2021 Crypto year in review

In numerous ways, I would say that 2021 was a breakthrough year for the cryptocurrency market.

We have seen how Bitcoin hit new record highs, observed the emergence of a legitimate legal framework in many countries which is already having a big impact on the industry, and is gathering institutional support from large companies. The interest of ordinary people in cryptocurrency has skyrocketed this year, mainly because of opinion leaders such as Elon Musk and Jack Dorsey.

But let’s highlight the key events that inevitably influenced not only the BTC price, but the future of the crypto industry.

1. Coinbase IPO

I think that many people underestimate the importance of this event, especially after its share price has dropped significantly. I want to emphasise that no matter what the price of shares is currently, the very entry of the exchange into the first listing in the history of the crypto industry has great implications for the cryptocurrency market.

The successful listing was a victory for the entire market, as it became a kind of marker of approval and support for the sector from traditional finance. For the industry as a whole, the Coinbase IPO looks like the consent of regulators to work with crypto assets in the legal field. In addition, Coinbase's decision had a positive impact on other market players, for example, Kraken announced its decision to go public in 2022.

2. Binance ban in the UK and Europe 

For a very long time, we have heard the position of large traders that although Binance is not a regulated exchange and does not follow the rules of the game, “it is too big a player in the market for anything to happen to it”. However, recent events have shown the opposite. The consistent ban of the exchange in Europe and the introduction of mandatory KYC showed that we have finally come out of the Wild West stage and entered the regulated world (albeit, of course, not ideal yet, but it's a start).

3. The emergence of Bitcoin ETFs 

The Bitcoin Strategy ETF is the first U.S. exchange-traded fund based on bitcoin futures from the Chicago Mercantile Exchange (CME Group) and approved by the Securities and Exchange Commission (SEC). The Bitcoin Strategy ETF started trading on 19th October 2021 on the New York Stock Exchange (NYSE). The event attracted a record amount of institutional capital: the firm that launched the Bitcoin futures ETF (BITO) filed an application with the CME to remove restrictions on the maximum amount of contracts to buy.

Of the most anticipated events in 2022,

I would name this to be Ethereum's transition to the PoS model, which will take place until mid-2022. The transition means that the Ethereum Mainnet system will merge with the new Beacon Chain. I think this will be a huge boost for the entire market.

Introduction of a unified European regulation and travel rules for cryptocurrencies - I think this event will be an incredible boost for the entire market, as institutionalists can finally breathe easy knowing that their cryptocurrency is safe and transactions are regulated by law since there is currently some amount of uncertainty, even when trading on the world's leading exchanges.

Certainty about stablecoins - This topic has been, and remains hot for the entire cryptocurrency market. States continue to see the threat and competition for CBDC in stablecoins, and Tether is still issuing new USDTs without distinct collateral. I think next year, we will see stablecoins coming out of the gray zone.

I am certain that the coming year will be packed with many interesting events and new ATHs.