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The first all-time high recorded by bitcoin was in 2017 when it hit the $20,000 mark. Ever since, the price of bitcoin has continued to maintain an upward momentum, for the most part. Earlier this month, this dominant cryptocurrency managed to hit a new high of $48,000 for the first time. This has created plenty of buzz in the crypto market.

Bitcoin has achieved this milestone due to corporate bitcoin adoptions by major companies. Such companies include PayPal, MasterCard, and Tesla. This article analyzes the bitcoin price forecast and factors that influence its price.

Bitcoin price forecast: Has PayPal influenced bitcoin's upward trend?

If you thought 2020 was a fantastic year for cryptos, 2021 has proved that we have not seen anything yet. When the Covid-19 pandemic began in March 2020, bitcoin's price was below $4,000. By the end of December 2020, this dominant cryptocurrency traded at more than $23,000. 

In 2021, bitcoin has seen more mainstream acceptance, with major companies embracing it. For instance, PayPal has allowed its users to buy and sell cryptocurrencies. From the start of this year, PayPal's 346 million active users can buy and sell crypto from their accounts. 

Since its launch, the platform has only supported four digital assets. They are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. American users have first access to these crypto services. The rest of the market will follow soon. 

PayPal also allowed its users to convert their crypto balance to fiat currency. These transactions are available at no extra fees and without compromising their value. Also, PayPal merchants have no extra integrations when making such transactions. 

It is also worth noting that all crypto transactions complete with fiat currency at their current PayPal rates. This addresses the previous concerns surrounding volatility, cost, and speed of crypto-based transactions. As a result, this platform increases crypto's utility in the digital marketplace. 

Furthermore, PayPal offers its account holders informative and educational content on cryptocurrencies. Thus, they will further comprehend the market, and its features, risks, and opportunities. It also provides a better understanding of the redemption and interoperability of digital coins.

Bitcoin price forecast further ahead in 2021

PayPal is one of the largest companies to embrace cryptocurrencies. The Covid-19 pandemic further accelerated its shift to digital payments. The platform seeks to capitalize on the transition from banknotes. PayPal is one of the earliest companies to adopt crypto payments from an institutional perspective.

Another major company that contributed to bitcoin's price surge this month is Tesla. Towards the end of January, Tesla made a $1.5 billion investment in bitcoin. This move also generated major buzz in the crypto market. Other major companies, like Microstrategy (MSTR), hopped on the trend. Such huge investments are likely to influence other investors to join the wave.

MasterCard also allows cryptocurrency transactions on its platform. This adds to the pool of potential users. With increased crypto adoption, its price continues to rise. Thus, increasing its chances of mainstream adoption. For instance, the cost of BTC/USD has risen to new heights thanks to these corporate adoptions. Currently, bitcoin is trading at $49,000. Many crypto experts believe that the price will continue to skyrocket. 

Let us look at some factors that influence bitcoin's upward trend.

1. Fear of missing out by investors and traders

In 2017, Bitcoin's hit $20,000. This was primarily because of passionate crypto enthusiasts. Public companies have pushed the latest bitcoin trend. Companies like PayPal, Tesla, Microstrategy, and Square, have invested millions in crypto. Such investments influenced other companies to see cryptocurrencies as viable reserve assets.

Many institutional investors fear missing out on profitable returns. Major companies have poured out billions into the cryptocurrency market. As a result, crypto's value has experienced a meteoric rise. Who does not want a piece of this lucrative crypto cake?

2. Increased chances of mainstream adoption

With PayPal's adoption and the influx of institutional investors, there is a higher chance to legitimize cryptocurrency. Even the traditional financial system is looking to embrace crypto. According to the new guidance from the US Office of the Controller of the Currency (OCC), national banks can currently take part in blockchain networks. These banks can also use stable coins to settle payments, further increasing mainstream adoption of these digital currencies.

3. High demand for a hedge against inflation

The Covid-19 pandemic has also contributed to bitcoin's price spike in recent months. During this time, many world governments eased monetary conditions and made investments worth trillions of dollars in fiscal stimulus. In turn, the value of bitcoin rose as it served as a hedge against inflation.

Since the beginning of this pandemic, many people have been looking for hard assets to invest in. Due to bitcoin's decentralized nature and limited supply, it is a worthy alternative to gold. It is also an attractive hedge asset.

Bitcoin's price forecast further ahead in the future

According to many crypto experts, bitcoin's price still shows signs of further increase, with the price expected to rise to $50,000 by June 2021. Once it hits this new high, it is likely to propel to $60,000 by the end of the year. If the price fails to hit the $50,000 mark, it will repress to $42,000 by the end of the year. 

According to digitalcoinprice.com, BTC might reach $72,160 by the end of 2021, $141,426 by the end of 2025, and $214,026 by the end of 2028. 

Conclusion

Thanks to PayPal and other major companies, the bitcoin price forecast is looking very positive. Its price continues to increase and provides new forms of settling payments. Due to these significant investments, more and more people are looking to explore and invest in the crypto market. Thus, if you are looking for a meaningful investment, you should definitely consider cryptocurrencies.

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