The crypto market ended 2020 on a tear higher, with most cryptocurrencies advancing against the dollar. Unsurprisingly, Bitcoin was one of the top performers, more than tripling in value in less than two months.
While Bitcoin reached $35,000 at the end of last year, Ethereum had an impressive performance as well. Ever since PayPal announced the acceptance of some cryptocurrencies on its online payments platform (Bitcoin and Ethereum among them), a bullish run started.
The bullish run was enough to trigger some FOMO (Fear Of Missing Out) buying and now the largest U.S. banking regulator came out with new guidance allowing banks to use public blockchains. Will this lead to a new bull run in Bitcoin and Ethereum?
New Legislation from the U.S. Treasury OCC
The U.S. Treasury OCC (Office of the Comptroller of the Currency) is an independent bureau part of the institution that deals with the supervision of all national banks. It just announced that it would allow U.S. banks to use public blockchains and dollar stablecoins as a settlement infrastructure, in what seems to be a new leg into the adoption of the DLT (Distributed Ledger Technology) in the financial system.
The new is a huge win for the crypto and stablecoins fans because it allows public chains to be treated no differently than, say, SWIFT. What if this leads to more economic activity to be executed on chain?
Bitcoin’s rally in the last two months of the last year took many by surprise. From the moment it broke above the $20,000 it did not look back. So far, it topped at $35,000 and was quickly sold at the start of the trading year. Yesterday’s drop was strong enough to scare even the most daring crypto fan, as the leading cryptocurrency dropped 15% in a few hours. However, buyers stepped in while below $30,000 and the new piece of information from the U.S. Treasury may be just what Bitcoin needs for starting a new leg higher.
Just like that, 2021 might become the year we see mass adoption of crypto and stablecoins. If that is the case, the recent bullish run seen in the digital space is only the start of a prolonged bullish trend. We have seen noticeable interest in the crypto market in 2020; will it continue in 2021 too?