BTC is actually coming to the end of one of the biggest 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 some of the world’s biggest investors.
Right now, with the bitcoin and 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 regulations – Wall Street giant Wells Fargo WFC +1.5 % has said it expects to be “discussing the digital asset space more” next year.
“Over the past twelve years, [bitcoin & cryptocurrencies] have risen from literally nothing to $560 billion in market capitalization,” John LaForge, head of natural asset program 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’d in 2019” – naming cryptocurrency investing as “a bit like living in the first days of the 1850’s gold rush, which involved more speculating than investing.”
And also speculative interest from standard investors, bitcoin along with cryptocurrencies have seen a surge in take-up from the likes of payments giants PayPal and Square the season – one thing that is anticipated to have an impact in 2021.
“2021 definitely centers around continual improvements in continuity between standard marketplaces as well as crypto markets,” Pierce Crosby, general manager at financial details company TradingView, said via email.
“A best example would be Square’s SQ +4.9 % bitcoin offering or perhaps PayPal’s PYPL +2.2 % transaction by crypto. There are plenty of such use cases for crypto, and we expect these to expand quickly in the coming year. Trading will nevertheless be reflective of this adoption curve; the taller the adoption, the more bullish the complete trading mix will be, which is a bullish bottom case for the key crypto assets.”
Bitcoin‘s volatility took “center stage” this season according to Crosby, with the bitcoin price falling to lows of about $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 value following bitcoin, has soared by 300 % during the last 12 weeks amid a flurry of attention in decentralized finance (DeFi) – utilizing crypto know-how to recreate conventional financial instruments like insurance as well as loans with numerous DeFi projects built on top of 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 as well as alternatives items come to market, and it is very likely more will follow soon,” Crosby said.
“We have noticed several of the’ edge case’ crypto-assets be mainstream too, which should continue in the new year.”