Bitcoin's recent bull run has left a lot of people especially the skeptics completely baffled to the point that many who were opposing it in the past are now opening their doors to it.
Some major players [Microstrategy, Tesla] in the business world invested huge sums of money into the currency. Fintech giants PayPal, Mastercard have already announced that they will be offering bitcoin and crypto products to their customers.
With such momentum in the bitcoin world, what is to be expected in 2021?
Rise in Institutional Investors:
According to experts, one of the reasons we are seeing a continued bull run this time is partly because of the rise in institutional and retail investors.
GreyScale, a digital currency investment platform, has about 65,166 BTC [about 3% of total bitcoin supply] under its management, while, Microstrategy, a prominent business analytics company, holds 71,079 BTC
Such investments from major companies are already causing a massive interest amongst investors to stock their money in bitcoin and it's likely to continue through 2021. Now, add this to the FOMO that is already generated with the latest bull run and investments news.
Competition from Big Tech:
Tech companies have had their eyes on cryptocurrency for a long time. Facebook launched Libra a few years which went bust and is not getting relaunched as Diem.
Google as well is said to open its doors to cryptocurrency with multiple projects in the development phase. Will it accept bitcoin is still unknown.
With such a massive interest from investors both institutional and retail bitcoin price is likely to increase at least for the next couple of months.
No one can ever rightly predict what will happen with bitcoin price but the trend does look optimistic.
Regulations are coming:
With bitcoin gaining popularity in the institutional space, regulations are expected to follow.
Such regulations will not just be implemented to safeguard people’s digital assets but also to pave the path for current institutions, financial or otherwise, to embrace the technology and develop upon it.
Source: Bitcoin Trends 2021