BTC is actually coming to the conclusion of one of the largest 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 and cryptocurrency community looking ahead to a slew of innovations in 2021 – including the much-anticipated launch of Facebook’s bitcoin inspired cryptocurrency and potentially industry defining U.S. cryptocurrency regulations – Wall Street huge Wells Fargo WFC +1.5 % has said it expects to be “discussing the digital resource space more” following year.
“Over the older twelve years, [bitcoin & cryptocurrencies] have risen from virtually nothing to $560 billion in market capitalization,” John LaForge, head of real 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 season – “that’s on top of 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 even more speculating over investing.”
As well as 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’s anticipated to have a direct impact in 2021.
“2021 definitely centers around continual developments in continuity between traditional marketplaces 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 maybe PayPal’s PYPL +2.2 % payment by crypto. There are many such use cases for crypto, and then we expect these to expand rapidly in the coming season. Trading will all the same be reflective of this adoption curve; the higher the adoption, the more bullish the overall trading blend is going to be, which is a bullish bottom case for the major crypto assets.”
Bitcoin‘s volatility took “center stage” this year according to 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 value after bitcoin, has soared by 300 % over the past 12 weeks amid a flurry of attention in decentralized finance (DeFi) – utilizing crypto technology to recreate conventional financial instruments including loans and insurance with numerous DeFi tasks built on top of the ethereum network.
“From the trading viewpoint, most of the year’s focus has been on yield and structured products, we have observed a massive trend of futures products as well as alternatives products come to market, and it is likely more will follow soon,” Crosby said.
“We have noticed some of the’ edge case’ crypto assets become mainstream as well, which should continue in the brand new year.”