The Canaccord Genuity Group, a Toronto-based multinational, full-service investment bank focused on “growth companies,” has predicted that the price of bitcoin (BTC) will surge to $20,000 by 2021. This, according to the financial institution’s detailed market analysis report, which takes into account bitcoin’s price movements during the four-year time period from 2011-2015 and from 2015-2019.
Bitcoin Price Affected By Mining Rewards Schedule
According to Canaccord Genuity’s report, the four-year price cycles (mentioned above) may have been affected by bitcoin's mining rewards schedule - which reduces the BTC payout to miners by 50% for every 210,000 blocks produced on the Bitcoin network.
Although there may appear to be certain correlations in bitcoin’s price movements, based on the mining rewards distribution, the investment firm’s report notes: “As always, we caveat this observation with the obvious — this is simply pattern recognition and not reliable fundamental analysis.”
Stricter Regulations Could Negatively Affect Crypto Prices
In early 2018, Michael Graham, the Senior Managing Director at Canaccord Genuity, Inc., said that introducing stricter crypto regulations could negatively affect digital asset prices. Graham argued (at that time) that increased regulatory scrutiny could make it more difficult to accurately determine cryptocurrency prices.
As CryptoGlobe reported on May 9, billionaire investor Michael Novogratz, the founder and CEO of Galaxy Digital, a full-service crypto merchant bank, predicted that bitcoin's price would return to its all-time high of nearly $20,000 - which the flagship cryptocurrency reached on December 17, 2017, before entering last year's bear market.
Major Security Breaches Could Affect BTC Price
According to the Princeton University graduate, it’s unlikely that the BTC price will again drop as low as $3,200, which it hit in December 2018. However, Novogratz believes that if there’s another major security breach, such as the one which recently occurred on Binance, then it could “shatter” the newfound investor confidence in the digital asset market.
Meanwhile, legendary billionaire venture capitalist Tim Draper recently predicted that bitcoin will represent “a 5% market share of the Earth.” According to Draper, the world’s most dominant cryptocurrency will soon become one of the most valuable assets in the world.
While speaking recently at the SALT Conference, held in Las Vegas, Nevada, Draper explained that Bitcoin is a superior currency as it’s “decentralized, open, [and] transparent.” Last year, the founder and CEO of Draper Associates had predicted that the bitcoin price would surge to $250,000 by 2022.
Notably, Draper is an early bitcoin investor as he acquired around 30,000 bitcoins at the U.S. Marshals Service auction in 2014. The large amount of cryptocurrency had been seized from the now-defunct Silk Road black market.