BTC is actually coming to the end of one of the largest years in the short history of its.
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 community looking forward 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 resource area more” next year.
“Over the older 12 years, [bitcoin and cryptocurrencies] have risen from virtually nothing to $560 billion in market capitalization,” John LaForge, head of natural 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 along with the 90 % 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 than investing.”
As well as speculative interest from regular investors, bitcoin and cryptocurrencies have noticed a surge in take up from the likes of payments giants PayPal and Square the season – something that’s expected to have an effect in 2021.
“2021 definitely centers around continual advancements in continuity between traditional marketplaces as well as crypto markets,” Pierce Crosby, general manager at financial details company 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 grow quickly in the coming year. Trading will still be reflective of this adoption curve; the higher the adoption, the more bullish the entire trading mix will be, that is a bullish bottom case for the key 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 during the March coronavirus crash before sharply rebounding, but added it’s “almost impossible to pass over the’ Summer of DeFi,’ which echoed the initial coin offering (ICO) boom back in 2017.”
Ethereum, the world’s second-largest cryptocurrency by value after bitcoin, has soared by 300 % during the last twelve months amid a flurry of interest in decentralized finance (DeFi) – utilizing crypto know-how to recreate traditional monetary instruments such as loans as well as insurance with a lot of DeFi tasks built on top of the ethereum network.
“From the trading viewpoint, most of the year’s focus has been on yield and structured products, we have observed a big wave of futures goods as well as options items come to market, and it’s very likely more will follow soon,” Crosby said.
“We have seen some of the’ edge case’ crypto assets become mainstream as well, which should remain in the new year.”