BTC is coming to the end 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 several of the world’s biggest investors.
At this point, with the bitcoin as well as cryptocurrency community looking ahead to a slew of developments in 2021 – including the much anticipated launch of Facebook’s bitcoin inspired cryptocurrency and potentially industry-defining U.S. cryptocurrency laws – 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 virtually 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 on top of 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 more speculating over investing.”
And also speculative interest from regular investors, bitcoin and cryptocurrencies have noticed a surge in take up from the likes of payments giants PayPal and Square this year – something that’s expected to have a direct impact in 2021.
“2021 definitely 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 % payment via crypto. There are many such use cases for crypto, and we expect these to expand rapidly in the coming year. Trading will nevertheless be reflective of this particular adoption curve; the higher the adoption, the more bullish the complete trading mix will be, which is a bullish bottom case for the major crypto assets.”
Bitcoin‘s volatility took “center stage” this year based on 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’s “almost impossible to pass over 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) – using crypto know-how to recreate conventional financial instruments like insurance and loans 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 items, we have observed a major trend of futures goods as well as choices items come to market, and it is very likely more will follow soon,” Crosby said.
“We have noticed some of the’ edge case’ crypto-assets become mainstream also, and this should remain in the brand new year.”