Bitcoin: How far will your price go in 2021? What the experts say
There's no doubt that Bitcoin is at the top of the list of amazing events of 2020. Let's keep in mind that 2020 started with a BTC of $7,236, which now stands at $28,265. Exponential growth!
However, this year's Bitcoin rally wasn't a straight line, there were several declines that once again put many crypto investors in doubt.
In fact, after Black Thursday, many condemned Bitcoin after it failed to deliver on its promise to be stronger than traditional markets. However, the leading crypto proved its potential and attracted multiple institutional investors who now make up a substantial part of the market.
Now that we know what happened, we ask ourselves: What does 2021 hold for Bitcoin? As always, there are multiple opinions in the crypto community: some think that crypto leader will reach six figures while others see the end of Bitcoin due to regulatory obstacles.
For example, Tom Fitzpatrick, an analyst at Citibank, said Bitcoin could skyrocket to $318,000 by December 2021. Also, Mike McGlone, an analyst at Bloomberg, said Bitcoin is poised to continue its rebound through 2021 and potentially see a price resistance of $50,000.
According to CNBC, the crucial trends for Bitcoin in 2021 are Increased general acceptance, increased competition from Big Tech, increased competition from central banks, a new regulatory field and, of course, volatility will continue.
However, not everyone can be optimistic. Nouriel Roubini, argues that the leading crypto will collapse as a result of future regulation.
DeFi: A market that emerged in 2020, what will happen in 2021?
This year was a key year for the adoption of decentralized finance (DeFi) in the crypto market. In fact, in just twelve months, the total value locked in DeFi has increased by 2,000%. But what will happen in 2021?
Some in the crypto market have argued that the speed with which money has flowed into space resembles the ICO boom in 2017, predicting the potential failure of DeFi.
However, others claim that DeFi has the potential to change the world, mainly by changing the fact that billions of people have no access to financial services.
Thus, Brian Brooks said that we are still at the beginning of the industry and therefore, this is just beginning.
However, there are risks that we must take into account in 2021 such as security and scalability within the Ethereum network. And, while it is unlikely that the 2020 boom will be repeated, the crypto community could experience alternating stages of stagnation and rebound.
Europe focuses on a CBDC and the Stablecoins
Stablecoins and CBDC will play an important role in the crypto market during 2021
As many will know, the Stablecoins have played a key role in the adoption of cryptomonies in 2020. Especially considering that they have been the entry mechanism to the crypto market for many.
In fact, the world's central banks have focused their attention on them and have been inspired to develop Central Bank digital currencies (CBDC).
Therefore, the increase in projects from countries developing their own CBDC is practically assured in 2021. So much so that the crypto market is no longer wondering if it will happen, but when it will.
According to a survey published by the Bank for International Settlements in early 2019, 70% of the banks surveyed were already studying the potential of issuing a CBDC.
But, as many of us know, the COVID-19 pandemic had a major impact on the world economy and therefore increased the attention of Central Banks to CBDCs.
In addition, China's progress in its pilot tests has generated FOMO among the world's central banks and, as it progresses, is likely to generate more pressure.
So in 2021 we expect an increase in CBDC projects around the world with progress from the China project.
Blockchain technology in the run-up to 2021
Blockchain technology will continue to demonstrate its potential in 2021
Although we have seen progress in 2020 in the adoption of Blockchain technology, the community expects 2021 to be the year when the technology is actually understood and applied.
In fact, according to a Forrester report, 2020 has been a key year for the growth of Blockchain technology at the enterprise level and the DLT technology space.
In addition, the report points out that almost all of the 2020 initiatives will move from the pilot phase to the production phase during 2021, including solutions such as those of Alibaba, Huawei, IBM, among others.
