BTC is 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 as well as cryptocurrency society looking ahead to a slew of improvements in 2021 – including 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 area more” next year.
“Over the older 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 along with the 90 % gain it had in 2019” – naming cryptocurrency investing as “a bit like living in the original days of the 1850’s gold rush, which involved more speculating than investing.”
And speculative interest from regular investors, bitcoin along with cryptocurrencies have observed a surge in take-up from the likes of payments giants PayPal and Square this year – one thing that is expected to have a direct impact in 2021.
“2021 actually centers around continual improvements in continuity between standard markets as well as crypto markets,” Pierce Crosby, general manager at financial details business 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 are many such use cases for crypto, and then we expect these to grow quickly in the coming season. Trading will all the same be reflective of this adoption curve; the taller the adoption, the more bullish the complete trading blend 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 priced falling to lows of about $4,000 per bitcoin throughout the March coronavirus crash before sharply rebounding, but added it’s “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 % over the past twelve weeks amid a flurry of interest in decentralized finance (DeFi) – utilizing crypto know-how to recreate conventional monetary instruments particularly loans and insurance with many DeFi projects built along with the ethereum network.
“From the trading perspective, majority of the year’s focus has been on yield and structured products, we have noticed a huge wave of futures goods as well as choices items come to market, and it is likely more will follow soon,” Crosby said.
“We have observed several of the’ edge case’ crypto assets become mainstream too, which should remain in the brand new year.”