Cryptocurrency market data provider Coin Metrics says that after making major strides in 2020, Bitcoin is poised to fly even higher in 2021.
In a new report, Coin Metrics highlights Bitcoin’s notable achievements this year.
“Over the course of 2020, Bitcoin added over $300B to its market cap. The amount of daily active addresses doubled, and the number of addresses holding at least 0.01 BTC grew by over 700k.
While adoption grew, Bitcoin veterans continued to hold strong. Bitcoin’s velocity dropped by close to 10% on the year, and the amount of supply active within the last 2 years decreased by about 11%.”
The crypto insights provider credits Bitcoin’s ascent to the influx of institutional investors. Coin Metrics names the $50 million investment of payments firm Square in Bitcoin and the $100 million BTC purchase of insurance company MassMutual. The crypto data provider also notes that publicly listed companies, led by business intelligence firm MicroStrategy, started to allocate part of their treasury reserves to BTC.
In addition, Coin Metrics emphasizes the entry of billionaire investors Bill Miller and Stanley Druckenmiller into BTC who both compared the leading cryptocurrency to gold.
According to the crypto data provider, BTC’s current bull rally is different from the one it had three years ago.
“November brought more signs of a growing institutional investor base. Throughout the month, bitcoin price moved upward more during hours that US markets were open than during hours where US markets were closed. This was not the case during bitcoin’s 2017 bull run, which was more retail driven.”
As Bitcoin closes out the year strong, Coin Metrics says that with BTC’s current momentum, it is now “on the verge of reaching unprecedented heights” next year.
You can read the full report here.
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