The world of crypto was one of the few areas that were not as adversely affected by all that happened in 2020. As a matter of fact, it is safe to say that the sector even went on to balloon as more people had time to get acquainted with it and chose to go with it as a safe haven of sorts. Perhaps the biggest success story is that of Bitcoin which has been enjoying a lot of great publicity towards the end of 2020 and during the first few days of January 2021.
On Monday, Bitcoin traded at $33,365 which while still very impressive is over $1,000 short of its record high of a whopping $34,800 – the digital currency hit the record high on Sunday, January 3. Needless to say, this is a huge milestone for the digital currency especially because its current price is an increase of 800 percent from its price in Mid-March. That was right before the pandemic began to wreak havoc in many parts of the globe.
High Hopes for 2021
As the world struggles to get back to how things were before the coronavirus pandemic hit, the world of crypto seems to be gearing up for an even better year ahead. Now more than ever more people are well aware of the benefits that crypto has to offer and that seems to be driving the insatiable appetite for digital assets such as Bitcoin.
One of the reasons why Bitcoin has taken center-stage can be attributed to its supply cap which many believe is a hedge against the risk of inflation especially now as some government and central banks turn on stimulus taps. Moreover, fears of a weaker dollar have led investors to look for safe-havens comparable to gold – Bitcoin has fitted that bill for lots of them.
According to experts from Fundstrat, an independent financial research firm, all that is happening right now in the world of crypto may have already happened back in 2017. The same “parabolic rise” we witnessed back then is making a comeback albeit on a much larger scale.
“We believe the conditions remain in place for a continued rally in bitcoin and crypto more broadly over the next 6-12 months. Institutional and corporate buying, regulatory de-risking, and retail stimulus demand are factors that have led to an increase in positive momentum, which we believe can continue.”
David Grider, Fundstrat’s digital asset strategist.
For any crypto-related business, 2021 is certainly going to be an interesting year. Besides the anticipated growth, there is a lot of optimism that crypto could finally get the mainstream attention it deserves.