The cryptocurrency market and especially Bitcoin had a period of ups and downs in 2021. In the Q4 Bitcoin hit considerable heights – surpassing the mark of $20,000 and shows no signs of slowing down?
What are the possible predictions for Bitcoin in 2021? We will talk about them in the following article.
Increase of the state intervention
The state’s presence in the cryptocurrency market will increase. We will see attempts to either rigidly verify and control everything, or to ban, as in the case of Ripple. National digital currencies will start to enter the mass-market and we will see their collision with Bitcoin.
Also, the collapse of the existing financial system is also expected, so cryptocurrencies can take off very strongly.
No signs of slowing down
Cryptocurrency can no longer be stopped and the world will no longer exist without it. Even football clubs already have their own token.
The world is no longer the same as it was three years ago when the first rapid growth of Bitcoin occurred. Regulators of many countries during this period seriously worked out their legislation somewhere professionally, somewhere not very. Cryptocurrency in the laws assigned different definitions, there was responsibility, the requirements for regulation have become more accurate and clear.
A strong gap in all legislation is the lack of a competent connection between the judicial and executive systems with cryptocurrency. The law is good, but how to resolve disputes, how to prove and execute – it is unclear, not only citizens but also judges and bailiffs.
Obviously, in 2021, owning a cryptocurrency and going unnoticed will be more difficult, but maneuvers for the scam will be much less, which can not but please because cryptocurrency is more about the benefit to society than about deception.
End of the hype?
Predicting what will happen to Bitcoin is an extremely tough thing. The euphoria of the end of 2020 from the growth of the Bitcoin rate continues, but the hype could end in 2020. Cryptocurrencies have once again attracted the attention of the regulator and belt-tightening is coming. Anticipating possible regulatory risks, institutionalized institutions will probably want to fix their profits, followed by a deep correction throughout the market.
In the first half of 2021, we should expect a wave of interest in the first-tier altcoins, and a new surge of DeFi is likely.
The digital economy will grow
Although the coronavirus pandemic has caused irreparable damage to world economies, for many industries it has become a new starting point for further development.
After the pandemic, the role and importance of the digital economy will only grow, and this will potentially lead to even greater adoption of cryptocurrencies around the world. Companies will continue to work on products that change the market and reduce barriers to entry.
In 2021 the cryptocurrency market will still be attractive for both institutional investors and private investors, and investors’ attention will already be focused not only on Bitcoin but also on altcoins. It is hard to talk about the forecasts of the price of Bitcoin – we are not magicians, and sometimes our fantasies may not coincide with reality.
In 2021, we will witness a number of pilot projects on the introduction of CBDC, initiated by central banks in many countries. The market of stable coins will continue to grow actively.
It is expected that will see more transparency and clarity on regulatory issues. Binance is actively working with many regulators around the world to help positively influence rules that will benefit the entire industry.
In 2020, we all hoped to see an explosive increase in crypto payments, but this never happened. Entering the arena of such giants as PayPal will certainly give a huge boost to this trend in 2021. The penetration of cryptocurrencies into the sphere of traditional payments will also continue actively.
Ethereum enters the field
Ethereum 2.0 has entered the engineering phase, which means that over the next year it will be “touched.” The network will move into full existence along with a dozen new projects at the start.
Cosmos, Filecoin, Solana, Near, Free TON, Cardano, and DFinity are also worth paying attention to. From them, you can expect new releases and steps that many projects before crypto-winter, even with funds, could not do.
What will the correction change?
The cryptocurrency market from the new year is waiting for certain volatility. Obviously, they can still draw attempts of some growth, but then, for sure, there will be a tough correction.
The problem is that a lot of people who have earned and additionally came a huge number of people who have not heard about cryptocurrency at all. If newcomers come to the market, it does not happen that they are not “loved” and they are “loved” necessarily, and the price will fall. The only question is whether it will fall from $29,000 or $32,000 – we don’t know.
Most likely, the correction will go at the same time as the correction in the stock market and other assets.