Everyone is hoping for this New Year to bring good luck, and for Bitcoin traders, it couldn’t be a better start. In January, BTC soared to dizzying new heights, up to $ 40,000 per person mint. While the market has seen some price activity since then, it looks like BTC will maintain the high position. Following the 2020 economic turmoil and increased Bitcoin adoption by mainstream financial institutions, the first cryptocurrency has nearly lived up to its nickname ‘digital gold’.
How did we get here?
Bitcoin’s triumphant volatility may have surprised some of the market followers who saw Satoshicreation dip as low as $ 4,000 in the spring. But as the global economy continued to suffer from the COVID-19 pandemic, large-scale stimulus packages from state actors meant that the traditional fiat currency was at risk of devaluation. Additionally, the 2020 halving event reduced miners’ pay, making the already limited supply of the asset even scarcer.
Investors took note, and the cryptocurrency became increasingly attractive to speculators looking for a hedge against inflation, with Goldman Sachs identifying Bitcoin as ‘digital gold’ and Paul Tudor Jones endorsing it as well. Grayscale, Fidelity, MassMutual and Microstrategy have all recently gained exposure to Bitcoin.
BTC has outperformed gold and the S&P 500 in recent years, but with higher volatility. / Wells Fargo.
Institutional investment in BTC still makes up a relatively small percentage of the market, but individual investors have taken advantage of mainstream interest through higher value for their positions. Square ($ 50 million invested in Bitcoin) and PayPal – which recently added BTC and other cryptocurrencies to its service – delve into the Bitcoin world. As more platforms explore BTC, its value as a digital asset will certainly reflect use cases beyond that of a speculative asset.
The combined value of Bitcoin and the rest of the cryptocurrency market soared to more than $ 1 trillion while prices soared across the board. But BTC’s recent climb couldn’t last forever.
BTC market now
At the time of writing, the price of Bitcoin (BTC) fell for the fourth day in a row. However, at $ 35,000, it has bounced back from a recent drop to $ 30,000 and is still well above the 2020 low of $ 3,800. Savvy analysts have pointed out that both BTC’s trading volume and active address are at new all-time highs. Meanwhile, several companies have reported a dramatic rise in Bitcoin futures contracts, and online crypto exchanges have noticed an influx of new users, with the StormGain crypto trading platform that reported a trading volume of $ 7.43 billion in the last month.
BTC’s recent achievement: start 2021 at a high level. / StormGain
More BTC is changing hands than ever, a sign of a healthy, liquid market. Bitcoin ‘whales’, or accounts with more than 1,000 BTC, are also on the rise, potentially gobbling up the smallest retail investors (less than 0.1 BTC) who panicked and sold during the dip.
Outlook for Bitcoin in 2021: Should You Invest?
Many analysts, institutional investors and crypto specialists predict bright prospects for Bitcoin for the coming year. A leaked report by a senior Citibank analyst predicted that Bitcoin could hit as high as $ 318,000 in December 2021, calling it “21stcentury gold ”.
JPMorgan strategists have said that if Bitcoin surpasses its volatility, the original cryptocurrency could rise to $ 146,000 in the long run as it overtakes gold as a safe haven. Guggenheim’s predictions are even higher at $ 400,000.
Alex Althausen, CEO of Crypto Exchange StormGain, said that Wednesday “BTC could easily reach $ 100,000 by the end of 2021. We have seen new investor interest in Bitcoin like never before, which is also boosting the other cryptocurrencies on our platform.”
Bitcoin certainly offers opportunities for investors in 2021, but the risk to retail investors is that whales could suck up even more of an increasingly scarce commodity and praise smaller investors. To maximize their profits, interested parties should look for a reliable crypto platform that offers the best return on investment and incentives to trade. Amid the Bitcoin-fueled frenzy, other cryptocurrencies should not be overlooked as BTC’s fortunes have historically increased other digital tokens, especially those that offer interesting use cases for financial platforms.
How to buy BTC
Cryptocurrency is increasingly part of the mainstream, but specialized crypto platforms still offer the best conditions for traders. A good online exchange offers trading options for BTC, XRP, ETH and other coins that can be bought with a regular bank card. The best crypto platforms also offer more advanced options such as crypto indices and DeFi tokens.
When considering a crypto exchange for investment, you should research the commission rates and bonuses for the best deal, as well as unique benefits from different platforms. For example, StormGain, one of the renowned crypto exchanges known for low commissions, also offers up to 12% APR interest on crypto holdings, which is especially appealing to long-term investors. The platform also includes free cloud mining software that can passively earn BTC for the user. Whichever exchange you choose, don’t miss the chance to stake your claim on the original cryptocurrency as the momentum of digital assets can only accelerate.
About the author: Anurag Gautam is an avid reader and Crypto Trader with a passion for creative writing for the past few years. Through writing, he wants to help people thrive in sync with bits of his knowledge. Its niche mainly includes blockchain, startups and business & technology. He has worked with startups, leaders, entrepreneurs and innovators.