On the webinar dedicated to price predictions for Bitcoin and Ethereum in 2021, experts of the first Digital Asset Bank highlighted three trends that would influence the cryptocurrency sector. Login Casino is always at the forefront of the most interesting cryptocurrency news and shares with readers the most important information concerning the factors that will influence the crypto market.
While cryptocurrencies are still a mysterious sector for most people, experts know plenty of details and pitfalls in the regarded sphere. However, even the best ones usually prefer to highlight trends and describe the reasons for the changes, but not directly predict a particular crypto asset price. During the webinar "2021 Predictions for Bitcoin and Ethereum" organized by Sygnum Bank, Fabian Dori, Martin Burgherr, and Dominic Lohberger, who are the company’s representatives, shared three trends that would be in the regarded sector in the current year.
What will be influencing the prices of Bitcoin and Ethereum in 2021?
The experts started with the obvious trend but explained it in more detail. Thus, financiers admitted high volatility that would be present in the crypto market in 2021. They linked it to the increasing influence of the derivatives market, leveraged and risky nature of digital assets, and highlighted that the most popular world companies don't buy cryptocurrencies.
The second trend to know was the continuing support of digital assets from the macro-environment side. The financiers expect that governmental institutions will increase the inflationary money supply to help in post-coronavirus recovery, which will pressure banks to offer unattractive rates to clients. In this case, representatives of Sygnum predict that cryptocurrencies and digital assets will receive more attention from the side of investors.
The third impactful trend that will be influencing the overall crypto sector is the increasing merger and acquisition (M&A) activity. Experts predict that the higher prices on cryptocurrencies will force companies to merge and unite to increase possibilities. In parallel, interest in digital assets will force technology firms to enter the trendy sector as investors, blurring the border between finances and technologies. As the issue of clear legislation in the crypto industry is vital, some of the biggest market players can switch to the Asian region instead of the tough US one.
At the same time, the speakers understand that there are plenty of reasons that can turn the growing price trend into the negative one. Nevertheless, they believe that cryptocurrencies are only at the beginning of the way to be an influential financial instrument worldwide.