Crypto Market Analysis: January 2021


With the increased interest from institutional investors this year, the Crypto Market Capitalization is booming

Crypto market analysis 2021
Crypto Market Capitalization 2019 – 2020

The November’s Bitcoin bull run was met with a resistance at $18700 price mark. What comes as a surprise to inexperienced traders was predicted by a number of crypto market analysts, who expected the price of BTC to fall-off as we’re approaching the Big Sell Wall.

The main factor that is stopping Bitcoin from going past $19000 mark is its previous triumph, when back in 2017’s Bull Market it was massively bought for $20,000 by some unlucky investors. While many of these traders and investors chose to dump their bad purchase to get back some percentage of their bad deal, many others have patiently waited for years. It’s not a big deal if you sell $200 worth and lose 20%, but if you’ve bought several millions worth of Bitcoin — the waiting game doesn’t seem like a bad option.


Future of Bitcoin

Volatile crypto market is on the bull run, and in this article we will start our Crypto market analysis for 2021 with the King of All Crypto — Bitcoin.

The Bitcoin Sell Wall will be there as long as it takes for the market to consolidate. On my analysis, the Bitcoin will break through this barrier around The End of December 2020, when the retail hype is usually at its highest for Bitcoin.

They ATH buyers consider selling under $19,000 a bad deal, and by selling their bad purchase at above prices they drive market price down, making it a long road towards the much anticipated $20,000 Bitcoin.

Once this sell barrier is broken, there will be no significant factors holding down the price of the “Digital Gold”. Some high profile analysts conducted the Crypto market analysis for 2021, which concluded the price of Bitcoin to hit a shocking $318,000 by the end of 2021. On my analysis I assume in a year it will be traded around $40,000 – $50,000 making it a x2 – x3 increase.


Bitcoin is considered to be the “Digital Gold” but not practical as a currency, or as a utility coin that one can build upon. With that in mind, we can expect The Bitcoin to remain relevant in years to come.


The Big Ten

Top 10 Cryptocurrencies by market capitalization are ranking in the following order:

  • The Bitcoin
  • Ethereum
  • XRP
  • USDT
  • BCH
  • LINK
  • LTC
  • DOT
  • ADA
  • And the BNB

These coins deserved trust and affection from the crypto traders, and will remain relevant in coming years. Let’s talk about each of these coins in a brief analysis.


Crypto market analysis 2021

Ethereum — It’s more than just a coin, it’s a gas. A gas that powers a trillion dollar DeFi and ERC-20 Token industry. Ethereum is considered to be a go-to solution for businesses to build their own cryptocurrency on an existing network. The downside of this project is the slow transactions per second speed, which will be fixed in the next year or two by implementing the Ethereum 2.0 update. The update will be automatically issued by the Ethereum team upgrading the existing network. It goes without saying that this factor will drive the price of ETH upwards.


XRP — is one of the older players on the Crypto Market. Initially released back in 2012, it secured a position in the Crypto Market. Unlike BTC, which governs itself, the XRP is managed by Ripple Labs Inc. who put effort in its marketing, development and even control the supply and prices to some point. According to data from Ripple.com, more than a half of total XRP supply is in escrow contract or owned by Ripple team. Key features of Ripple are the aim to replace SWIFT as baking payment processing tool, ability to process over 1500 transactions per second and very low transaction fees. Some analysts predict the price to go $20 – $30 per one XRP in long term. Personally I watched XRP for a while and not risking putting my money into that project.


USDT — is a stablecoin that is widely used as a trade pair to other crypto to represent a value of 1 USD. 1 USDT = 1 USD is a market paradigm that is supported by the Hong Kong-based “Tether Ltd”. In the past it earned a good reputation as trustworthy stablecoin, which guarantees that each USDT is secured by real USD value. Currently, they’ve started using loans and other dubious assets as a way to justify their ability to mint billions of USDT at any given moment. USDT is not an investment opportunity, but given that you’ve continued reading to this moment — you probably know it already.


BCH — Bitcoin Cash is one of the older projects that introduced itself as a “Better Bitcoin”. The project uses features like “artificial scarcity”, low fees and faster transactions per second compared to BTC. With the 116 TPS it’s still considered as outdated. With my Crypto market analysis for 2021, I call it a high-risk investment.


Link — founded back in 2013, The Chainlink is a technologically advanced project that aims to take an important utility role. The project provides a technology that can be used to connect Blockchain to a real world data. Chainlink offers an end-to-end decentralization solutions for various kinds of businesses and will remain relevant in the coming years. I expect the price of the Link token to significantly increase, as more companies find use in this technology, thus increasing the real demand for Link tokens.


LTC — is another Veteran on the crypto market. Released back in the 2011 as another “Bitcoin killer”, it offers faster transaction speeds and smaller fees. Overall this project is very similar to Bitcoin, and some people call it “Digital Silver”. Based on my Crypto market analysis for 2021, I don’t find value in LTC and consider it a poor investment option.


DOT – Started around early 2018, Polka Dot is a new player on the Utility Crypto market. In just 3 years it gathered a lot of attention, capital and recognition from the Crypto businesses. It allows building fast and efficient Blockchain Apps easily, by allowing to construct it with pre-built blocks. Being the main competitor for the ETH, it claims to be able to send transactions at amazing speed of 1,000,000 transactions per second, vs Ethereum’s 15 TPS (up to 100,000 TPS after ETH 2.0 update). Without a doubt a Great Investment opportunity.


ADA — Cardano Network founded back in 2015, and offers the same DApp features are offered by the Ethereum and Dot. It allows creation of the smart-contracts and Decentralized Apps. With other big players on the crypto Dapp market, I wouldn’t place my bet on ADA.


BNB — The Binance token is the largest crypto Exchange’s brand token. The use cases for this token are found in trading on the Binance exchange. It can be used to pay for Binance trading fees and it’s used to power Binance DEX. I believe that this token is highly controlled by the Binance, and I wouldn’t put my money in it.


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