The cryptocurrency space has been growing over the past year, and further growth is expected this year. The growth led to mergers and acquisitions (M&A), and more are expected to take place in the industry in 2021.
Crypto M&A will grow in 2021
Professional consulting firm PwC revealed that mergers and acquisitions in the cryptocurrency sector hit a new high last year, and the figure will be higher in 2021. According to the Bloomberg report, the cryptocurrency sector recorded $1.1 billion in M&A last year, with an average deal size of $52.7 million, up from $19.2 million in 2019.
PwC stated that it is optimistic that the deals this year would surpass that of 2020 and be supported by institutional investments. Henri Arslanian, PwC global crypto leader, pointed out that the strong growth recorded last year will extend into this year. He stated that 2021 is already on track to significantly surpass 2020 from every single metric.
According to PwC, the institutional investments in the cryptocurrency market will help stabilize it and attract more retail investors. This is already evident as several financial institutions such as JPMorgan, Citibank, and Morgan Stanley are making huge investments into the cryptocurrency space.
Most of these institutions believe Bitcoin’s price can surpass $100,000 over the next few years. PwC believes that blockchain technology could boost the global GDP by $1.76 trillion by 2030.
Tesla and others massively investing in Bitcoin
Publicly listed companies are some of the biggest Bitcoin investors. Tesla and MicroStrategy have invested billions of dollars each in Bitcoin. Tesla is leading the way in terms of Bitcoin adoption as it recently announced its decision to start accepting BTC as payment for its electric cars.
The leading cryptocurrency reached an all-time high above $62,000 a few weeks ago, and analysts believe it could surpass the $100,000 mark before the end of the year.