In 2021, the crypto asset market is off to a good start, with Bitcoin breaking through $40,000 and Ethereum breaking through $1,200. After experiencing the abundance and magic of 2020, we know that now you are either in the hesitation and regret of to da moon, or in the optimism and longing of to da moon, some “outsiders” are eager to try and want to jump into this market. . In any case, there is still a big opportunity in 2021 (at the same time be sure to “drive” carefully).
The writer of this article is Ann Hsu, Chief Strategist of Qianfeng Capital.
After the third Bitcoin halving, the supply and demand pattern has undergone a qualitative change. The declining exchange balance is superimposed on the continuous influx of institutional funds, and Bitcoin will usher in a price rebalance. I estimated the high point of Bitcoin in this bull market to be between 390,000 and 410,000 US dollars, and the top will come in October 2021. Ethereum will also reach new highs, estimated to be before 2900~3300 US dollars. The top time will be slightly later than Bitcoin, in November 2021.
In addition to Bitcoin and Ethereum, I suggest you pay attention to LTC, which may be the most promising digital asset in 2021. As for XRP, it may not be able to keep its top 10 position in market capitalization. If USDC among stablecoins enters the top 10 in total market value, I am not surprised at all.
Where did the black swan affecting the market happen? I think it will be hacking of stable coins, hardware wallets, and exchange liquidity crisis. I think it is very possible that due to competition from overseas, China’s Bitcoin computing power will fall below 60% of the world.
In 2021, I judge that encrypted digital assets will achieve breakthroughs in the following directions:
1. It may cause some small and medium-sized countries to adopt Bitcoin as foreign exchange reserves.
2. More European and American listed companies choose Bitcoin as a reserve asset.
3. The encrypted sector of US stocks will usher in an IPO boom.
4. More products that imitate the gray scale will be launched, intensifying industry competition.
5. Bitcoin ETF is expected to go online.
6. NIST selected the final anti-quantum encryption algorithm, and the upgrade of Bitcoin’s anti-quantum encryption algorithm entered the discussion stage.
Finally, I suggest that newcomers in the circle should not touch other coins and take good BTC in their hands. Insist on buying, buying and holding (referring to the cold wallet), do not touch futures, and back up your mnemonic words. People outside the circle have extremely high interest, but they are afraid of stepping on pits. They must spread valuable and meaningful information about the industry.
