Can we predict cryptocurrency? Since it is a volatile market, Cryptocurrency predictions are purely based on speculations, and theories. The guesswork depends on various factors such as historical data, competition in the market, demand and supply, cryptocurrency popularity, laws and regulations in regions, and many other factors.

Cryptocurrency Predictions help crypto users understand the future market to act appropriately into strategizing plans and risk management. Many institutions and websites facilitate crypto predictions based on the factors mentioned above, and one such major prediction is the massive cryptocurrency adoption in 2021!

On the contrary, you should also understand that these predictions are based on conjectures and not completely rely on. The cryptocurrency world is evolving, thus these predictions can be a tricky endeavor. Cryptocurrency predictions can be used to learn and understand the future crypto market and what measures you can take to manage your assets, it also helps to make investment decisions and what can you expect.

In this blog, we are going to discuss 5 Crypto Predictions For 2021 - You Can’t Ignore

1. Crypto and Blockchain to Skyrocket

In 2020, Bitcoin rocketed the crypto market with 300%, so what is in store for BTC in 2021? According to the Citibank report, Bitcoin is expected to hit $318,000 by December 2021, acquiring a 981% surge compared to 2020. However, bitcoin is not the only crypto that outperformed itself; other cryptocurrencies, such as, Ethereum that surged 473% in 2020. Hence, price rallies of major crypto assets such as BTC, ETH, and LTC are expected in 2021.

While on the other hand, Ethereum 2.0 is in the news to make an impact on DeFi and stablecoins. To date, DeFi has made significant developments that are expected to accelerate this 2021. NFTs - non-fungible tokens are also in the hype, and will grow tremendously this year.

Also Read, Best 10 DeFi Projects In 2021

2. Massive Adoption of Blockchain Technology and Cryptocurrency

Blockchain was introduced with Cryptocurrency; however, with time people realize that it is not the only use case. Blockchain can be used in various industries and purposes because of its features and functions. With time it is being recognized worldwide, and many call it the “Next Generation Technology”.

Cryptocurrencies are also expected to be adopted on a large scale; wherein, many large companies have either started or are working on accepting crypto as a payment method. Adoption of Blockchain and Cryptocurrency notably in various fields is anticipated this 2021.

3. Banking will adopt Cryptocurrency

The banking space is also expected to adopt cryptocurrency this 2021. According to sources, one of the Central Banks is working to use cryptocurrency to digitalize its national currency. Many countries are also working on supporting the cryptocurrency payment infrastructure. Thus, Central Banks are expected to either accept cryptocurrency or issue their own tokens. This 2021, atleast one bank is expected to use Cryptocurrency fully-fledged.

Also Read, Investing In Cryptocurrency This 2021

4. Institutional Capital Inflow will Accelerate

In 2020, the Fidelity Digital Assets conducted cryptocurrency research as an asset class for investments. They released a press release that included the summarization of their findings:

“Digital assets are gaining in favorability and appeal amongst institutional investors, with almost 80% of investors surveyed finding something appealing about the asset class. In a comprehensive survey of almost 800 institutional investors across the U.S. and Europe, 36% of respondents say they are currently invested in digital assets, and 6 out of 10 believe digital assets have a place in their investment portfolio. These and other findings from a Fidelity Digital AssetsSM survey cast an in-depth light on a class of investors who have widely been expected to lead broad adoption of digital assets.”

Hence, the crypto market in 2021 is expected to gradually receive momentum in capital inflow.

5. Regulations on Cryptocurrency and Blockchain

Cryptocurrency is based on blockchain, which is a decentralized network, thus, no government can own it. However, they can put regulations on the usage of it or levy tax. This year, cryptocurrency is expected to run under regulations in various forms in major jurisdictions.

These are the five major predictions expected this 2021

Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.