Bitcoin is coming to the end of one of the greatest years in its short history.
The price of bitcoin has soared through 2020, regaining its all-time highs in 2017 after finding support from Wall Street and some of the world’s biggest investors.
Now, with the bitcoin and cryptocurrency community looking forward to killing a number of developments in 2021 – including the highly anticipated launch of Facebook cryptocurrency inspired by bitcoin and potentially defining the US cryptocurrency regulatory industry – Wells Fargo, Wall’s giant Street.
“Over the last 12 years, [bitcoin and cryptocurrencies] has 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.
“Pads don’t usually last 12 years. There are good reasons for this – reasons that all investors should hear. As we roll into 2021, we will discuss the digital asset space more – upside down and its a disadvantage. “
LaForge highlighted bitcoin’s 170% gain this year— “that’s on top of the 90% gain it had in 2019” – citing cryptocurrency investing as “a bit like living in the early days of the 1850s gold rush, which meant more guess not invest. “
In addition to speculative interest from traditional investors, bitcoin and cryptocurrencies have seen a surge in take-up of payment giants PayPal and Square this year – something that is expected to make an impact in 2021.
“2021 really focuses on continued improvements in continuity between traditional markets and crypto markets,” Pierce Crosby, general manager at financial data firm TradingView, said via email.
“A perfect example would be Square’s
Bitcoin volatility took a “hiatus” this year according to Crosby, with the bitcoin price dropping to lows of around $ 4,000 per bitcoin during the March coronavirus crash before a sharp rebound, but added that it was “almost impossible to pass over Summer DeFi, ‘which echoed the initial coin offering (ICO) boom back in 2017. “
Ethereum, the world’s second-largest cryptocurrency by value after bitcoin, has risen by 300% over the past 12 months amid growing interest in decentralized finance (DeFi) – using crypto technology to recreate traditional financial instruments like loans and insurance with many. DeFi projects built on top of the ethereum network.
“From the trading point of view, most of the year’s focus has been on structured products and products, we’ve seen a huge wave of futures and options products coming to market, and more are likely to follow soon, ”Crosby said.
“We’ve seen some of the ‘fringe case’ crypto-assets become mainstream too, and this should continue in the new year.”