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 group looking ahead to a slew of improvements 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 room more” next year.
“Over the past twelve years, [bitcoin and 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 season – “that’s on top of 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.”
And also speculative interest from traditional investors, bitcoin along with cryptocurrencies have noticed a surge in take-up from the likes of payments giants PayPal and Square the year – something that is likely to have a direct impact in 2021.
“2021 definitely centers around continual advancements in continuity between standard marketplaces and crypto markets,” Pierce Crosby, general manager at financial data business TradingView, said via email.
“A perfect example would be Square’s SQ +4.9 % bitcoin offering or PayPal’s PYPL +2.2 % payment via crypto. There are plenty of such use cases for crypto, and we expect these to expand quickly in the coming year. 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 starting case for the key crypto assets.”
Bitcoin‘s volatility took “center stage” this year based on Crosby, with the bitcoin price falling to lows of around $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 after bitcoin, has soared by 300 % over the last twelve months amid a flurry of attention in decentralized finance (DeFi) – utilizing crypto know-how to recreate traditional monetary instruments such as insurance and loans with a lot of DeFi tasks built in addition to 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 noticed a massive wave of futures goods and choices products come to market, and it’s likely more will follow soon,” Crosby said.
“We have seen some of the’ edge case’ crypto-assets become mainstream as well, and this should remain in the brand new year.”