3 key ways that Bitcoin’s 2021 bull run can differ from 2017

Bitcoin’s price has surpassed its 2017 peak, but should investors expect the top-ranked altcoins to do the same?

After a rather long wait, the price of Bitcoin has finally returned to the same price range it had 3 years ago. In 2017, when the price of Bitcoin (BTC) peaked at about $19,900, most alternative currencies also posted weekly gains of 200% or more.

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Fast forward to the present, and BTC’s price of USD 19,100 is virtually identical to what it was on December 17, 2017. Anyone might think that not much has changed, even though some altcoins failed, but that couldn’t be further from the truth.

Daily view of crypto-market data.

Much has changed in the cryptomarket sector and, compared to 2017, a significant amount of the necessary infrastructure has been built.

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Today, strictly regulated derivatives are offered through the launch of the CME and CBOE futures contracts, and the rapid growth of institutional investors is providing an inexhaustible source of demand for Bitcoin.

A new series of decentralized finance platforms (DeFi) has also emerged with a market capitalization of billions of dollars. They support a new system of lending, synthetic swaps and interest earning systems for a whole new set of investors.

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Compared to 2017, there is a large amount of easily accessible data related to price and market capitalization classification. This should help investors better understand how the current market differs from the market in 2017.

We can better understand what the crypt-currency market will look like in a couple of years by analyzing the differences.

What has changed since 2017?

The 24 major crypt currencies in December 2017.

As for the classification of the crypt-currencies by market capitalization, four of the five main ones remained the same. Interestingly, the market capitalization of Ether (ETH) and XRP is relatively the same with USD 69 billion and USD 28 billion, respectively. This movement occurred despite the fact that both cryptom currencies experienced a 15% drop in price since December 2017.

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This effect is caused by the issue of new coins. For example, Ether’s coin supply increased from 96.4 million to 113.7 million. Equivalent inflation amounted to 17.9% in three years. By way of comparison, the total number of Bitcoin in circulation increased by 10.8% in the same period.

Aside from Bitcoin, Ether and XRP, the remaining crypto currencies in the top 20 suffered large losses. IOTA lost 91%, Bitcoin Cash (BCH) 84%, Litecoin (LTC) 73%, and Cardano (ADA) recorded a 70% loss.
The top 24 crypto currencies in December 2020.

It is worth noting that of the current top 15, the only newcomers are Chainlink (LINK), Polkadot (DOT), and Binance Coin (BNB). It should also be noted that Polkadot did not exist in 2017 or 2018.

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On the other hand, Ether’s competitors such as Cardano, EOS, NEO, Ethereum Classic (ETC), and QTUM seem to be losing ground. Last year, they were replaced by interoperability tokens such as Chainlink and Polkadot.

The 3 current major currencies, BTC, ETH and XRP, attract a market capitalization of USD 448 billion, representing a 7% increase in three years. Meanwhile, the remaining 21 leaders currently have a market capitalization of USD 77 billion, which is a decrease of 41%.

One would automatically assume that Bitcoin’s dominance has increased tremendously at this point, but it’s only up by 2% to the current 63%. This effect is only possible by adding hundreds of new tokens. The three sectors that stand out are exchange tokens, stablecoins, and finally the decentralized finance sector (DeFi).