the values at which analysts think the prices of cryptocurrencies featured are going to end up eventually. Looking at a year time frame or even more. Sometimes some analysts make predictions for 5 or 10 years out.
Price predictions are really hard to get right, most especially long term. In fact quite a lot of analysts do not agree on where the price will end up, as you can see from the variation in Bitcoin predictions for 2022 and Bitcoin predictions for 2023.
On the other hand analysts have a lot of tools at their disposal they can use. These tools help them create an overall narrative, analyse the charts and come up with their predictions.
How Analysts Figure Out Price Predictions
Tool and Resources
Analysts have all sorts of tools to help them make price predictions. Usually they have several team members they can rely on and use as a resource.
Team members usually have different skill sets and can rely on their individual strengths. As a result they can contribute to the analysis with different points of view. Together they discuss and are better able to form ideas on what is going on in the market.
Secondly they use various online professional level platforms that have hundreds of tools for analysis. They also get feedback on what is going on in general.
Whether that is for example the markets, politics, monetary policy, financial policy, innovation and any other related topics. Essentially anything that could impact the price of an asset.
Moreover analysts also use different models. To figure out which model to use analysts look at the price action. They look at charts showing long periods of time. Additionally they take into account the type of asset they are analysing.
Like this they can see which model works best. As a result they try to project future trends and come up with price predictions.
Sometimes they cannot figure out which model is the best to use at the time. So they might be tracking several at one go. As a result they give a price prediction based on a range.
For example PlanB is looking at the floor model, the stock-to-flow model and the stock-to-flow cross asset model. This is because at some point some models will break. Hence the model will be discarded and not used any more.
The models that are left will end up being used instead. However this is not to say that one model will be the winner. This is because crypto in general is still maturing.
As a result different models would be more suitable for different time periods. So the model used would depend on the maturity of each individual crypto.
There is a law called Metcalfe’s law. The law is used to not just make Bitcoin price predictions, but other price predictions as well. Originally it was used to value other investments.
Essentially it can used for anything that is on a network. To clarify anything that can benefit from what is known as network effects.
A network cost can increase linearly with the cost of maintaining the network. However when users jump onto the network the value of it is square to the number of users.
As a result the more users there are on the network the higher the network is valued. It will go up exponentially. This is the case for increased adoption of Bitcoin, Ethereum and any other crypto.
The price predictions for Bitcoin on this page are based on the top for the cycle. What does this mean? The price predictions are for the market peak. This is based on what is called the Bitcoin halving cycle.
To clarify Bitcoin goes through its cycle peak and bottom around every 4 years. Albeit it is changing because it is extending. In fact Bitcoin price predictions, Ethereum price predictions and other crypto predictions are based on this.
Bitcoin starts going up first and it pulls every other crypto up with it. If it goes down it pulls everything else down with it. Of course this excludes altcoin season. At least thus far this is what has happened.
So when analysts extrapolate data and make their price predictions they take this into account. At the moment there is some uncertainty when this cycle will peak. However at this rate it will peak in 2022.
The Surge of Bitcoin
Bitcoin has taken many by surprise. Most people had not heard about it until some years back when it started to get more attention. However after so much time has passed since it launched almost everyone has heard about it.
The thing about Bitcoin is that it goes up in price and then down again. It has had some large 80-90% crashes. On the other hand it never crashed lower than the previous low.
This is the reason why the price of Bitcoin keeps rising. It is still in a bull market and will remain so for a while. The crux of the matter is that thanks to blockchain it is innovating money itself. It is an innovation that is not going anywhere. Additionally Bitcoin has a budding DeFi ecosystem of its own which should attract more interest.
Hence why the price of Bitcoin keeps rising. You can think of it as the equivalent type of innovation as the internet. The internet had a profound effect on our lives.
This is why people started making Bitcoin price predictions. Additionally why there are some other price predictions for other cryptos. Similarly also Ethereum price predictions.
In fact the attention on Bitcoin is getting more institutional interest. In the sense that they are considering to invest in Bitcoin.
Large companies have been taking note of Bitcoin’s rise and its price predictions. Additionally reputable analysts are also calling higher Bitcoin price predictions.
As a result they are studying it themselves. Additionally there are some financial experts that are organising conferences and meetings to promote Bitcoin and crypto.
It has come to the point where institutions are only just starting to get into Bitcoin. Once some start doing this it will influence the trend of adoption.
Where Are We At?
Some analysts are saying the minimum amount of Bitcoin that should be in a portfolio is 1%. Of course you cannot get much lower than 1%. However, so far there are not many companies that have allocated a small portion of their portfolio in Bitcoin.
There are talks in progress among institutional investors about doing just that. They consider it safe to allocate 1-2% to Bitcoin. However, some have noticed some of the Bitcoin price predications and gone and allocated much more.
MicroStrategy for example is one of those companies. They keep adding head turning sums of Bitcoin to their portfolio.
Long Term Bitcoin Price Predictions
There are some long term Bitcoin price predictions that sound like they are really out there. However it all depends on the rate of adoption.
Bitcoin is the first cryptocurrency that came onto the crypto scene. It is purely made for exchanging value and nothing else.
Additionally it seems to have perceived value, otherwise it would not continue going up in price. In other words people accept Bitcoin for what it is. As mentioned earlier there is going to be institutional adoption.
As a result it is set to grow from having 130million users in 2021 to 1billion within 4 years.
Sourced from Nasdaq
Each crypto depends on new entrants onto its network and hence more adoption. As a result Bitcoin is going to continue rising in price. This is because it is a scarce asset; there is a fixed supply of Bitcoins which is 21 million coins.
This means that the price of Bitcoin should continue going up. Above all if there are going to be so many people adopting it. In fact some of the Bitcoin price predictions on this page might not be that far-fetched.
Ethereum Is Rising In Price
Bitcoin was stealing all the thunder from all other cryptocurrencies. There was a point not long ago when it was difficult to get any Ethereum price predictions from reputable sources.
That is changing now since there have been developments with DeFi and the Metaverse. This is because DeFi and the Metaverse require Ether. Ether is needed either to move forward with development or to take part in the ecosystem.
To clarify a lot of people do not know the extent of the amount of investment going into DeFi. For example back in January 2020 there was almost $1 billion invested. However in Jan 2021 it was almost $28 billion. You can keep track of the amount of investment in DeFi on DeFi Pulse.
The point is that it is not just Bitcoin that is going up. Ethereum is too and so are other cryptocurrencies. As a result of investor interest in cryptos there are bound to be more Ethereum price predictions in future.
Long Term Ethereum Price Predictions
Brian Norton was right when he said that Ethereum is a sleeping giant. He thought the Ethereum price could double in 2021. However the Ethereum 800% gains for 2021 that Thomas Yeung wrote about on Yahoo Finance did not pan out.
The cycle for the Bitcoin halving is getting longer. Additionally Bitcoin pulls all other cryptocurrencies with it. Whether that is up or down. So some Ethereum price predictions did not pan out for that reason. The value might be right, but the timing is off.
By time the Ethereum chart will get more clear. As a result there are more Ethereum price predictions. There are not that many Ethereum price predictions for 5 to 10 years out. Mostly analysts have been focusing on the medium term Ethereum price predictions.
Expert Crypto Advisors
If you would like to invest or trade cryptocurrency it might be better to follow some people or firms. Ideally you should follow those that have a better idea of the market and are able to do good analysis.
There are some expert advisors that we recommend who provide this sort of service. Either for free or they charge for their service. Note some of them just provide information and it is not meant as investment advice. Additionally different advisors charge different rates depending on what sort of service they offer.
For example Incrementum AG is an asset management company. They have a couple of funds that invest in crypto and a mix of other assets. To clarify they manage client funds so you do not need any price predictions to trade.
They actively select the investments and manage your funds for you. As a result they are the most expensive advisor. On the other hand there are others that give short term trading probabilities.
These companies are usually cheaper and are on a subscription basis. One such company is The Crypto Vigilante.
There are also a couple of free accounts you can follow. These are Real Vision Crypto and PlanB on Twitter. They talk about the crypto market in general. They give out free information, analysis and project price predictions.