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 group looking forward to a slew of improvements in 2021 – like the much anticipated launch of Facebook’s bitcoin inspired cryptocurrency and likely industry defining U.S. cryptocurrency regulations – Wall Street giant Wells Fargo WFC +1.5 % has said it expects to be “discussing the digital advantage area more” next year.
“Over the previous 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.
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LaForge pointed to bitcoin’s 170 % gain this year – “that’s along with the ninety % gain it had 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 over investing.”
And also speculative interest from traditional investors, bitcoin and cryptocurrencies have observed a surge in take-up from the likes of payments giants PayPal and Square this season – something that is likely to have an impact in 2021.
“2021 really centers around continual developments in continuity between traditional 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 perhaps PayPal’s PYPL +2.2 % transaction by crypto. There are lots of such use cases for crypto, so we expect these to grow quickly in the coming year. Trading will nevertheless be reflective of this adoption curve; the higher the adoption, the more bullish the complete trading mix will be, that is a bullish starting case for the key crypto assets.”
Bitcoin‘s volatility took “center stage” this year based on 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 over 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 weeks amid a flurry of attention in decentralized finance (DeFi) – utilizing crypto technology to recreate conventional financial instruments particularly loans as well as insurance with many DeFi tasks built on top of the ethereum network.
“From the trading viewpoint, majority of the year’s focus has been on yield and structured items, we have noticed a massive trend of futures products and alternatives products come to market, and it is likely more will follow soon,” Crosby said.
“We have seen several of the’ edge case’ crypto assets become mainstream also, which should continue in the brand new year.”