What will be the Fate of Bitcoin in 2021?

As we have seen the way Bitcoin hit some amazing all-time high in December 2020, will it continue with this momentum in 2021? Is the retail crowd set to rejoin the party, and also will many institutional investors continue dominating the narrative around Bitcoin?

 

As we have seen the way Bitcoin hit some amazing all-time high in December 2020, will it continue with this momentum in 2021? Is the retail crowd set to rejoin the party, and also will many institutional investors continue dominating the narrative around Bitcoin?

Institutional Investors Keep Showing Much Interest

The most common Bitcoin headline in 2020 is Institutional investment. We have so many large and small companies moving huge percentages of their fund into bitcoin. As exciting as it has been watching them fill up the Bitcoin space over a couple of years, the number is still lower than expectations. In 2021, the success of their decisions will become very clear. These steps would motivate a lot of new institutional investors to follow their lead.

And also another big achievement for Bitcoin will be sovereign wealth funds holders and governments investing in it. Will these parties be willing to make a public investment into bitcoin in 2021?

And also we have seen some new investors showing interest and trading their Bitcoin on Immediate edge, we implore you to also start today!

The impact of Bitcoin Halving

Looking at the way 2016 Bitcoin halving which is widely credited with influencing the bull run that culminated in December 2017(which is the previous all-time high before 2020's), though, it didn’t happen overnight. It took some time for the impact on supply to have a huge impact on it. In the same way, many investors have been anticipating a similar trajectory in the coming year.

The most recent halving which happened in May of 2020, saw block rewards fall from 12.5 to 6.25 bitcoin, this, in turn, reduced the release of bitcoin into the market, which makes the price of bitcoin to have increased ever since. Is history about to repeat itself? Are we going to really have the same trajectory to the price of Bitcoin? Well, this is not an easy question to answer, we can all agree that the cryptocurrency space has changed since 2017, so this is not enough guarantee, but it is possible. And also here are some other macroeconomic factors to be considered, the Covid-19 pandemic, Brexit, new government in the United States, and so many like that. Nonetheless, there are huge possibilities that Bitcoin might follow the same pattern again.

CBDCs Ready to Go

In 2020, digital currencies really had so many major wins, we saw a number of governments that made major advances in their digital currency efforts. A few months ago, the Central Bank of the Bahamas officially launched their national digital currency which is called Sand Dollar and it has been fully deployed. It is a digital version of the Bahamian dollar.

Even though the Chinese government had several years ago launched their national digital currency, there are recent reports that they will officially start issuing the digital Yuan before 2022. In addition to this, in 2020, the People’s Bank of China which is China's Central Bank published a draft law that provides some sort of regulatory framework and legitimacy for the Digital Yuan. This law states that the Yuan is the official currency of China whether in physical or digital form.

Will China CBDC change the global economy? And also will it motivate the US and European Union countries to push forward in their own efforts?

Will the New US Administration Change the Cryptocurrency Approach?

With a new administration coming in the United States, its Bitcoin cryptocurrency interests and approach are likely to change whatever happens next year, the past administration might have publicly shown no interest in Bitcoin, but it still flourished during their tenure. Now that the new administration is coming in, what changes will they bring?

May we remind you that Janet Yellen, who is Biden’s nominee to head the Treasury Department already said in the past that she is not really a big fan of bitcoin. But, given the number of institutional funds that have flooded in recently through Bitcoin, she might experience a significant and much more amount of push backs from Wall Street that may make her previous stand on Bitcoin change

So, we are hoping if the United States of America becomes more crypto-friendly in 2021, maybe other countries might follow their lead? And if so, what will any of the moves they make mean for European Countries, China, and India?

As many have predicted and suspected it will, If the bitcoin price continues to rise, this will be another opportunity for it to drive another wave of headlines and again takes its spot on every media outlets' front pages. This will definitely put cryptocurrency firmly back in the public consciousness, and therefore increases its demand by the public.

As of today, Bitcoin owners only constitute a tiny fraction of the global population, which leaves a lot of room for growth. Mass media attention, a booming asset, and also, very quick and easy access for the average person on the street to get Bitcoin would be a potentially explosive combination for Bitcoin growth in 2021 and coming years.


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