BTC is actually coming to the conclusion 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 some of the world’s biggest investors.
At this point, with the bitcoin and cryptocurrency community looking forward to a slew of innovations in 2021 – including the much-anticipated launch of Facebook’s bitcoin inspired cryptocurrency and likely industry-defining U.S. cryptocurrency regulations – Wall Street huge Wells Fargo WFC +1.5 % has said it expects to be “discussing the digital advantage space 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 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 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 even more speculating than investing.”
And also speculative interest from standard investors, bitcoin and cryptocurrencies have noticed a surge in take-up from the likes of payments giants PayPal and Square the year – something that’s expected to have an impact in 2021.
“2021 actually centers around continual advancements in continuity between traditional markets as well as crypto markets,” Pierce Crosby, general manager at financial details business TradingView, said via email.
“A best example would be Square’s SQ +4.9 % bitcoin offering or perhaps PayPal’s PYPL +2.2 % transaction via crypto. There are many such use cases for crypto, and we expect these to grow quickly in the coming season. Trading will still be reflective of this particular adoption curve; the higher the adoption, the more bullish the overall trading blend will 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 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 after bitcoin, has soared by 300 % over the past twelve months amid a flurry of attention in decentralized finance (DeFi) – utilizing crypto technology to recreate traditional financial instruments including loans as well as insurance with many DeFi tasks built on top of the ethereum network.
“From the trading perspective, virtually all of the year’s focus has been on yield and structured items, we have observed a major trend of futures goods and options items come to market, and it’s very likely more will follow soon,” Crosby said.
“We have observed several of the’ edge case’ crypto-assets become mainstream also, and this should remain in the new year.”