2021 Bitcoin Outlook: Go Long amid Bullish Markets

WikiFX News (12 Feb.)- Bitcoin may continue its bull run in 2021. Choppy corrections during the boom will only knock out speculators who trade blindly.

The Federal Reserve in the past year printed an unprecedented amount of money to support the coronavirus-stricken economy. It provides a great chance for bitcoin, a central pillar of the emerging assets chosen by US institutions in 2020 and 2021, to sustain its bull run.

Notably, the reversal in bitcoin usually indicates a plunge as large as over 30%, and the following wild swings may lead to a double dip. Traders should bring attention to risk management.

The co-founder of Gemini tweeted that the number of hedge fund managers and investors discussing bitcoin with him had reached a new high recently. It epitomizes what happened in the US. The rich adopt bitcoin as a hedge against inflation, out of concern that the large-scale supply would destroy money's purchasing power. But it doesn't mean the market for virtual currencies is reaching the saturation point. Instead, the co-founder said investors entering the market kept increasing, with funds pouring in continuously.

DeFi protocols have been hitting new highs in total value locked, boding well for the price of bitcoin. Thus long-term investors could continue to hold their positions.

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