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Crypto whale predicts Bitcoin to break $55,000, Ethereum to hit new high in 2021

  • A crypto whale has made his 2021 predictions, which includes Ether setting new all-time highs and Bitcoin shooting past $55,000.
  • The investor predicts a bumper year for DeFi tokens, with Yearn Finance and Compound Finance set to pave way for mainstream entry into DeFi.

Ethereum is going to set a new all-time high in 2021, one cryptocurrency whale predicts. Known on Twitter simply as 0x_b1, the respected investor also predicted that Bitcoin would top $1 trillion in market capitalization before it makes a correction.

2021 predictions

0x_b1 shot into the spotlight just days ago after he revealed his stash of cryptocurrencies on Twitter. He currently owns 441 Ether, worth over $473 million at current rates according to Etherscan. His biggest position is in Compound Ether (cETH) where he owns over $122 million worth of the cryptocurrency. cETH is the wrapped version of Ethereum for use on the Compound Finance borrowing and lending platform.

The investor also holds $69.2 million worth of Aave Interest Bearing LINK (aLINK), $59.9 million worth of Compound Wrapped Bitcoin (cwBTC) and $37.7 million worth of Interest Bearing ETH (ibETH).

In his predictions, he foresees a bumper year for Ethereum, a cryptocurrency that many analysts have placed on the top of their lists for the year.

0x_b1 also predicts a continued rise for Bitcoin, hitting an all-time high at $55,000 before the year ends. However, he believes that we will see a correction towards the end of the year which will bring back the price below $30,000.

Bitcoin is currently trading just below $35,000 at press time. The top cryptocurrency has had a turbulent week, shedding $12,000 in just a few hours on Monday to trade at $30,000. However, as Crypto News Flash reported, the cryptocurrency has shown strong recovery to regain some ground. Many analysts have predicted BTC’s price to get back to its bullish trend as the fundamentals remain strong despite the dip.

Billion-dollar IPOs, DeFi mainstream appeal, and more

Aside from the two top cryptocurrencies, 0x_b1 predicts that decentralized finance (DeFi) protocols will finally go mainstream. He believes that Wall Street banking giants like JP Morgan, Goldman Sachs and Citibank will finally begin exploring Compound Finance and similar platforms “for CBDC, cross-FX, and borrowing/lending.”

Citibank has previously revealed that it has been working with central banks globally on the development of CBDCs. The bank’s CEO Michael Corbat defined CBDCs as an “inevitable development in the future of money” last month.

Aside from Wall Street, retail investors will delve more into the DeFi space in 2021, he further predicts. Yield aggregators such as yearn.finance and Harvest Finance will pioneer this rise, allowing smaller investors to access the DeFi markets seamlessly.

The continued mainstream interest in cryptocurrencies will lead to some multi-billion dollar IPOs in the industry. The cryptocurrency whale predicts a number of IPOs that will exceed $3 billion valuations, including Coinbase and BlockFi.

Coinbase revealed last month that it has filed confidentially for an IPO. Its last funding round valued the company at $8 billion, setting the stage for the industry’s largest IPO when it goes through. BlockFi, on the other hand, hired a CFO in July last year, with one of his roles being to guide it to an IPO in the second half of 2021.

0x_b1 concluded by claiming that he believes the Biden administration will foster the growth of the cryptocurrency industry.

About Author

Steven Msoh

Steve has been a blockchain writer for four years, and a crypto enthusiast for even longer. He is most excited by the application of blockchain to solve the challenges facing developing nations.

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