At the beginning of 2021, the oldest cryptocurrency in the world, Bitcoin, saw an all-time peak of more than $35,000 on 6 January 2021, which is not shocking for retail investors as well as high net worth individuals who perceive BTC to be a shield against exceptional fiscal stimulus initiatives.
The year 2020 also saw various examples of institutional investors turning their focus to the most famous crypto currency in the world. For e.g., one of the largest insurance companies, MassMutual, bought $100 million from Bitcoin in December 2020.
We projected the crypto market to grow from the end of 2020 to 2021. The distinction between this year’s bull and the one in 2017 is that the previous bull was powered by private investors and some whales. However, this year’s bull run is mostly powered by institutional investors driving up the market.
To get a sense of how troublesome the market was, just look at 2018: by 2018, Bitcoin sold for close to $13,500 despite touching an all-time high of $19,783.06 in December 2017. Subsequently, it fell as low as $3,400, a decline of around three-quarters of its value—and other digital currencies were not faring any better at the moment.
Ethereum (ETH), for example, fell from an early-year high of $1,300 to just $91 by December 2018, before returning to over $450 by the end of 2020. Crypto currencies like Bitcoin and Ethereum have also been shown to be resilient. Investor interest in digital currency, both retail and institutional, has grown significantly in recent months. Yet there are still reasons to think that the blockchain market has some battle left behind.
Investors inquire again: how far digital coins will fly? And Bitcoin has already risen back to all-time highs as of December 2020, hitting over $23,625 and Ethereum almost $700.2 Currently, thinking back to the end of 2020 to 2021, the best concern may be how this room will evolve to survive.
New industries such as the MLM industry is also venturing into the crypto market by building the best MLM software by a cutting-edge MLM software company. These integrations are mainly driven to facilitate the payments infrastructure in the industry.
Stable coins are digital currencies that are attached to a fiat currency that serves as an insurance mechanism against the possible collapse in underlying crypto currency collateral prices—and could just be the industry’s best hope of 2021.
Stable coins may see development next year for two reasons: one, as a result of the long-term volatility of non-centralized tokens; and two, the current leader in the stable coin market, tether, is in a position to be dethroned.
The best MLM software developed by a cutting-edge MLM software company can integrate Stable coins in the software that is strictly built as per the business requirements.
While the trading numbers for individual investors are down in many instances, the institutions are climbing on board in a substantial way for the first time. Institutional investors encourage far greater trade volumes than other individual investors, which means that even though less trading partners are trading in the digital currency sector, the market can still maintain itself.
There are several future changes planned to take place in 2020 and 2021 that could have a major effect on institutional interest in the digital currency industry. If crypto is floating on the Nasdaq or a comparable market, for example, it would automatically receive a rise in reputation—and likely valuation.
The best MLM software built by a reputed MLM software company can help in enhancing the value of the offering. This specialized software’s now come with crypto integrations to facilitate seamless payments for clients.
Although it’s impossible to predict which, if any, digital currencies will see drastic price gains in 2021, we can safely say that crypto currencies won’t go away anytime soon. Although the best MLM software built by a credible MLM software company will drive in sales and revenue, institutional investors will surely drive the market forward.
Blockchain, the fundamental infrastructure behind many crypto currencies, has expanded well beyond the digital coin sector and is expected to see new implementations this year. Governments and regulators will continue to collaborate closely on how best to promote and regulate digital tokens.
Conclusion
What a fantasy Bitcoin has had, at least until the latter half of 2020. The bull run lasted until 2021 when the BTC price had hit $40,000 at the beginning of January, and since then it has not fallen below $30,000. This rally was primarily guided by hedge funds and institutional investors.
By incorporating BTC into their payment options, PayPal and Square now allow customers to make payments in cryptocurrencies. MassMutual, one of the biggest insurers, have purchased Bitcoin worth $100 million in December 2020. If financial giants are shown to acquire digital currencies, it gives merchants confidence to invest in the crypto market as well.
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