Whether you are curious or want to invest, cryptocurrency remains very attractive, but the markets are extremely fluctuating, so it is very difficult to accurately predict the prices of days, weeks or months. future.
However, it is still possible to make some predictions based on recent variations in currencies like Bitcoin or Ether.
At the beginning of January 2021, Bitcoin reached record levels: more than $ 41,000!
To understand, we have identified 3 factors that are driving the current craze for cryptocurrencies:
These Cryptocurrencies are increasingly taken seriously by established financial service providers who until now despised them, but now include them in their service offerings. This is the case of Paypal which announced in October 2020 the plan to give its 300 million users the possibility to sell, buy and keep crypto currencies in their Paypal digital wallet. The impact of this proposal is major: it simplifies the process of accessing cryptocurrencies and therefore makes them accessible to a greater number of people, without having to go through dedicated trading platforms.
Asset management companies are already investing significant large sums in cryptocurrencies. Large investment firms like SkyBridge, Fidelity or CityBank have already embarked on this type of investment for their clients.
Because of the pandemic, developed economies are providing financial stimulus to protect jobs and businesses. Bitcoin has become a protection for institutional investors against the loss of value of traditional currencies.
Cryptocurrencies Trends for 2021:
Institutional cryptocurrency brokers will grow. Organizations are likely to look to facilitators to access the crypto markets and others will choose asset managers.
The existing regulatory framework may become more stringent. As the variety of cryptocurrency services is increasingly vast, we can expect increased regulation for all players in the sector, especially to fight against money laundering or simply protect and regulate flows. monetary.
Cryptocurrencies are increasingly used for everyday purchases. They went from the virtual world to the real in a few years. Beyond the announcement by Paypal, millions of people around the world are already using Visa payment cards linked to a cryptocurrency wallet on smartphones to pay for their daily purchases.
We can therefore predict with all this information, that cryptocurrencies will continue to generate excitement in financial markets and individuals. They will be even more of a valuable addition to the global financial infrastructure.