Bitcoin will continue its surge in 2021, British investors strongly affirm in new survey

The COVID-19 pandemic has represented somewhat of a golden age for cryptocurrency. Most notably, the value of Bitcoin has more than quadrupled during the past year.

At the same time, Bitcoin plummeted as much as 26 percent from January 10-11, evoking memories of the stark and swift collapse of cryptocurrency prices following their original surge in 2017. Shortly thereafter, Bitcoin’s climb resumed.

Do UK investors put more stock into Bitcoin’s year-long pattern of strength, or its recent volatility? According to new survey data compiled by uk.Investing.com, Brits remain bullish on cryptocurrency in 2021, particularly those who already invest in Bitcoin.

Our survey of approximately 800 respondents — including 58 percent who invest in Bitcoin and 42 percent who do not — reveals that 61 percent of UK investors believe the value of Bitcoin will rise above $60,000 during 2021. Only 17 percent believe that Bitcoin has already reached its highest point this year. Those invested in Bitcoin are particularly optimistic, with 30 percent believing its price will surpass $100,000 this year.

“After a record-breaking year in 2020 that saw it jump more than 300%, Bitcoin looks to stay strong in 2021 as more retail - and big-name institutional buyers - enter the market,” said Jesse Cohen, senior analyst at uk.Investing.com. “For those already in, the strategy in place remains to HODL.”

Among the Bitcoin investors who were surveyed, 74 percent affirmed that they plan to increase their investment in the cryptocurrency this year. Optimism on Bitcoin is apparently accelerating in more recent months, with 50 percent of Bitcoin investors reporting that they entered that space within the last three months, and 71 percent of new Bitcoin investors in the past year stating that they also entered in the last three months.

Meanwhile, 47 percent of respondents who do not currently invest in Bitcoin plan to invest in 2021. Twenty-six percent plan to make a £1-£1,000 investment in Bitcoin this year, and 21 percent are planning a £1,000 - £10,000 investment.

“The recent surge in first-time novice investors - combined with the flush of ultra-cheap money being pumped into the global financial system by the Federal Reserve and other global central banks around - have found their way into many risk-perceived assets, including bitcoin,” continued Cohen.

A majority of Brits (53 percent) identify new regulatory restrictions as the biggest threat to Bitcoin in 2021, with a pullback leading to a large selloff representing the next-largest threat (26 percent) in the estimation of respondents.

“With Bitcoin moving into the mainstream and capturing greater attention, it will likely draw further scrutiny from regulators in the United States, Europe and Asia. In particular, I’m concerned with what the Biden administration could mean for cryptos,” Cohen went on to say. “In this market, nothing seems to surprise me anymore. Bitcoin will likely reach the $60,000-level - probably in the first half of 2021. The path forward may not necessarily be as smooth afterwards however. I’m expecting a retracement. The question is just how deep will it be?”

As far as other cryptocurrencies are concerned, 83 percent of investors expect the value of Ethereum to rise this year, followed by Litecoin (35 percent), Bitcoin Cash (28 percent), and Ripple (25 percent).

Given the general trend of volatility surrounding cryptocurrency prices over time, these investments will often come down to trust — and according to our survey, that trust is there for a strong majority of British investors. A combined 64 percent of respondents say that they trust Bitcoin and other cryptocurrencies “to some extent” (46 percent) or “fully” (18 percent).

Ultimately, most British investors have spoken loudly and clearly that they do not expect the Bitcoin bubble to burst in 2021.