BTC is coming to the end 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 several of the world’s biggest investors.
At this point, with the bitcoin as well as cryptocurrency community looking ahead to a slew of innovations 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 resource space more” next year.
“Over the previous 12 years, [bitcoin and cryptocurrencies] have risen from virtually 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 year – “that’s along with the 90 % gain it’d in 2019” – naming cryptocurrency investing as “a bit like living in the early 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 this season – something that’s expected to have an impact in 2021.
“2021 really centers around continual improvements in continuity between traditional marketplaces as well as crypto markets,” Pierce Crosby, general manager at financial details company TradingView, said via email.
“A best example would be Square’s SQ +4.9 % bitcoin offering or PayPal’s PYPL +2.2 % transaction by crypto. There are many such use cases for crypto, so we expect these to grow rapidly in the coming year. Trading will all the same be reflective of this adoption curve; the taller 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 season in accordance with 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 primary coin offering (ICO) boom back in 2017.”
Ethereum, the world’s second-largest cryptocurrency by worth following bitcoin, has soared by 300 % over the past 12 months amid a flurry of attention in decentralized finance (DeFi) – using crypto know-how to recreate traditional monetary instruments such as insurance as well as loans with many DeFi projects built on top of the ethereum network.
“From the trading viewpoint, most of the year’s focus has been on yield and structured items, we have observed a major trend of futures products as well as alternatives products come to market, and it is likely more will follow soon,” Crosby said.
“We have seen several of the’ edge case’ crypto-assets become mainstream also, and this should remain in the brand new year.”