A look back at Bitcoin’s 5 Best Bullish Stories in 2021

In terms of price developments, cryptocurrencies like Bitcoin and ETH are not expected to end up on a bad note in 2021, which belies predictions of a peak recession scenario towards the end of the year. The six-digit Bitcoin price in December was the expectation of many analysts, investors and market watchers, who expected the crypto king to repeat the previous four-year cycle.

BTC 1 Day Price Chart | Source: Tradingview

While Bitcoin is currently far from this desirable milestone, exponential growth markets require a longer-term view. When you zoom out from the chart, you can see that Bitcoin continues to make higher highs and lows on the annual chart. In addition, both private and institutional investors are increasingly buying cryptocurrencies and viewing them as a legitimate asset class.

Dan was a hero tweet:

Bitcoin year low: 2012: $ 4, 2013: $ 65, 2014: $ 200, 2015: $ 185, 2016: $ 365, 2017: $ 780, 2018: $ 3,200, 2019: $ 3,350, 2020: $ 3,800, 2021: $ 27,734.

HODLer Bitcoin is the platform. They are the revolutionaries who received and developed Bitcoin. Do you still want to bet against them? “.

Despite the recent declining price movements, 2021 is an important year for cryptocurrencies. Of all the positive developments over the past 12 months, the following 5 stories in particular have drawn the most attention and optimism from a business and adoption perspective.

Tesla is adding Bitcoin to its balance sheet

Elon Musk’s Tesla Motors sent shock waves through the crypto community in February when it was revealed that it had allocated a significant portion of its balance sheet to Bitcoin. According to the final Form 10-K filing for fiscal 2020, the company has allocated BTC $ 1.5 billion, which at that point represented approximately 7.7% of the company’s total cash.

In addition to buying Bitcoin, the company also accepts BTC payments for its products. Not only did Tesla’s decision skyrocket the price of Bitcoin, it also signaled to other companies that the cryptocurrency is a strategic reserve.

After Musk captured the hearts of crypto loyalists, Musk later revealed that the company had suspended BTC payments due to concerns about the cryptocurrency’s energy consumption. He also said Tesla sold about 10% of its BTC holdings, but only to demonstrate its liquidity.

While the crypto community certainly thought this was negative at the time, the billionaire also indicated that his company was getting closer to accepting Bitcoin payments. grandfather said never sold any of its BTC.

El Salvador declares Bitcoin legal money

The tiny Central American country of El Salvador made crypto history in June by becoming the first country to declare Bitcoin legal tender.

Despite fierce opposition from the World Bank and the International Monetary Fund, El Salvador believes its Bitcoin Gambit can help transform the economy by streamlining remittances, promoting the digitization of finances, and offering users new opportunities for transactions and savings.

El Salvador has launched its own government-backed Bitcoin wallet called Chivo and has installed hundreds of crypto ATMs across the country to help locals get started trading BTC.

Since the implementation of the Bitcoin Law, El Salvador has been keen to buy dips on all major BTC price corrections. After the last purchase on December 21, the country now holds 1,220 BTC on its books valued at around $ 60 million at today’s prices.

El Salvador’s decision to accept Bitcoin may be highly controversial in an area grappling with hyperinflation, financial pressures, and economic uncertainty. Although several other Latin American countries are reportedly considering accepting Bitcoin, no other governments have yet followed El Salvador’s lead.

Cryptocurrencies are becoming a trillion dollar asset class

While cryptocurrencies are known for their notorious volatility, a longer-term view shows that market valuations are steadily increasing. In 2021, market capitalization has already set many important milestones, including a value of $ 1 trillion for the first time in early January. According to Coingecko data, it took the market about 4 months to double to $ 2 trillion before topping $ 3 trillion in early November.

It took about 4 months for the crypto market to double to $ 2 trillion before surpassing $ 3 trillion in early November.

Source: CoinGecko

Cryptocurrencies are emerging as a trillion dollar asset class, signaling that more institutional investors are planning to enter the market. CoinShares data shows that demand for their products has also skyrocketed among existing crypto-focused investment managers, with net worth flowing into digital asset products. Numbers of over $ 9.3 billion for 2021.

Other financial institutions and corporations are also trading cryptocurrencies at higher prices, with Europe becoming the largest crypto economy and Asia also seeing remarkable growth, blockchain analytics firm Chainalysis reported.

Bitcoin ETF approved

The 2017 bull market culminated with the introduction of Bitcoin futures by the CBOE and CME, which opened up new opportunities for institutional investors to get into digital assets. Four years later, investors can now buy and hold Bitcoin through an Exchange Traded Fund (ETF).

In the first quarter, two Purpose Bitcoin ETFs and Evolve Bitcoin ETFs were launched in Canada, which enable direct exposure to digital assets.

The launch was a resounding success as the Purpose Bitcoin fund amassed over $ 1.3 billion in assets in less than 2 months. At the beginning of last December it was Fidelity Canada notification launched a spot bitcoin ETF in Canada that is expected to attract more investors to the digital asset market.

Source: Eric Balchunas

Regulators in the United States are much less advanced in their handling of digital assets. While the Securities and Exchange Commission refused to give the green light to a spot Bitcoin ETF in 2021, regulators have approved two futures-linked Bitcoin products that many in the industry consider a major milestone.

The ProShares Bitcoin Strategy ETF became the first US-approved BTC fund in October, and the Valkyrie Bitcoin Strategy ETF was launched shortly afterwards. In November, VanEck launched its own Bitcoin strategy ETF in the US.

Venture capital wave

Perhaps the most optimistic indicator for cryptocurrencies in 2021 is the wave of venture capital that is flooding the market. Dozens of crypto unicorns have taken the throne this year as startup valuations soar above $ 1 billion.

Amber Group, Bitso, Blockchain.com Blockstream, BlockFi, CoinList, CoinSwitch Kuber, ConsenSys, Figure Technologies, Fireblocks, OpenSea, 2TM and others make this list thanks to very successful private funding rounds.

According to data from PitchDeck, more than $ 17 billion in venture capital-funded startups focused on crypto and blockchain in the first 10 months of 2021, more than triple the amount in 2020.

The emergence of venture capital means that smart money has identified crypto and blockchain as major growth themes. Of course, if you’re Jack Dorsey, that’s not necessarily a good thing:

https://twitter.com/jack/status/1473380683896737813?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
However, venture capital investments in blockchain startups, no matter where we are in the market cycle, is a sign that the industry is maturing. It’s also a gentle reminder to all survivors of the ICO frenzy that their initial idea about investing in crypto is likely correct.

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