2021 is upon us! For many of us, it took several years of patience, but Bitcoin is finally coming around. According to prior halvings, this year will finally boost Bitcoin in the direction of new highs. So what are some of the things to keep in mind as we enter into a new, parabolic market?
In the next few chapters, we will discuss some of the most important trends to keep in mind. So make sure you read the whole article and use this information to benefit financially.
Trend #1 – Institutions start buying Bitcoin
During the latest bear market, crypto giants improved the ability for both small and large players to access Bitcoin and store it safely – you can click here to learn about one of the crypto storage options out there.
Then 2020 came around and the economic instability was the final catalyst for public companies to start “jumping on the BTC train”. In a short period of time, we saw companies like MicroStrategy, Square, and others, convert (part of) their balance sheet into BTC and urging others to do the same. According to MicroStrategy’s founder, Michael Saylor, very soon everyone will need a Bitcoin strategy.
Trend #2 – Crypto options will increase in popularity
With more retail interest coming from experienced investors, we see exchanges trying to accommodate their interests by building new financial products often seen in other investment markets. Major players like Binance and FTX offer different types of derivatives products to help users increase their Bitcoin position through risky trading.
Other cryptocurrency exchanges like Kraken and eToro have also proved to be popular over the past few years. Accordingly, deciding which cryptocurrency platforms are best for your needs can be overwhelming at first. However, by reading useful guides such as this Kraken or eToro comparison on the Kryptoszene website, you can start to compile a shortlist. Above all, the more research you can do, the better your chances of choosing a cryptocurrency trading platform that will help your investments to grow.
Among these products, we expect to see a massive surge in popularity for Bitcoin options, among others.
Trend #3 – DeFi continues to grow
In the summer of 2020 we saw massive growth in the cryptocurrency markets, with a specific focus on Decentralized Finance and all projects that support its growth. In a short period of time, we saw a transition of more than $14 Billion dollars flowing into DeFi markets, mainly smart contracts of DEXs. We expect this trend to continue within 2021, and projects like Ethereum and Chainlink to experience massive growth through it.
Trend #4 – Growth in NFT markets
Digital art is becoming increasingly popular since earlier in 2020. What was first seen as just “crypto-collectibles” and “crypto kitties” is now a full-blown digital art and virtual real estate market. We expect a massive influx of creators into the DeFi space within 2021.