There seems to be no shortage of cryptocurrency investors these days as online exchanges have made access to the once mysterious assets easy and routine. Even mainstream apps like PayPal and Square have now started to allow users to buy and sell cryptos, and it is not unimaginable that nearly every bank with an online app will do so at some point in the future. Not surprisingly, cryptocurrencies have become a regular part of financial analysis and nearly every reputable financial site gives some sort of insight into the crypto industry. This makes for no shortage of predictions and forecasting, which we know can be dangerous, given the higher volatility of these assets.

Bitcoin: Perhaps nothing has as much bullish momentum behind it right now than Bitcoin, which says a lot as the stock market seemingly hits a new all-time high on a daily basis. But Bitcoin has managed to toe the line of the underground and the mainstream. It’s not for everyone, but now, everyone has access. Those that are interested and want to access it are looking at how to buy bitcoin with credit card as well as how they can build on their bitcoin as time goes on. Many investors want nothing to do with the volatile asset that admittedly just acts as a stored value right now, as it has yet to truly be accepted as a global currency. In fact, in some countries, cryptocurrencies are still banned! So what can Bitcoin do in 2021 given all of its bullish sentiment?

Perhaps no indictment of Bitcoin was greater than when recently Tesla CEO Elon Musk announced that his company had bought $1.5 billion in Bitcoin. Musk also went on to say that Tesla would be accepting it as currency for their cars in the future. Try and find a hotter confluence in our financial markets than Tesla and Bitcoin. What this story actually represents is the reality of so-called institutional whales buying and holding large amounts of Bitcoin as an investment. One of Bitcoin’s most valuable traits is its scarcity. At just over 18 million total Bitcoins in existence, we are rapidly approaching a time where all of the Bitcoin in the world are in circulation. This alone should drive the price up through the roof. Conservative estimates of $100,000 per Bitcoin by the end of 2021 are not out of the question.

Ethereum: Ethereum is a little more interesting and difficult for some people to grasp. Unlike Bitcoin there isn’t really a set number of tokens that are available, which means scarcity may inevitably prevent Ethereum from ever rising to the price levels of Bitcoin. Ethereum sits at roughly $1700 as of the writing of this article and has traced back after briefly touching all-time highs of over $1800. But that is over a ten-fold growth from January of 2020, where the token was valued at roughly $130 USD. In November of 2020, Ethereum 2.0 was launched which dramatically ups the amount of transactions per second on the blockchain. Like with Bitcoin, the strength of Ethereum is in its blockchain network for which it is named. Remember, Ethereum is the network, and Ether are the coins! With the scalability increase from the release of Ethereum 2.0 and the overall adoption and hysteria around DeFi, it would not be surprising at all to see Ethereum continue to rise in 2021. Some analysts have given Ethereum a long-term price target of as high as $9000, but realistically, with volatile global financial markets, we may see a steady rise in the price of Ethereum albeit not at the rapid pace we saw in 2020.

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