The recent historical moment that the cryptocurrency market has left for posterity has put on the lips of all the naysayers and skeptics who in March laughed at the stratospheric predictions for the creation of Satoshi Nakamoto. In memory of what happened in 2017, bitcoin has staged a rally to exceed $ 20,000 and leave a mark above $ 23,000. This event has raised great hopes for the potential of the digital currency in the coming months.
2020 will be remembered as the great year of bitcoin, when it normalized as an asset and the large investors, the strong hands of Wall Street, surrendered to the digital currency to consider it a safe haven in their portfolios. Also, when it began to react to macro events, the result of the Covid-19 crisis, just like other markets. In 2021 a consolidation of all these trends is expected that will not be temporary and, in addition, the price objective is at $ 50,000.
Without a doubt, the appetite of large institutional investors has been one of the spurs of the rally. Investing in bitcoin by companies like MicroStrategy, Square, more recently MassMutual, which bought $ 100 million worth of bitcoins this December, or from the British manager Ruffer, which this week announced that it allocates 2.5% of its portfolio to the Nakamoto currency, has been a reaction to low interest rates, stimulus from central banks and a struggling dollar. All of these themes will continue to dominate the markets throughout the next year and 'crypto' prices are expected to continue rising fueled by institutional money.
But it's not just the strong hands of Wall Street and other institutions that have surrendered to the crypto asset. "2020 will remain in memory as the year the 'crypto' market went 'mainstream' ", says Alejandro Zala, Bitpanda's country manager in Spain. Without going any further, this week Manzana has announced that it will allow the purchase of cryptocurrencies through Apple Pay, one of the largest mobile payment providers in the world. In Spain, it has been BBVA the first large bank to offer the service of buying, selling and custody of digital assets to its clients. All this after PayPal launched in October a service that allowed its users to make payments using their cryptocurrencies
"There is a clear change in mentality: the new generations see in bitcoin the gold of their generation”, Assures Zala. And, although experts indicate that it still has a way to go to act as a hedge against inflation as the precious metal does, the Equality between digital assets and gold is “another of the great issues that has gained momentum in 2020”Says Eric Turner, research director at market data provider Messari. "This is just the beginning of this cycle, which is going to be dominated by established institutional investors adding allocations to bitcoin. The real turning point is whether pensions and sovereign wealth funds start to enter the game", Has expressed. It remains to be seen if this event, which would ratify its role as the new digital gold, will be seen in the coming year.
THE NEXT MILESTONE, 50,000 DOLLARS?
Although this point is still up in the air, it is clear that, given its nature of a finite good -like the yellow metal-, "cryptos" in general, and bitcoin in particular, are increasingly viewed as a store of value”According to Robert Catalanello, president and CEO of the cryptocurrency exchange B2C2. However, the fact that it has been the macro, with events such as Brexit or the economic consequences of the pandemic, the great engine of the wave of purchases in bitcoin makes one doubt that it will have more travel when these issues are resolved and the world population is vaccinated.
In this sense, experts do not exclude a sharp price correction in 2021 like the one we saw in 2018, after the high of the previous year. The value of bitcoin has nearly tripled this year, with gains above 180%, "making it one of the best-performing assets of the year," says Nigel Green, founder and CEO of deVere. But since the cryptocurrency fell to $ 3,600 in March, it has not stopped rising, indicating that the price is overbought and that a rectification may be around the corner.
In fact, ‘Bloomberg’ analysts warn that a movement of risk aversion like the one unleashed in the first quarter of 2020 "It could bring bitcoin back to $ 10,000 in 2021". However, they believe that investors "will put aside the risks inherent in this market and accept volatility as the lesser evil of investing in bitcoin next year." These experts have located the $ 50,000 goal of the rises over the next 12 months, implying a $ 1 trillion market capitalization for Nakamoto's creation.
Other firms expect the maximum price to reach $ 100,000 for each bitcoin based on the increase in demand in the 'crypto' queen, the adoption and interest of the general public with more banks and institutions jumping on the bandwagon of crypto assets and the decrease in supply When you reach your goal of 21 million in circulation. In the medium term, in 2021, several analysis houses agree with 'Bloomberg' that $ 50,000 could be within reach, while in the short term, corrections through, bitcoin will rise to 24,000 – 28,000 dollars, for look at $ 30,000 as the next round figure.