There's no doubt that Bitcoin is at the top of the list of amazing events of 2020. Let's keep in mind that 2020 started with a BTC of $7,236, which now stands at $28,265. Exponential growth!

However, this year's Bitcoin rally wasn't a straight line, there were several declines that once again put many crypto investors in doubt.

In fact, after Black Thursday, many condemned Bitcoin after it failed to deliver on its promise to be stronger than traditional markets. However, the leading crypto proved its potential and attracted multiple institutional investors who now make up a substantial part of the market.

Now that we know what happened, we ask ourselves: What does 2021 hold for Bitcoin? As always, there are multiple opinions in the crypto community: some think that crypto leader will reach six figures while others see the end of Bitcoin due to regulatory obstacles.

For example, Tom Fitzpatrick, an analyst at Citibank, said Bitcoin could skyrocket to $318,000 by December 2021. Also, Mike McGlone, an analyst at Bloomberg, said Bitcoin is poised to continue its rebound through 2021 and potentially see a price resistance of $50,000.

According to CNBC, the crucial trends for Bitcoin in 2021 are Increased general acceptance, increased competition from Big Tech, increased competition from central banks, a new regulatory field and, of course, volatility will continue.

However, not everyone can be optimistic. Nouriel Roubini, argues that the leading crypto will collapse as a result of future regulation.

MY all time favorite Crypto person: Anthony Pompliano, AKA Pomp with a new podacst

"No single person or organization gets to choose who gets amplified and who gets silenced. The power of choice was striped from the user and is now being monopolized by the platform creators."

Must listen: https://pomp.substack.com/p/decentralization-is-a-necessity-now

Do not miss another important lesson from Pomp.
https://pomp.substack.com/p/bitcoin-is-the-most-regulated-currency

On 2nd October, the European Central Bank (ECB) announced that it is seriously considering the idea of a digital Euro and that its study of the idea should start by mid-2021.

The ECB report looks at how that might affect payments to retailers now and in the future, as well as look at the ways in which virtual currencies would fit into the whole Euro system. However, the report does not suggest what digital currency model the ECB might use.

The report also suggests that the ECB may start a virtual currency programme in the middle of 2021 “to ensure meaningful answers are obtained to the open questions raised.” It is likely to begin with an investigative phase where numerous experiments are conducted, and there will also need to be a stage in which the ECB consults with all the stakeholders in the Eurozone.

The ECB report also pointed to the idea that digital currencies promote better financial inclusivity, stating: “The possible advantages of a digital euro and the rapid changes in the retail payment landscape imply that the Eurosystem needs to be equipped to issue it in the future. A digital euro could support the Eurosystem’s objectives by providing citizens with access to a safe form of money in the fast-changing digital world. This would support Europe’s drive towards continued innovation. It would also contribute to its strategic autonomy by providing an alternative to foreign payment providers for fast and efficient payments in Europe and beyond.”

There will be several hurdles to jump before a digital euro is created. It must “keep pace with technology” and be available “through standard interoperable front-end solutions throughout the entire euro area and be interoperable with private payment solutions.” It must also match the features of cash in that it must be “easy for everyone to use, be free of charge, and protect privacy.”

The ECB said the digital euro must also be available outside the Eurozone, save costs and be environmentally friendly, signaling that it should be based on technology that minimizes ecological footprints.

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https://medium.com/@lendoplatformltd/prepare-for-a-digital-euro-aa2e3b4e26f6

According to Cointelegraph, Bitcoin (BTC) volatility is at a 16-month low. The BTC options aggregate has increased to $2 billion, which is 13% below it’s all-time high, plus the Chicago Mercantile Exchange (CME) has also reached $300 million.

These option derivatives contracts offer buyers protection from both the upside and downside, and the fact that liquid options currently exist in the market is a positive trend.

They allow miners to stabilize their income, while market-makers are able to use them to hedge their trades. In short, “deeply liquid markets attract larger participants and increase their efficiency.” An implied volatility can be useful. When traders believe there is a larger risk of volatility in the price, this indicator shifts to a higher position, but the opposite happens when there is an expectation of less dramatic price movement.

For Bitcoin owners, a lower perceived volatility is good news, as it is often a signal of a significant price movement, and that market makers are willing to sell protection on lower premiums. Investors then need to shift their focus to futures markets and analyse whether or not there may be a dramatic price shift. It often leads to more investors joining the market, or that existing ones increase their positions.

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https://medium.com/@lendoplatformltd/is-a-dramatic-bitcoin-price-change-coming-fadf802d8bc9

This could be a momentous week of change and chaos for the United States as the election polls close on 3rd November. What might happen to Bitcoin? It has started this week at $13,500: will it hold its strong position, or will we see some volatility?
Cointelegraph has identified five things that might influence the crypto markets, including the latest lock-downs in Europe.

Presidential elections are the kind of event that has a huge impact on all markets. The market makers will be considering what the new president’s policies will be at a time of global instability due to the pandemic. It is believed that whatever the result, there will be a rush towards safe haven assets, such as gold and Bitcoin.

In Europe, the outlook for the markets is bleak due to the various lock-downs. Cointelegraph says, “Amid fresh warnings of contractions in economic activity due to the measures, markets began shrugging off even bullish signs in favor of reducing potential election fallout.”
Furthermore, the European Central Bank (ECB) is printing more money. One trader called MMCrypto, told people on Twitter to reduce their investment in fiat currencies: “The crazy news is that the businesses which have to close will get up to 75% of their revenue in freshly printed money.”

Other things to keep an eye on include “yet another so-called “gap” to open up in futures markets.” Zack Voell said, “CME Bitcoin futures opening with a gap up for the fourth consecutive week. That’s pretty bullish.”

Also, analysts remain bullish over Bitcoin’s monthly close, with institutions seeing the monthly close figure as an essential tool for reinforcing bullish sentiment. Let’s not forget that Bitcoin began October trading at around $10,750.

Lastly, there is a shake up happening in mining. Cointelegraph says, “Difficulty, a measure of the competition and economic health of miners and an essential part of Bitcoin’s self-maintaining ecosystem, is set to drop by the most since March on Tuesday.”

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https://lendoplatformltd.medium.com/watching-bitcoin-in-the-week-of-the-us-elections-cc1559a96e41