In the wake of mounting chaos in the global banking sector, Bitcoin has seen unprecedented demand, spiking over the all-time-high $30,000 mark amid massive investor enthusiasm. Ethereum (ETH) and many other altcoins have also enjoyed profits, leading to strong overall market performance. This historic level of upward momentum is the latest addition to a wealthy 2020 for Bitcoin, and a sign of a maturing cryptocurrency sector.
1. Bitcoin Passes $30,000 Mark in Historic Run
The Year of Breakthrough
The start of 2021 has already seen a remarkable surge in cryptocurrency prices, with Bitcoin making a major milestone – passing the $30,000 mark. It reached this on Jan 2nd, the first trading day of the trading year, following several weeks of incremental growth. This marks the passing of a major psychological threshold for Bitcoin prices, and shows that the overall cryptocurrency markets remain bullish.
The price propelled even further adding over 20% in gains over the weekend. The market rally pushed the cryptocurrency to a new all-time high at more than $32,000, surpassing its previous high in 2017 of near $20,000. Even with the prevailing COVID circumstances, these record highs signify a huge step forward in digital currencies, with Bitcoin likely to reach new highs before the year is out.
The milestone is being attributed to factors such as increased mainstream acceptance of digital currencies, institutional investors buying in, and retail investors buying up Bitcoin. Economic volatility, particularly US-China tensions, has further added to the demand. This upward climb has shown that Bitcoin is still on the right track, leaving the world to ponder what further heights might be achieved in 2021.
2. Banking Sector Disruption Fuels Crypto Surge
The banking sector, overly reliant on antiquated systems, is seeing increasing disruption from a variety of different sources. Many are turning to cryptocurrency as a way to not only benefit from the same transacting benefits but also to add an extra layer of security.
- Decentralization: Crypto is decentralized, meaning it is not owned by any central or bank authority, allowing users to take control of their funds with no middleman.
- Security: Cryptocurrencies use blockchain technology and cryptography to securely transact digital information, giving it an additional layer over traditional banking.
- Ease of Access: Crypto transactions are easy to access and understand which allows for more efficient trading and transfer of funds.
The banking sector is lagging behind in terms of innovation and is therefore not able to keep up with the rising demand for more secure, open-access digital transactions. This is what is creating the perfect storm for crypto to surge in prominence, with an ever-growing number of people turning to crypto as an alternative financial mechanism.
3. Ethereum Joins Most Altcoins in Profits
Ethereum is currently one of the most profitable altcoins in the market. Over the past month, Ethereum has seen a steady increase in its market cap, resulting in over 20% gains for investors. Ethereum has benefited from a growing market in DeFi projects, which has pushed up demand for ETH.
The strong demand for ETH has enabled the token to outperform many of the other altcoins in the market. Ethereum is now the third most valuable cryptocurrency in the world, behind Bitcoin and XRP. This has made it an attractive option for investors looking to diversify their crypto portfolios.
- Ethereum has consistently made gains over the past month, resulting in a 20%+ increase in value.
- DeFi projects have been pushing up demand for Ethereum and the token is now the 3rd most valuable cryptocurrency in the world.
- Ethereum is a great option for investors who are looking to diversify their crypto portfolios.
4. Investors Look Ahead to 2021 Cryptocurrency Outlook
Despite the uncertainties of 2020, the year providedcryptocurrency investors with a smorgasbord of opportunities. Despite the fluctuations, Bitcoin was particularly resilient and reached record-highs in late 2020. This created much needed optimism in the market and helped carry investor sentiment into 2021.
At the start of 2021, investors are continuing to invest in cryptocurrencies. Bitcoin and Ethereum remain the top two picks, but other altcoins like Dogecoin, Chainlink and Polkadot are also gaining popularity. Investors are also looking for value-oriented investments, as well as those with the potential to yield higher returns. As always, investors should do their own research and assess the risks prior to investing in cryptocurrencies.
- Bitcoin: The premier cryptocurrency is seeing increasing investor confidence.
- Ethereum: As the leading smart-contract blockchain, investors will continue to flock to ETH.
- Altcoins: Other cryptocurrencies will be increasingly considered by investors.
- Research: Investors should be sure to research the risks prior to investing.
The 2021 Bull Run looks to be as promising as ever, with Bitcoin once again leading the pack. We are looking forward to seeing what the banking sector will do to counteract the ascension of Bitcoin and other digital currencies. As the traditional banking system continues to experience chaos, the crypto market will undoubtedly continue to grow and remain a strong investment option for the foreseeable future.