Bitcoin's value could hit $400,000 in 2021, according to experts.
The cryptocurrency has seen its value increase dramatically amid the coronavirus pandemic and Bloomberg has now suggested that it could even reach $400,000 later in the year, partially due to inflation fears.
The reports reads: "To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since the 2011 high."
Bloomberg also pointed to a "shifting global tide” in favour of Bitcoin over gold, as well as a host of high-profile investors coming out in support of the cryptocurrency.
The report added: "Even with speculative excess in the broader crypto market, we believe Bitcoin is less prone to a sustained trip up. The imminent launch of Bitcoin-oriented US exchange-traded funds is another bullish underpinning."
Meanwhile, Tesla bought around $1.5 billion of Bitcoin in January.
Elon Musk's car company announced the acquisition and revealed that, one day, the firm expects to accept it as a form of payment.
In a stock market statement, Tesla said: "We expect to begin accepting Bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis."
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