A new year is upon us. 2020 is finally coming to a long-awaited end, along with the craziness that came with it. This year bitcoin rose to new heights, and the currency appears to have garnered a newfound reputation as a store of value. Many see it as a hedge tool that can keep one’s wealth safe during times of economic strife.
Will 2021 Be Any Different for Bitcoin?
The big question now is, “Where do we go from here?” Where will bitcoin be lead in 2021? Could the future hold promising items for the world of crypto, or will we see massive corrections like we did in 2018 following the bull year of 2017?
There are so many things to think about. At first glance, it doesn’t look like there is any reason as to why bitcoin would end its present patterns, all of which appear to be bullish. The currency has been on a serious roll over the past eight months. Technically, one could state that the currency has been bullish since the year started.
It initially began 2020 in the $7,000 range. By the following month in February, the currency had shot up to about $10,000, thereby adding $3,000 to its price. From there, the coronavirus took a nasty toll on bitcoin as well as the rest of the world’s financial products, but it wasn’t long before the currency rose back to the top of the financial ladder, eventually recovering to $9,000 in May.
What would have likely affected BTC for a long time about five years ago proved to be a small dent in the road. Many businesses have not recovered from the coronavirus pandemic, but bitcoin is well on its way to being an “everyman” currency. The asset has been jumping ever since, ultimately spiking to about $27,000 last week.
Given the currency’s good fortune well into the final weeks of the year, one would automatically assume that things will continue in this respect, but to be fair, it would be wrong to just believe that all will remain honky dory throughout 2021. We can hope for this, but as we’ve come to know with bitcoin, things can be rather unpredictable.
We Should Be Prepared for Anything
Many people didn’t expect 2018 to go the way it did. What followed a year of great stamina and strength for bitcoin was a year of dismal losses. One that ultimately saw BTC hit a new low and shed 70 percent from its value.
However, this was a time when bitcoin was predominantly supported by retailers, which are typically not as strong as institutional players. This year, institutions such as MicroStrategy and Square have shown newfound love and respect for bitcoin, which could help to keep it afloat throughout the new year. Granted this attitude continues, perhaps bitcoin finally has a chance of joining the same ranks as fiat currencies.