What are the prospects for bitcoin and the digital asset market in 2021? To get this answer, PanoramaCrypto talked to some of the largest cryptocurrency authorities in Brazil and compiled the answers below. Among them is Transfero CEO Thiago Cesar, the only Brazilian on the list of the 30 most influential in blockchain and crypto, according to analyst Edward Moon’s ranking. But we also heard the CEO of Foxbit, João Canhada and Vinicius Frias, from Alterbank.
The price will stabilize at a new level and above
For Transfero CEO Thiago Cesar, the bitcoin, after reaching its all-time high, may suffer some adjustments but should not return to the level of US$ 10,000. “A new level of US$ 15,000 to US$ 20,000 should be a reality throughout 2021, but it is foreseen an uptrend. As they say, when bitcoin falls, it falls upwards”, he jokes.
And he gives the formula to those who want to take advantage of this movement. “Anyone who has an interest in buying should use the average price strategy. That is, buy a little every week or every month to capture better moments of entry. But because of bitcoin’s mathematical premises, in the long run, the trend is upward.”
Institutional investors will set the tone for the market
Thiago Cesar also sees a more significant entry of institutional investors in the market, exceeding what has already occurred in 2020. “This year was marked by Microstrategy’s entry and some Paul Tudor Jones funds into the market. That is, more and more bitcoin is no longer a taboo and is becoming mainstream. As a whole, the price is expected to rise to the level of US$ 25,000 to US$ 30,000 by the end of 2021.”
Bitcoin outlook in 2021: test year for DeFi
For Cesar, 2021 will be a test year on the DeFi platforms born in 2020, including Compound, Yearn Finance, Aave, Chainlink, and others. “All these platforms will pass the massification test. It is also the year for the structure of DeFi, which is the Ethereum, to mature to 2.0. So it will be important to keep an eye on this race between the DeFi protocols that can further consolidate and bring use cases to users”, he encourages.
Central bank policies dictate increased interest in bitcoin
The issuance of money from central banks to bail out their economies will also influence the market in 2021. “Central bank’s unbridled money-taking policies tend to make bitcoin to appreciate because more individuals and companies will seek the asset as a free store of value from these interventions. The amount of dollars issued has already exceeded all the comprehensible limits of how much the U.S. can cover this debt”, Cesar warns.
Brazilian market enters a turning point
For Vinicius Frias, CEO of Alterbank, the Brazilian market will enter an interesting tipping point. The reasons are various including: foreign players of relevance entering the local market competition; maturing of Brazilian companies, where some are well-capitalized and with great professionals, and venture capital looking at blockchain and crypto companies and understanding that there is a large market to be developed.
“For 2021, the trend is for more institutional players to be added/exposure to the crypto market, bringing their market value to levels not yet tested since 2017, in a much more mature environment than it was at that time”, says Frias
New giants and billionaires in bitcoin among the prospects for 2021
According to The CEO of the Brazilian exchange Foxbit, João Canhada, the outlook for 2021 are of new giants, as some billionaires and large companies have done this year, announcing that they are working with bitcoin, or acquiring the currency, further positioning this asset as a store of value. “This will bring impacts on price in halvings (when supply is cut in half) always in the following year the bitcoin had historical price highs surpassing up to ten times the previous tops. If this happens, we will see bitcoin at US$ 200,000 still in 2021.”, he anticipates.