Bitcoin Price Today (January 26): Latest Updates and Predictions
|Bitcoin (BTC) Price updated in real-time today January 26 and predictions for Bitcoin price tomorrow January 27, 2021. Photo: CNBC|
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Here is the Bitcoin price updated by the second. As of now, 1 bitcoin is priced at $ 31,666
|Photo: Trading View|
Bitcoin would top $50,000 in long term
Bitcoin’s price could exceed $50,000 over the longer term as the digital asset vies with gold for investment flows, according to cryptocurrency exchange Luno and brokerage OSL.
“We’re talking about Bitcoin over the next three, five, 10 years slowly inching away at gold’s market capitalization,” Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore, said in an online question and answer session with Bloomberg Tuesday. If that happens, “you are way over $50,000,” he said.
Bitcoin quadrupled last year, eventually reaching an all-time high of almost $42,000 in early January before sliding back by about $10,000. The rally split opinion, with some commentators pointing to increased interest from long-term investors and others citing speculative buying.
While Bitcoin has been popular for trading, “increasingly the new to market money that we are seeing is buying Bitcoin as a hedge to inflation and as digital gold,” said Matt Long, head of distribution and prime brokerage at digital-asset platform OSL in Hong Kong.
Predicting a price for Bitcoin is challenging but it’s likely to rise longer term as funds and family offices assign 0.5% or 1% of their portfolios to it, Long added.
Bitcoin, which has climbed 9% this year, was trading at about $31,500 as of 7 a.m. in London on Tuesday.
Which determines the price of 1 Bitcoin?
Buying a bitcoin is different than buying a stock or bond because it’s not a corporation. Consequently, there are no corporate balance sheets or Form 10-Ks to review.
Unlike fiat currencies, such as the Euro or the US-Dollar, the value of Bitcoin (BTC) is not defined by a single entity like a central bank. Instead, the price is defined by supply and demand, or in simpler terms, by the price people are willing to pay for it.
Supply and Demand
Countries without fixed foreign exchange rates can partially control how much of their currency circulates by adjusting the discount rate, changing reserve requirements, or engaging in open-market operations. With these options, a central bank can potentially impact a currency’s exchange rate.
According to Investopedia, the supply of bitcoin is impacted in two different ways. First, the bitcoin protocol allows new bitcoins to be created at a fixed rate. New bitcoins are introduced into the market when miners process blocks of transactions and the rate at which new coins are introduced is designed to slow over time. Case in point: growth has slowed from 6.9% (2016), to 4.4% (2017) to 4.0% (2018).
Secondly, supply may also be impacted by the number of bitcoins the system allows to exist. This number is capped at 21 million, where once this number is reached, mining activities will no longer create new bitcoins. For example. the supply of bitcoin reached 18.1 million in December 2019, representing 86.2% of the supply of bitcoin that will ultimately be made available. Once 21 million bitcoins are in circulation, prices depend on whether it is considered practical (readily usable in transactions), legal, and in demand, which is determined by the popularity of other cryptocurrencies.
The rules the Bitcoin network follows
Transactions added to the Bitcoin blockchain are coded and set in stone forever. Miners in the Bitcoin network compete to be the first node to solve a complex cryptographic puzzle. The winner is declared to be the first node to mine a valid block and receives the associated block reward, as cited by Bit Panda.
A new block is added to Bitcoin’s blockchain every 10 minutes after consensus in the network has been reached by all network participants on the validity of a block.
A new block is added to Bitcoin’s blockchain every 10 minutes after consensus in the network on the validity of a block has been reached by all network participants.
All transactions in the Bitcoin network have been following a precise and inalterable process since Satoshi Nakamoto created the first block called the ‘Genesis Block’. The only provision in the Bitcoin protocol that entails a change from time to time is the block reward amount that miners get, in a process called “Block Reward Halving”.
Could the Bitcoin price go to zero?
Short answer: Yes.
Fiat currencies which are not used anymore are worthless except to collectors, who will probably still pay you good money for a 100-year-old piece of paper or coin. The worth of a currency is based on its perceived value.
It’s worth noting that currencies that are no longer used usually failed as a result of the introduction of successors or incidents like hyperinflation. Such developments tend to significantly devalue affected currencies. In the case of Bitcoin, hyperinflation is not possible as Bitcoin cannot be created arbitrarily and its production is fixed to a certain amount.
In the end, the true causes of a decline in Bitcoin’s price are political pressure, technological failures, and all sorts of media coverage under the umbrella term of FUD: any type of news coverage that can potentially spread “Fear, Uncertainty, and Doubt.” Until Bitcoin really reaches the majority of the world, we can keep expecting both significant price increases as well as significant price declines to occur - for now, volatility rules.
** READ MORE: 10 Big Bitcoin Predictions: Crypto Trends in 2021
Bitcoin (BTC/USD) forecast and analysis on January 27, 2021
As part of the Bitcoin exchange rate forecast, a test of the level of 32870 is expected. Where can we expect an attempt to continue the fall in BTC/USD and the further development of the downward trend? The purpose of this movement is the area near the level of 27750. The conservative area for Bitcoin sales is located near the upper border of the Bollinger Bands indicator bars at 34160, as cited by By Markets.
Cancellation of the option to continue the decline in the Bitcoin rate will be a breakdown of the upper border of the Bollinger Bands indicator bars. As well as the moving average with a period of 55 and the closing of quotations of the pair above the 34420 area. This will indicate a change in the current trend in favor of the bullish for BTC/USD. In case of a breakdown of the lower border of the Bollinger Bands indicator bands, we should expect an acceleration of the fall of the cryptocurrency.
Bitcoin (BTC/USD) forecast and analysis on January 27, 2021, implies a test level of 32870. Further, the continuation of the fall to the area below the level of 27750 is expected. The conservative sales area is near the area of 34160. Cancellation of the cryptocurrency fall option will be the breakdown of the level of 34420. In this case, we should expect continuous growth.
For more information about cryptocurrencies, price, predictions in 2021, check out KnowInsiders regularly!
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