BTC is actually coming to the end of one of the leading years in its short history.
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.
Now, with the bitcoin and cryptocurrency community looking forward 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 regulations – Wall Street giant Wells Fargo WFC +1.5 % has said it expects to be “discussing the digital advantage space more” following year.
“Over the previous 12 years, [bitcoin & cryptocurrencies] have risen from literally nothing to $560 billion in market capitalization,” John LaForge, head of real 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 in addition to the 90 % 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.”
As well as speculative interest from regular investors, bitcoin along with cryptocurrencies have seen a surge in take-up from the likes of payments giants PayPal and Square this season – one thing that’s anticipated to have an impact in 2021.
“2021 definitely centers around continual advancements in continuity between standard markets as well as crypto markets,” Pierce Crosby, general manager at financial details company TradingView, said via email.
“A perfect example would be Square’s SQ +4.9 % bitcoin offering or PayPal’s PYPL +2.2 % transaction by crypto. There’s a lot of such use cases for crypto, so we expect these to grow rapidly in the coming year. Trading will still be reflective of this adoption curve; the taller the adoption, the more bullish the entire trading blend will be, which is a bullish bottom case for the key crypto assets.”
Bitcoin‘s volatility took “center stage” this year in accordance with Crosby, with the bitcoin priced 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 initial coin offering (ICO) boom back in 2017.”
Ethereum, the world’s second-largest cryptocurrency by worth following bitcoin, has soared by 300 % over the last 12 months amid a flurry of attention in decentralized finance (DeFi) – using crypto technology to recreate conventional monetary instruments such as for instance insurance and loans with many DeFi projects built on top of the ethereum network.
“From the trading viewpoint, nearly all almost all of the year’s focus has been on yield and structured products, we have observed a tremendous trend of futures products as well as choices items come to market, and it’s likely more will follow soon,” Crosby said.
“We have noticed some of the’ edge case’ crypto assets be mainstream too, which should remain in the new year.”