BTC is actually coming to the conclusion of one of the largest 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.
Right now, with the bitcoin and cryptocurrency community looking forward to a slew of improvements 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 advantage space more” following year.
“Over the past 12 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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An additional Crypto Skeptic Suddenly Flips To Bitcoin – But Adds A Stark Warning “Fads don’t typically last 12 years. There are many good arguments for this – factors that every investor should hear. As we roll into 2021, we’ll be discussing the digital advantage space even more – its upside and downside.”
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 more speculating over investing.”
As well as speculative interest from traditional investors, bitcoin along with cryptocurrencies have observed a surge in take up from the likes of payments giants PayPal and Square this season – something that’s likely to have an impact in 2021.
“2021 definitely centers around continual developments in continuity between regular marketplaces as well as 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 perhaps PayPal’s PYPL +2.2 % payment via crypto. There are lots of such use cases for crypto, and then we expect these to grow rapidly in the coming season. Trading will nonetheless be reflective of this particular adoption curve; the higher the adoption, the more bullish the overall trading mix will be, which is a bullish base case for the key crypto assets.”
Bitcoin‘s volatility took “center stage” this year in accordance with Crosby, with the bitcoin priced 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 worth following bitcoin, has soared by 300 % over the last 12 months amid a flurry of interest in decentralized finance (DeFi) – using crypto technology to recreate traditional monetary instruments such as for instance loans and insurance with a lot of DeFi tasks built on top of the ethereum network.
“From the trading perspective, most of the year’s focus has been on yield and structured items, we’ve seen a massive trend of futures products as well as choices products come to market, and it is very likely more will follow soon,” Crosby said.
“We have noticed some of the’ edge case’ crypto assets be mainstream too, which should continue in the new year.”