Cryptocurrencies in 2021: An Outlook
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Cryptocurrencies in 2021: An Outlook


Cryptocurrencies in 2021: An Outlook

Back at the end of last year, economists were forecasting a big year for the cryptocurrency, and not only from the perspective of the market-leading token Bitcoin.

In fact, while many forecasts that institutions would be increasingly inclined to invest in Bitcoin in 2020 (with this being borne out by the actions of MicroStrategy and Square), it was also predicted that retail investors would be tempted by fast-growing altcoins such as Ethereum.

In this post, we’ll look at what actually happened to the crypto market in 2020, while asking what the following year could have in store?

A Brief Summary of 2020

Both of these predictions came true in some respects, but despite this, few could have envisaged the bull run that cryptocurrencies have embarked on during 2020.

In fact, the last 12 months have proved to be the best year for crypto-asset investment since 2017, when Bitcoin broke the $20,000 barrier for the first time and the total market cap for the sector peaked in excess of $500 billion.

Such prosperity is best embodied by Bitcoin which recently saw its value peak at a record high of $23,844.72. Incredibly, this number increased from just $7,203.41 at the same time last year, while this growth shows no sign of abating anytime soon.

Given Bitcoin’s sustained growth and the growing demand amongst established institutional investors, we also saw the perception of this asset change across the globe.

More specifically, some investors turned to Bitcoin as a veritable safe haven as the coronavirus pandemic took hold this year, thanks largely to the fact that the asset wasn’t as vulnerable to macroeconomic factors such as interest depreciation or rising inflation.

Of course, the same cannot be said for traditional fiat currencies, which are influenced heavily by such factors and tend to experience huge volatility during times of economic tumult.

What Crypto Assets Such You Target in 2021?

While Bitcoin’s incredible bull run must surely come to an end in 2021, the release of a Covid-19 vaccine and return to some sense of economic normality will cause some form of correlation over the course of the next few months.

However, 2020 has undoubtedly laid the foundations for further crypto-asset growth next year, particularly among corporations who are turning to Bitcoin and similar entities as an alternative investment option.

But if Bitcoin does begin to trade sideways for a brief period, what alternative tokens are there available to investors?

Well, historic trends show us that altcoins tend to enjoy increased growth and demand in the event of a Bitcoin correction, with prominent assets like Ethereum and Ripple offering relevant cases in point. These tokens are also considerably more affordable than Bitcoin, with Ethereum priced at £459.41 as recently as December 18th.

Interestingly, Ethereum’s gains are expected to dwarf Bitcoin’s growth in the near-term, with the former (and similar assets such as Ripple) having seen their value soar by more than 30% during the last month alone.

Smaller altcoins like NEM are expected to make even bigger gains in the coming months, making them increasingly attractive amongst retail investors and those who are looking to target cryptocurrencies at the ground level.

 

The post Cryptocurrencies in 2021: An Outlook appeared first on Sweatcoin Guide.



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