Here we are, the first Monday of 2021.
Crypto got off to an excellent start with Bitcoin for the first time yesterday, which also happened to be the 12 year anniversary of its creation. For Microstrategy, Bitcoin's continuing price rally has seen the value of its investment in value.
Ethereum also began the year solidly, trading above $1k this morning and well on the right path to close in on its $1,433 ATH. The second largest crypto by market cap posted gains of 450% in 2020, far exceeding Bitcoin's 300% gain over the course of the year. According to data released by Glassnode, addresses holding Ethereum were also up by in 2020.
Polkadot has too made extraordinary gains of over 70% during the past week and has overtaken Bitcoin Cash to become the 6th largest digital asset by market cap.
Anthony Scaramucci’s multi-billion-dollar investment firm SkyBridge Capital has reportedly invested $182 million in Bitcoin, according to an investor brochure about its forthcoming Bitcoin fund.
SkyBridge Capital is launching a Bitcoin-specific fund next month and has already applied to the US market regulator for its approval. The fund will be available only to accredited investors and will require a minimum investment of $50,000.
“Bitcoin is digital gold,” the pitch stated. “It is better at being gold than gold.”
The relationship between Bitcoin and India has long been a pretty a complicated one. Following a prolonged period of preventing Bitcoin companies from doing business with banks, the Indian government is now considering imposing a flat 18% rate of goods and services tax (GST) on Bitcoin transactions.
Figures by the ministry’s Central Economic Intelligence Bureau, or CEIB, put the estimated Bitcoin transaction volume in India at over $5.4 billion. Thus, the proposed 18% tax could see the government earning about $970 million from crypto taxation.
Israeli cryptocurrency trading/investment management platform eToro is considering going public.
According to an article from by Israel-based news outlet Calcalist, eToro is in talks with Goldman Sachs to introduce an IPO at a valuation of $5 billion. Reportedly, the firm plans to complete the initial offering during the second quarter of 2021.
Rumours of the IPO follow recent reports that eToro doubled its revenue to $500m in 2020 and gained over 5 million new customers during the year. The article also mentions the company is open to the possibility of a merger with a special purpose acquisition company for the "purpose of accelerating entry into Wall Street trading."
After a year like 2020, you might not have much use for predictions. Still, continuing the tradition this time of year, we dusted off our crystal ball in attempt to see what could happen in crypto during 2021. Check out Dmitry's take on whether DeFi will continue to crush it, why central banks will hold Bitcoin soon and if a Bitcoin ETF will become a reality in 2021.
Ethereum 2.0 is finally on its way with the beacon chain launch last month as part of Phase 0 of the roadmap. The move to Proof of Stake means Ethereum investors will be able to participate in securing the network and earn ETH rewards for doing so. This process is called validating or being a validator for the network. If you're vaguely aware of the process but haven't looked into it closely, make sure to check out our latest article on how to stake ETH 2.0.
Subscribe today to receive these updates directly to your inbox every Monday morning.