2020 was a tough year for everyone. However, it was a wonderful year for Bitcoin, a crypto asset (cryptocurrency).
The price of Bitcoin, which has updated record highs one after another, has almost quadrupled and exceeded $ 20,000 for the first time. Deep-rooted supporters welcomed it as a means of hedging inflation during an unprecedented large-scale easing phase by the central bank. Wall Street veterans Paul Tudor Jones and Stanley Drakkenmiller have also endorsed Bitcoin as an alternative asset, boosting prices.
“What’s happening faster than anyone can imagine at this point is that Bitcoin is moving from non-mainstream assets to mainstream assets,” said Matt Hogan, chief investment officer of Bitwise Asset Management. That’s what they are doing. ”
However, the growing attention to Bitcoin could also increase regulatory scrutiny, said Guy Hirsch, managing director of the United States at eToro, an online trading platform. “Despite the rapid rise in prices, the outlook is a bit suspicious,” he said, including the impact of some last-minute actions by the Trump administration, which is about to retire.
It is difficult to predict how Bitcoin will move in the future. However, it has risen by more than 300% in 2020, and many investors expect it to continue to rise next year. According to a Deutsche Bank survey, the majority of respondents predict that it will end in 21 years, with 41% expecting it to end at $ 20,000- $ 49,999 and 12% expecting it to exceed $ 100,000. Jim Reed, a strategist at the bank, said.
Meanwhile, Meltem Demiroll, chief strategy officer of digital asset management company CoinShares, pointed out that there are some concerns about the impact of the next Biden administration on the cryptocurrency industry. “Generally we have had problems with the Democratic Party, because it prefers regulation and surveillance,” he said.
Toro’s Hirsch is uncertain about the Biden administration’s measures against cryptocurrencies, but the former Federal Reserve Chairman Janet Yellen, who was appointed as the next Treasury Secretary, is negative about cryptocurrencies. He said the appointment of the next administration is noteworthy, as Gary Gensler, who may be appointed as the next Deputy Secretary of the Treasury, is known to be a pro-currency sect.