Categories
Cryptocurrency

Why 2021 Is Set To get Even Bigger For Bitcoin

 

BTC is coming to the end of one of the leading years in the short history of its.

The bitcoin price has surged through 2020, reclaiming its 2017 all time highs after finding support from Wall Street and several of the world’s biggest investors.

At this point, with the bitcoin and cryptocurrency community looking forward to a slew of developments in 2021 – including the much anticipated launch of Facebook’s bitcoin-inspired cryptocurrency and potentially industry defining U.S. cryptocurrency laws – Wall Street huge Wells Fargo WFC +1.5 % has said it expects to be “discussing the digital asset space more” next year.

“Over the older twelve years, [bitcoin & cryptocurrencies] have risen from literally nothing to $560 billion in market capitalization,” John LaForge, head of natural asset strategy at Wells Fargo, wrote in an investment strategy report this week.

Bitcoin, Ethereum, Ripple’s XRP, Litecoin And Chainlink In Free Fall After Bitcoin Price Crashes Under $18,000 – What is Next ? See Bitcoin News.

 Bitcoin And Crypto Brace For A European Central Bank Bombshell
Another Crypto Skeptic Suddenly Flips To Bitcoin – But Adds A Stark Warning “Fads do not generally last twelve years. However, there are many good explanations for this – reasons that any investor must hear. As we roll into 2021, we’ll be speaking about the digital advantage space more – its upside and downside.”

LaForge pointed to bitcoin’s 170 % gain this year – “that’s on top of the ninety % gain it’d in 2019” – naming cryptocurrency investing as “a bit like living in the first days of the 1850’s gold rush, which involved even more speculating than investing.”

As well as speculative interest from traditional investors, bitcoin along with cryptocurrencies have noticed a surge in take-up from the likes of payments giants PayPal and Square the year – one thing that’s likely to have a direct effect in 2021.

“2021 definitely centers around continual improvements in continuity between regular markets and crypto markets,” Pierce Crosby, general manager at financial data company TradingView, said via email.

“A perfect example would be Square’s SQ +4.9 % bitcoin offering or PayPal’s PYPL +2.2 % payment via crypto. There are plenty of such use cases for crypto, and we expect these to expand rapidly in the coming year. Trading will still be reflective of this particular adoption curve; the taller the adoption, the more bullish the overall trading mix is going to be, that is a bullish starting case for the major crypto assets.”

Bitcoin‘s volatility took “center stage” this season in accordance with Crosby, with the bitcoin price falling to lows of around $4,000 per bitcoin throughout the March coronavirus crash before sharply rebounding, but added it is “almost impossible to pass around the’ Summer of DeFi,’ which echoed the original coin offering (ICO) boom back in 2017.”

Ethereum, the world’s second largest cryptocurrency by worth after bitcoin, has soared by 300 % over the past twelve months amid a flurry of interest in decentralized finance (DeFi) – using crypto technology to recreate conventional monetary instruments like insurance as well as loans with numerous DeFi projects built in addition to the ethereum network.

“From the trading viewpoint, virtually all of the year’s focus has been on yield and structured items, we have seen a major trend of futures goods and alternatives products come to market, and it’s likely more will follow soon,” Crosby said.

“We have observed several of the’ edge case’ crypto assets be mainstream too, which should remain in the new year.”

Leave a Reply

Your email address will not be published. Required fields are marked *