Today I’m going to try to make some predictions about the crypto markets in 2021. Let’s dust off the crystal ball and get started. Here’s what I think will happen:
- Bitcoin will reach at least $50,000 next year.
- At least five more large publicly-traded companies will buy bitcoin as a hedge. These new companies will join MicroStrategy and Square in adding this alternative asset to their treasuries.
- Overall, altcoins will lag behind bitcoin — but select altcoins will outperform.
- At least eight insurance companies will follow MassMutual’s lead and purchase at least $50 million worth of bitcoin (probably a lot more in some cases).
- At least five pension funds will purchase at least $50 million worth of bitcoin.
- There will be a flood of new wealth management firms offering bitcoin services.
I continue to believe bitcoin will lead the way for crypto in 2021. Although DeFi (decentralized finance) is making a huge push for real world use cases, it still lags pretty far behind BTC. Bitcoin is truly evolving into digital gold now — and I think it will continue to be the crypto of choice for institutional investors for a long time to come.
In terms of our altcoin portfolio, I am currently most excited about Haven Protocol (XHV) for the year ahead. I think it has significant upside potential from here. Needless to say, this is a small altcoin with anonymous developers leading the project — so there is definitely risk. But at this small of a market cap, I think it’s well worth the risk. Just don’t bet more than you can afford to lose.
I will continue to scout for outstanding altcoin opportunities, but I am struggling to find new positions worth buying on a fundamental basis. This is more of a momentum-based altcoin market right now. And while there’s certainly money to be made, I’m not much of a short-term trader. However, I will continue to look and let you all know once I find something that’s worthy.