BTC is coming to the end of one of the biggest 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 several of the world’s biggest investors.
Now, with the bitcoin and cryptocurrency group looking ahead 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 laws – 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 twelve years, [bitcoin & 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 early days of the 1850’s gold rush, which involved even more speculating over investing.”
And 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 – one thing that’s anticipated to have an effect in 2021.
“2021 actually centers around continual developments in continuity between regular markets and 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 by crypto. There’s a lot of such use cases for crypto, so we expect these to grow quickly in the coming year. Trading will nevertheless be reflective of this adoption curve; the higher the adoption, the more bullish the overall trading mix will be, which is a bullish starting case for the main crypto assets.”
Bitcoin‘s volatility took “center stage” this year in accordance with Crosby, with the bitcoin priced falling to lows of about $4,000 per bitcoin throughout the March coronavirus crash before sharply rebounding, but added it is “almost impossible to pass over the’ Summer of DeFi,’ which echoed the primary coin offering (ICO) boom back in 2017.”
Ethereum, the world’s second-largest cryptocurrency by worth after bitcoin, has soared by 300 % over the past 12 months amid a flurry of attention in decentralized finance (DeFi) – utilizing crypto know-how to recreate conventional monetary instruments particularly insurance and loans with a lot of DeFi projects built on top of 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 seen a massive wave of futures products and options products come to market, and it’s very likely more will follow soon,” Crosby said.
“We have seen some of the’ edge case’ crypto assets be mainstream also, and this should remain in the new year.”