4 Upcoming Trends Bitcoin Investors Should Look Out For:
For most cryptocurrency investors, 2021 is a year that started dynamically, with market conditions indicating further growth in the coming months. The so-called “parabolic” market seems to be catching a breath before we head towards new highs.
Along these lines, we decided to create a short blog post with some of the most important cryptocurrency trends you should be paying attention to. If observed and analyzed properly, these trends could offer invaluable insights that can lead to lots of profits in an already bullish year!
Trend #1 – Options trading is on the rise
With the massive participation of institutional investors, anyone who decides to explore Bitcoin feels a lot more trust and confidence towards its long term potential. However, most retail buyers can only afford a small allocation towards it. This is why a wide range of financial products has been established.
During the latest bear market, we saw the industry introduce a wide range of derivatives products, among which Bitcoin options trading as well. As retail interest increases, we expect crypto options to see massive growth.
Trend #2 – Institutions adopt Bitcoin
As mentioned above, we now see a large influx of institutions, all of which purchase Bitcoin as a hedge against inflation. More specifically, we saw public company MicroStrategy invest all of its cash reserves into BTC last September, a move that kickstarted a trend that continues to grow rapidly.
Since this investment, Bitcoin has not only grown nearly 400%, but financial services like Paypal and CashApp are now offering an easier gateway to its use. We expect this trend to eventually lead to a supply shortage, which will increase the price of the coin to new highs.
Trend #3 – DeFi continues to grow
Decentralized Financial applications continue to grow in popularity, as the world understands their benefits over their centralized alternatives. The brief bull run in DeFi projects, which occurred in the summer of 2020, led to more than $14 billion locked in smart contracts. We expect this number to grow further in 2021, increasing the value of popular DeFi cryptocurrencies as well.
Trend #4 – Growth in NFT markets
NFTs or creators work on a tokenized platform, continues to grow. In 2020 we saw explosive growth in digital art as well as virtual land sales. We expect this trend to continue as the world moves towards a digital-first approach.
