4 Cryptocurrency Forecasts for This Year

Market experts and analysts point towards volatility in crypto prices this year, however also mentioning an increase in the trend of institutional backing for bitcoin.

Of the several trends which might be observed in the virtual currency market, increased regulation of crypto, volatility and greater amount of institutional adoption and support will be the major ones, strategists and market experts think.

The year 2020 was not only a test for the general public in the world and its economy, but also for the crypto market in particular, as the BTC prices fell down to almost $5,000 during March last year and climbed up to a high of $28 000. The similar trend of volatility can be seen even this year as well, given the skyrocketing prices up to $40,000 at the beginning of this year and then price varying constantly.

It should be noted, however, that although there was an excessive amount of volatility in crypto during the last year, there was also an increased number of investors seen in the market which belong to the big institutions. Some of the examples of institutional investors are MicroStrategy, Mode, Square and several other companies which transferred their cash assets to digital crypto assets, in order to bypass the inflation and other disadvantages posed by the fiat currency. Visit Official eKrona Cryptocurrency, one of the leading automated crypto trading website, if you want to make guaranteed gains and profits via automated trading.

It can be seen in the world right now that a vast number of companies, retail investors, corporations and hedge funds, all are aiming to add bitcoin to their portfolios, in order to diversify it. Although the amount of these investors could be comparatively low when compared with the traditional markets, it should be known that this number will only rise in the future and with the unfolding implications of the global pandemic, coronavirus.

Here are 4 of our predictions regarding the crypto and the crypto market in general for this year:

1.    There Will Be an Increase in Mainstream Adoption During This Year

There has been a 300% increase in the value of bitcoin in the past one year. However, even though the prices have increased, there is still an ongoing increase in its mainstream adoption by several investors and traders, and this growth is expected to continue this year as well. It has been reported that an increased number of institutions are entering the crypto market, while the ones already owning crypto are increasing the size of their assets. The thriving crypto market, increased attention of the media and the convenient access to virtual currency has also caused the retail market to flourish.

There has been a growth in the number of investors and traders entering the market after every bullish trend in crypto prices. Due to this, the user base of the digital currencies increases and also connects the general masses to the cryptocurrency in order for them to increase the widespread adoption of virtual currencies for payment and investment purposes.

2.    Recent U.S Government Uncertain About Crypto Market

The newly elected President of the United States, Joe Biden, appointed Janet Yellen as his treasury secretary. And it is claimed that she does not support or is not really fond of BTC or any other crypto. Considering the levels of money coming into crypto from the institutions, and also the legislation which has permitted the banks to hold crypto on behalf of their customers during the last year, there are great chances of a major pushback from Wall Street which might cause any bearish positions difficult to uphold.

On the contrary, there are also many senators in the United States which do not oppose the idea of crypto, but rather support it. It is essential for the US to be accepting and friendly towards crypto, given the trend will likely be followed by the whole world.

3.    There Will Be an Increase in the Regulation on Crypto

There has been a significant increase in crypto values and maturity, therefore regulators around the world have been interested and keen on increasing their efforts towards accepting BTC and other crypto but also increasing regulation upon them. For example, a draft was published last year in the US, which declared crypto as a financial product and there has been an increased regulation proposed by the South African Reserve Bank in South Africa. The fact that crypto is now considered as a financial asset class product, it also implies that the institutions or persons who provide intermediary services for virtual currencies should be properly and legitimately authorized as a financial services provider.

4.    Increased Volatility in Crypto Prices

Last year greatly caused economic uncertainty due to several reasons such as the coronavirus. However, in spite of these testing times, BTC performed quite well, even better than other financial tools such as stocks, shares or gold. The world witnessed days of exponential growth in crypto prices and levels of all-time highs. However, the trends were not just positive, but also were affected by great degrees of volatility. Even this year, there has been a high volatility in BTC, as we witnessed it hitting an all-time high of $42,000 shortly falling back to lower levels. Consequently, the price forecasts are spread all around the internet.

A Final Word

Although there has been a great increase in adoption of crypto, crypto such as BTC and several others are still relatively newer in the world, and therefore are expected to show volatility. In the long-term, however, the crypto prices are expected to grow higher, despite temporary short term declines.