It’s been a ground-breaking year for Bitcoin which has been able to reach all-time highs, surpassing $24,000 and the expectations of many critics who thought it was just a fad. As Bitcoin shoots for the moon, there are more reasons to believe that it could achieve a $1 trillion market cap in 2021.
In one month alone the price added 50% as interest in the cryptocurrency spiked to unprecedented levels. Traders and investors are looking to the cryptocurrency to hedge against inflation and also make profits. One analyst believes that this is the beginning of a two-year run towards a $1 trillion Bitcoin market cap.
More people than ever trust the cryptocurrency. Celebrities and big time investors from traditional finance sectors have swarmed into the Bitcoin market, signalling positive sentiments for the cryptocurrency.
Banks are getting more optimistic about the future of cryptocurrencies, especially as it relates to central bank digital tokens which could lay the foundations for new ecosystems of commerce. Intelligence firm Microstrategy purchased $400 million worth of Bitcoin in August and its CEO, Michael Saylor owns over $250 million in Bitcoin.
“The digital version of gold but with more-limited supply and a history of adding zeros, appears to be in an early price-discovery stage and may simply continue its ascent in 2021,”
Bitcoin has had a big year so far (and 2021 could be even bigger). Bitcoin’s more than doubled in price through 2020 and this week surpassed its 2017 market capitalization, the combined value of all minted bitcoin tokens.
According to a commodity strategies at Bloomberg,
“$20,000 bitcoin is [the] primary hurdle toward [a] $1 trillion market cap,”