Market excitement may drive cryptocurrency prices higher, predict experts, as more investors and institutional funds move into the crypto market in 2021.
The cryptocurrency market has a promising future, providing more opportunities to users in 2021. Innovation continues to bring in new products, and the crypto market is flooded with new cryptocurrencies. Traditional banking services are going to implement Bitcoin in their services, say experts. In 2020, Square and PayPal provided crypto solutions to their customers, which have introduced new users into the crypto market. The cryptocurrency is expected to attract more investors into the crypto market in 2021, as institution funds flow into the market.
2021 Cryptocurrency Predictions and Targets
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Experts predict a hefty upwards move in the crypto industry in 2021. Many believing certain coins could outstrip initial Cryptocurrencies Price Predictions.
In 2017, the Bull Run had individual investors moving the market, but in the current scenario, institutional investors are behind the upward move, by which crypto prices have skyrocketed in recent months.
Bitcoin’s Price Aided by PayPal’s Announcement
Bitcoin reached above record high at $42,000 on January 8 and also touched $29,000 in the same month. Bitcoin is adopted by major firms like Fidelity, PayPal, and other institutional investors, moving Bitcoin prices to new highs.
The world’s oldest cryptocurrency, Bitcoin, had a large insurance firm MassMutual, purchase $100 million of Bitcoin towards the end of 2020. It has many high-net-worth individuals using it.
Scott Minerd, Chief Investment Officer of Guggenheim Partners predicts that Bitcoin may hit $600,000. Institution support will lift the long-term currency prices, he says.
Ethereum 2.0 to Boost Value
ETH prices reached $1,485 in January 2021, slightly lower than the all-time high reached in 2017.
Ethereum will continue to remain in the headlines, especially as it has upgraded its usage. The second-largest cryptocurrency may also move to levels of $1,600 or $2,000 as it is in the consolidation phase, predict experts. The blistering rally seen in Bitcoin brings momentum in other cryptocurrencies too.
Ether received a major upgrade to Ethereum 20.0, intending to draw more investors, as it helps to provide secure and faster movement. Its network supports apps by which it can replicate traditional financial usage.
Ripple Slides Under SEC’s Lawsuit
Ripple has struggled through 2020 with various lawsuits filed against it by the US Securities and Exchange Commission. The sale of XRP tokens has come under the regulatory scanner, and Ripple’s XRP prices took a dive downwards. Various exchanges had delisted XRP after the lawsuit. 2021 may not be very favourable for Ripple, especially as it faces a pretrial hearing in February.
On Friday, Ripple filed its arguments against the SEC claims. The legal future of Ripple is uncertain, and many swings are expected in the near future. Ripple was trading below 0.4 up to October 2020 but surged sharply with a short squeeze to move to $0.60 in November 2020. High volatility was seen in January and February 2021. Experts warn investors of big swings in XRP’s Ripple.
Litecoin’s Quick Transaction Speed
Litecoin was created by Charles Lee, to help process transactions faster than Bitcoin. The quick transaction speed has made it useful for customers. It has chances of becoming a widespread currency as Litecoin circulation is limited to just 85 million. Considered as the silver of the cryptocurrency market, Litecoin has a lower price and greater transfer of value. It started 2021 above $120 and has moved up to $170 in January. However, experts predict a deep slide in Litecoin towards $80 in 2022 and $40 in 2023.
Bitcoin Cash Competes with Bitcoin
A mixed picture is painted by experts, on Bitcoin Cash price. The altcoin BCH faces high competition from big brother Bitcoin, as institutions remain focused on BTC and Ethereum. BCH allows people to send money across nations inexpensively, keeping transaction costs lower. PayPal has provided for shoppers and consumers to use BTC as a crypto asset, which may boost its value further.
Polkadot See Big Spike
Polkadot (DOT) launched in May 2020 traded flat between May and December 2020. But in late December 2020 and January 2021, DOT saw a big spike reaching an all-time high of $20. Its financial resource has raised millions of investors, making it one of the well-funded Blockchain. Once inter-coin transactions between DOT and ETH are made, their prices may further increase.
DeFi, NFT, and Stablecoins Boom
The growth of DeFi has increased recently, especially as it helps to address challenges like accurate price data. The short-squeeze in GameStop (GME) and AMC Entertainment (AMC) has turned individual investors towards decentralized finance and cryptos.
The non-fungible tokens have been in great demand in 2020. NFT’s are offered to interested gamers with footballers representing rare assets.
Stablecoins have surged in 2020 by a massive 500%, becoming the most sought after payment network in the world. The stablecoins are dollar-backed, and it is expected to surpass $150 billion.
Regulations in the Crypto Market
The crypto sector requires standardized regulatory measures. Unless digital assets are legitimized with more clarity, the crypto market cannot run smoothly.
The anonymity offered by cryptocurrencies is keeping investors, government, and regulators wary about the crypto in the global markets. The extremely volatile asset has to be regulated to keep users safe, say authorities.