Cryptocurrencies are going through a special stage, as they already enjoy the attention of large investors. They began 2021 with confidence, with a significant increase.
Crypto Assets That Deserve Your Attention
The bullish growth of cryptocurrencies continues to gain momentum, attracting new institutional investors, particularly when it comes to Bitcoin
Between the rumors that Bitcoin could reach a price of $ 100,000 this year, and others who believe that 2021 will be the season of altcoins, we decided to choose the three fastest-growing cryptocurrencies that will grow rapidly this year.
Bitcoin is likely to hit the $ 100,000 mark if history repeats itself with a market cap-to-thermocap ratio.
This indicator is described as the market capitalization divided by Thermocap and Glassnode. In cases where Bitcoin changes hands, compared to the total cost of miners for security, the metric fully shows this. It should also be emphasized that the coefficient result is adjusted to account for the increase in the circulating supply over time.
In particular, the first cryptocurrency has grown by about 135% in less than 30 years. Prominent analyst Raphael Schulze mentioned that during the previous bull run, BTC was worth $ 8,500, while its market cap to the thermocap was still at the prevailing level.
This rapid rally of the flagship cryptocurrency also shows how dynamic the cryptocurrency market is and the many opportunities for rapid developments overnight. Bitcoin could indeed soar to highs above $ 100,000 if it rose by the same 135%.
Santiment’s NVT coin circulation model also reinforces this optimistic narrative, as this indicator is associated with a change in the growth of the market capitalization of tokens exchanged on the network. Aside from the semi-bullish five-month outlook, Bitcoin’s NVT model is noticeably upbeat at the moment.
- What can prevent it?
What will happen if Bitcoin fails to break the $ 50,000 resistance, and this is a sudden increase in selling pressure, because eventually the bulls will be exhausted. This royal cryptocurrency will not be able to move any further thanks to the support of $ 48,000. When retested, there is a very high probability of weakening, which can negate progress up to $ 44,000.
India to Maintain Ban on Cryptocurrency Investment
The proposed total ban on cryptocurrency in India will go ahead as planned. India is extremely adamant in its decision to allow its citizens to engage in cryptocurrency activities. However, the government is willing to grant investors in India a transition period of three to six months. According to Bloomberg Quint, there will indeed be some exceptions to the Indian bill:
“The bill also aims to ban all private cryptocurrencies in India; however, it allows for certain exceptions to promote the underlying cryptocurrency technology and its use.”
The Indian parliament is ready to impose a ban and prohibit any interaction with cryptocurrencies. Transactions with foreign exchanges will also be banned.
India is one of the most populous countries in the world, where there are quite a lot of people who are engaged in cryptocurrency trading and other business. Bitcoin may suffer from strong pressure from sellers, and everything will depend on how soon the full ban will take effect. Although there is a transition period, this will provide people with limited time to sell their digital assets, which will negatively affect Bitcoin and prevent forecasting up to $ 100,000.
Reasons for the growth of BTC
The First Bitcoin ETF Approved by the Canadian Securities Regulator
By signing a proposal under the multi-party instrument passport system in various Canadian jurisdictions, the Ontario Securities Commission (OSC) has successfully approved North America’s first Bitcoin exchange-traded fund (ETF). The duplication of the BTC price action will be performed without taking into account the fund’s fees and some related costs, as indicated in the newsletter provided by Purpose Investment. In addition, this Bitcoin ETF will not be used to speculate about short-term price changes.
In the United States, there is a chance to consider a similar product, as Canada has successfully approved the first BTC-ETF in North America. In 2019 and in the early days of 2020, the Securities and Exchange Commission (SEC) did reject various proposals. Meanwhile, SEC Commissioner Hester Pierce believes that the market is ready to use Bitcoin ETFs.
For most of January 2021, Bitcoin ranged from $ 30,000 to $ 40,000. In the end, the first cryptocurrency achieved a small result, exceeding $ 43,000.
What’s more, we saw a big spike on February 14, 2021, when BTC hit a new all-time high following the big announcement that Tesla had acquired about $1.5 billion worth of BTC, reaching $ 49,487.
Bitcoin’s bullish rise is also likely to intensify as Tesla’s interest in BTC and other heavyweights backing it will fuel corporate demand.
In terms of corporate demand, numerous public companies have adopted Bitcoin as a financial instrument in recent months, namely MicroStrategy. However, Tesla’s ability to convert some of its cash reserves into BTC is a major change, as it is likely to push more of the world’s leading industry leaders to participate.
There are various BTC price forecasts for 2021. Some observers suggest that by the end of February, the price of Bitcoin could still reach $ 50,000, and according to Galaxy Digital CEO Michael Novogratz, the value of Bitcoin could double, and reach $ 100,000 by the end of the year.
Commenting on the latest revelation of Tesla, Novogratz said that we will just see how all American corporations will start doing the same thing – buying BTC.
“You see a herd here, and it’s coming,” Novogratz said.
- Ethereum (ETH)
As demand from institutional investors grows, the price of Ethereum hovers near its historical peak. While the decentralized finance (DeFi) industry is starting to see significant inflows, ETH prices are also rising.
With it currently trading at $ 1,771, just below the all-time high of $ 1,871, the premium altcoin is already causing bullish gains, indicating that it could reach $ 2,000 earlier than expected in 2021.
Over the past months, ETH has been on an upward trajectory, mainly due to the current period of over-enthusiasm. Under this scheme, the market capitalization of the currency was increased to more than $ 200 billion. Experts predict that many institutions will buy it to expand their investment in BTC, as the second largest cryptocurrency.
Ethereum has been at the forefront of DeFi’s growth since the launch of the Beacon Chain. Andrew Peel, head of digital asset markets at Morgan Stanley, predicts that demand for DeFi will continue to grow until the end of 2021. As with Bitcoin, ETH is on an upward trajectory in the face of market volatility, and has so far held well above the $ 1,000 mark.
- Cardano (ADA)
Cardano, on the other hand, has recently experienced a sharp price spike, and the optimistic forecasts of analysts suggest that the price will be even higher. In 2021, Cardano was one of the most efficient coins with a 300% increase. Between March and July 2020, the market value of the ADA increased by 600 percent. Then, as the year came to an end, the coin grew by another 130%.
Cardano is founded by Charles Hoskinson, the co-founder of Ethereum, and it is considered “Japan’s Ethereum” due to the large base of supporters coming from Japan.
According to most forecasts, the ADA may continue to grow in 2021. Within a year, the ADA may recognize its highest price, and by the end of the year, it may reach a new all-time high of $10. But there is also a more conservative approach, according to which Cardano will fall to $ 2.
For many reasons, Cardano’s price forecast for 2021 is optimistic.
First of many, the Cardano Shelley update changed the rules of the game for ADA, as it allowed for 100% decentralisation of the Cardano network. Moreover, crypto analysts believe that Cardano can oppose Ethereum as perhaps the most powerful decentralized system in the world.
The price of the ADA token jumped more than 10 percent against the US dollar when the Cardano team presented Shelley’s revised plan.
The 2020 crypto bull run was very different from the 2017 run. While individual investors largely drove the previous boom, the 2020 surge was driven by growing institutional activity in digital currencies.
This gives us a little bit of hope and optimism that the public acceptance they’ve been seeking for so long will actually come at the expense of cryptocurrencies, which in turn could accelerate global adoption.