Op-Ed: 2021 and What’s To Come

Disclaimer: Comments mentioned in this opinion piece are not to be taken as financial advice.

2021 has been an intensely volatile year not only in the pandemic-stricken world, but also in crypto. This half-year so far has been filled with drama of all types: massive bull run, Elon Musk-types playing with the market, China bans (again), etc. We started 2021 off with bitcoin at approximately $25,000, a strong start considering exactly a year before that in January 2020 bitcoin was approximately $7,500. What’s perhaps more exciting was the altcoin run everybody enjoyed (possibly too much) from the end of last year until April 2021. DOGE dominated the headlines for the better half of the first 2 quarters, reaching 18,000% on YTD growth at one point. The DOGE hype seems to have peaked when Elon Musk appeared on SNL, hitting ATH around $0.74, which is a feat in itself.

Dogecoin’s meteoric rise from sub-$0.05 to $0.75 largely lead the influx of retail investors and spawned many meme-coins to follow.

Dogecoin’s rapid growth brought along a multitude of copycat (or copy-“dog”) coins like Shiba Inu, Kishu Inu, and other Inus. Fueled by DOGE’s popularity, these coins skyrocketed for a short period of time before being destroyed in markets (not to the surprise of many veterans).

Following the crash the meme-coins, China added fuel to the fire by “banning crypto” yet again, officially ending the bull trend (for now) and dropping bitcoin from $64,000 to lows of $28,000 thus far. Some positive news did arise shortly after with El Salvador declaring bitcoin legal tender (meaning we can now spend bitcoin and all vendors must accept bitcoin in the South American country).

The important question on most people’s minds is: what’s next? As they say: What goes up must come down. And bitcoin is no exception. A meteoric rise to $64,000 is sure to have consequences. But, if we zoom out a little bit and look at the overall market, I think it actually looks great. If you’ve been around since pre-2017, you’d notice that the market is far more developed than it was just a year or two ago. The amount of retail investors, institutional investors, and companies has risen astronomically in a very short amount of time. Bitcoin is far more accepted as a digital gold than it ever was. With the rapid rise and fall of the meme-coin market, I’m not surprised the gods decided to punish us for our greed. Keep in mind the global stock markets went through a similar rise in the past six months or so with a bit of a quelling effect now too. I’ve said it since the beginning of the pandemic: as long as money continues to be printed at these rates, the bull run will not end. I think we are in a miniature pause or cool down before the bull run continues. No, I do not think this bearish trend will last as long as it did in 2018 to 2019. Most people are still stuck at home, travel cannot start, the government is printing more and more money, and people are looking to invest. Once there is a culmination of people investing in crypto simultaneously for even a period of a few days, a bullish trend will start again. I’m almost certain.

Good luck and may the second half of 2021 be even better than the first.