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2021 kicked off with a 46% surge in the bitcoin price and a return to annualized volatility not seen since Black Thursday 2020. What lies ahead for the digital asset market?

Kraken Intelligence, our team of in-house research experts, has released its January 2021 Market Recap & Outlook Report, designed to provide a comprehensive overview on the top performing crypto assets and lend insight to what could be on the horizon.

Inside, we examine the fundamental factors that drove the prices of BTC, ETH, ADA, DOT, LINK and LTC higher, unpack how GameStop left the traditional markets in disarray and detail data that suggests a surge in digital asset exchange users might soon lead a new wave of adoption. 

By downloading our report, you’ll gain new insights into fundamental adoption, industry growth and bitcoin’s historical first quarter performance.

Key Takeaways:

• Historic Volatility – Bitcoin’s annualized volatility exploded to levels not seen since the Black Thursday crash in March of 2020. One of the most volatile months of the past six years, bitcoin still finished up +14% — the fourth consecutive month of positive returns. 

• A New Wave – The increase in r/Bitcoin subreddit subscribers has historically coincided with bitcoin bull market cycles. The subreddit increased its members by over 2 million in January. It would appear that bitcoin is in an accelerating growth stage and continuing to attract interest from new market participants.
• Whales Gonna Whale – January marked the third straight month where wallets holding over 100 BTC continued accumulating bitcoin. In spite of wallets holding less than 100 BTC selling and accelerating the correction, these large wallets generated a net accumulation of BTC for the month.
• Bull Market Support – The technical analysis of bitcoin maintains a picture of strength. Weekly moving averages are trending higher and represent lines of defense for the bull market cycle, meaning that a drop below $30,000 is growing increasingly unlikely as February passes.  

 

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