Categories
Cryptocurrency

Why 2021 Happens to be Set To be Even Bigger For Bitcoin

 

BTC is actually coming to the end of one of the biggest years in its brief history.

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

Right now, with the bitcoin as well as cryptocurrency society looking ahead to a slew of developments in 2021 – like 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 resource space more” next year.

“Over the older twelve years, [bitcoin and cryptocurrencies] have risen from virtually 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
An additional Crypto Skeptic Suddenly Flips To Bitcoin – But Adds A Stark Warning “Fads don’t usually last twelve years. There are good arguments for this – reasons that each investor must hear. As we roll into 2021, we will be talking about the digital asset room more – its upside and downside.”

LaForge pointed to bitcoin’s 170 % gain this season – “that’s in addition to the ninety % gain it’d in 2019” – naming cryptocurrency investing as “a bit like living in the early days of the 1850’s gold rush, which involved more speculating over investing.”

And speculative interest from standard investors, bitcoin and cryptocurrencies have seen a surge in take up from the likes of payments giants PayPal and Square this year – something that’s likely to have an impact in 2021.

“2021 definitely centers around continual advancements in continuity between standard marketplaces and crypto markets,” Pierce Crosby, general manager at financial data business TradingView, said via email.

“A best example would be Square’s SQ +4.9 % bitcoin offering or maybe PayPal’s PYPL +2.2 % payment by crypto. There’s a lot of such use cases for crypto, and then we expect these to expand rapidly in the coming season. Trading will still be reflective of this particular adoption curve; the taller the adoption, the more bullish the overall trading blend is going to be, which is a bullish bottom case for the main crypto assets.”

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

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

“From the trading perspective, majority of the year’s focus has been on yield and structured items, we have observed a big wave of futures products and choices products come to market, and it’s likely more will follow soon,” Crosby said.

“We have seen several of the’ edge case’ crypto-assets become mainstream also, which should remain in the new year.”