Top Cryptocurrency Forecasts in 2021

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The recent growth of the cryptocurrency market is often compared to that of the 2017 bulls. With little data available on current prices, we can only compare the current situation with that of three years ago, but what’s different this time and what will happen in the crypto market in 2021? 1. Bitcoin availability decreasing At the threshold of its own 12 years on January 3, some analysts point out the poor circulation of bitcoin coins. Pantera Capital claims that since PayPal announced its entry into the bitcoin market, the payment giant has bought the 70% of newly minted BTCs. This could have a huge impact on the liquidity of the asset depending on how PayPal and other large investors who buy BTC use their reserves . In the case of PayPal, it could be assumed that it expects to need a lot of bitcoins to meet the demand of its users later in the day. However, large investment firms may try to buy all the bitcoins available in the short term and to buy all the bitcoins possible in the long term. A contraction in supply will likely increase demand and therefore push bitcoin towards higher price values and we could see the beginning of that in 2021. 2. A new season of altcoins The 2020 could be defined, along with many other facts, the year of the DeFi thanks to the plethora of DeFi projects that experienced huge appreciation of the prices during the year. The graph shows the TVL of the DeFi (total-value-locked) in the 2020 While Bitcoin looks like it will end the year on its highest peak ever, some predict that investors will sell some of their bitcoins when we see extended side action to invest in altcoins in order to diversify their holdings in crypto. This liquidity flowing into altcoin projects will likely give some cryptocurrencies now you are underestimating huge price hikes. This is great for cryptocurrency investors who will be able to make a profit, but even more so for project developers who will use these “pumps” to fund their projects, making altcoin seasons an important and healthy part of development. for the cryptocurrency industry. The 2021 will likely see a number of altcoin follow in the wake of Bitcoin. But how do you know which of these will boom and which ones will flatten out and never come off the ground? We recommend that you follow Nik Patel’s blog , where you can find excellent resources for selecting altcoins. 3. Bitcoin boom in post halving Bitcoin experienced its third halving in May, so the reward given by blocks to miners was further halved. When these events happen, there is usually a lot of speculation about how the market will respond immediately, but what is much more telling is the date of the relative historical highs (ATH) that follow these events. As can be seen in the table below, the new highs tend to arrive in December of the year following the halving. So, if this trend is confirmed, it is likely that investors will try to accumulate bitcoins from now until next year, in December 2021, to maximize their profits. The other factor to consider is that bitcoin could spend a lot of 2021 by piling up and building higher low prices, so you can make the leap to the price of 50. 000 USD that many analysts expect for the end of year 2021. Image taken from Fitzner Blockchain’s blog at Medium 4. New financial experts enter the crypto sector In the last few months there has been a rush of institutional investors, who have invested money in bitcoins, including Square and Greyscale, as well as PayPal has instead announced the integration of cryptocurrencies in its payment platform. This trend is expected by many next year, including Ray Dalio. The billionaire was doing an AMA (ask me anything) on ​​Reddit when asked to bitcoin. Dalio wrote: “ I think Bitcoin (and some other altcoins) have established themselves in the last 10 years as interesting alternatives to assets similar to gold, with similarities and differences to gold and others mobile deposits (unlike the real estate sector) with a limited supply of wealth. Therefore it could serve as a diversifier with respect to gold and other similar deposits of assets . ” The above is in stark contrast to the Dalio’s previous comments on bitcoin, when he was very critical of cryptocurrency. In 2020, billionaires and major hedge fund managers such as Dalio in fact softened their stance on cryptocurrencies when they saw the benefits resulting from adding some digital assets to their portfolios. The positive news about the price will likely come through these folks announcing they have amassed a stake in bitcoin, hoping to encourage others to enter in the market to improve their positions. All in all, 2021 is going to be an exciting year for cryptocurrency markets, where we hope to see wider adoption and understanding of how cryptocurrencies can benefit people’s lives. The post Top Cryptocurrency Forecasts in 2021 appeared first on The Home of Altcoins: | /a>.

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