BTC is coming to the conclusion 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 several of the world’s biggest investors.
Right now, with the bitcoin as well as cryptocurrency community looking forward to a slew of developments 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 asset area more” following year.
“Over the previous 12 years, [bitcoin & 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.
Bitcoin And Crypto Brace For A European Central Bank Bombshell
Another Crypto Skeptic Suddenly Flips To Bitcoin – But Adds A Stark Warning “Fads do not usually last twelve years. But there are good arguments for this – factors that any investor ought to hear. As we roll into 2021, we’ll be discussing the digital resource room more – its downside.” and upside
LaForge pointed to bitcoin’s 170 % gain this season – “that’s along with 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 more speculating than investing.”
And speculative interest from standard investors, bitcoin along with cryptocurrencies have noticed a surge in take-up from the likes of payments giants PayPal and Square this year – one thing that’s anticipated to have an impact in 2021.
“2021 actually centers around continual developments in continuity between traditional marketplaces and crypto markets,” Pierce Crosby, general manager at financial data company TradingView, said via email.
“A best example would be Square’s SQ +4.9 % bitcoin offering or PayPal’s PYPL +2.2 % payment by crypto. There are plenty of such use cases for crypto, and then we expect these to grow rapidly in the coming season. Trading will nevertheless be reflective of this adoption curve; the higher the adoption, the more bullish the entire trading blend is going to be, that is a bullish starting case for the major crypto assets.”
Bitcoin‘s volatility took “center stage” this season in accordance with Crosby, with the bitcoin price 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 original coin offering (ICO) boom back in 2017.”
Ethereum, the world’s second largest cryptocurrency by worth following bitcoin, has soared by 300 % during the last 12 months amid a flurry of interest in decentralized finance (DeFi) – utilizing crypto technology to recreate conventional financial instruments like loans and insurance with many DeFi tasks built in addition to the ethereum network.
“From the trading perspective, majority of the year’s focus has been on yield and structured items, we have observed a huge wave of futures products and choices items come to market, and it’s likely more will follow soon,” Crosby said.
“We have seen several of the’ edge case’ crypto assets become mainstream too, and this should continue in the brand new year.”