These are the 10 best-performing cryptocurrencies so far in 2021 – and one is up more than 8,000%

NYSE trader worried
  • Cryptocurrencies have been on a tear so far in 2021, with bitcoin up more than 100% year-to-date.
  • The Coinbase direct listing, the appointment of crypto-friendly Gary Gensler as SEC chairman, and celebrity endorsements have all helped foster a bullish environment for the digital coins.
  • Listed below are the 10 top performing cryptocurrencies so far in 2021 – one of which is up more than 8,000%.
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Cryptocurrencies have been all the rage in 2021, with bitcoin up more than 100% year-to-date as a bullish backdrop pushes the digital coin higher.

The bullish environment in crypto has been spurred by a number of factors, including the public trading debut of Coinbase, which was briefly valued at more than $100 billion, and the appointment of crypto-friendly Gary Gensler as SEC chairman.

Celebrity endorsements of certain cryptocurrencies have also helped boost the price of certain coins, with Tesla CEO Elon Musk and Food Network TV host Guy Fieri tweeting support for Dogecoin, a meme-inspired cryptocurrency that was started as a joke in 2013.

Government stimulus checks and easy monetary policy from the Fed have also likely contributed to the spectacular rise in cryptocurrencies this year, as investors continue to seek out investment opportunities based on their risk profile.

Whether the strong performance will last remains to be seen, but for now, it’s hard to look away.

Listed below are the top 10 performing cryptocurrencies with a market valuation of more than $5 billion so far in 2021 – one of which is up more than 8,000%.

10. Filecoin

Ticker: FIL
YTD Performance: 657%
Market value: $12 billion

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9. IOTA

Ticker: IOT
YTD Performance: 686%
Market value: $7 billion

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8. Cardano

Ticker: ADA
YTD Performance: 703%
Market value: $46 billion

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7. VeChain

Ticker: VET
YTD Performance: 804%
Market value: $13 billion

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6. FTX Token

Ticker: FTT
YTD Performance: 830%
Market value: $5 billion

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5. Binance Coin

Ticker: BNB
YTD Performance: 1,260%
Market value: $79 billion

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4. Solana

Ticker: SOL
YTD Performance: 1,602%
Market value: $7 billion

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3. Terra

Ticker: LUNA
YTD Performance: 2,348%
Market value: $6 billion

terrrr.JPG

2. BitTorrent

Ticker: BTT
YTD Performance: 2,500%
Market value: $5 billion

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1. Dogecoin

Ticker: DOGE
YTD Performance: 8,039%
Market value: $45 billion

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*Pricing data is as of Friday afternoon and sourced from YCharts.

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Bitcoin tumbles 5% from record highs amid Turkey’s crypto-payments ban starting April 30

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Bitcoin slipped as much as 5% from record highs on Friday after amid reports that Turkey’s central bank will bar the use of cryptocurrencies as a method of payment starting April 30. The move stoked fears that other nations may follow suit.

Bitcoin tumbled 5.3%, to $60,062.71, at intraday lows. Altcoins such as ether and XRP also slipped as they typically move in lockstep with the world’s biggest cryptocurrency.

Turkey’s central bank on Friday said crypto assets entail significant risks, citing four reasons: lack of regulatory oversight, volatility of market valuation, possible use for illegal transactions, and the fact that these transactions are irrevocable.

“It is considered that their use in payments may cause non-recoverable losses for the parties to the transactions due to the above-listed factors,” the bank said in a statement. “And they include elements that may undermine the confidence in methods and instruments used currently in payments.”

David Wachsman, founder and CEO of Wachsman – a global strategy firm that specializes in cryptocurrency and blockchain – said Turkey’s move to ban crypto payments impacts bitcoin primarily from a macroeconomic investment perspective.

“It implies that other countries might follow suit if they see bitcoin or other cryptocurrencies as a threat,” he said. “Moreover, Turkey on its own has had a surprising and burgeoning crypto scene over the last few years, so the fact that 82 million people may have reduced access to bitcoin is a blow in and of itself.”

Read more: Bitcoin is a headache to store, and that’s created an investment opportunity that could theoretically pay determined traders big risk-free returns by December

Cryptocurrencies have picked up steam in Turkey in the past weeks as investors sought various hedges against the unstable lira. Just this week, the company that distributes Rolls-Royce in Turkey – Royal Motors – became the first business in the country to accept payments in cryptocurrencies, Reuters first reported.

In March, the country’s currency found itself in turmoil after the dismissal of Naci Agbal, Turkey’s central bank chief, which took many by surprise. The lira tumbled 14% to a near all-time low following the news.

But Viktor Prokopenya, a London-based Fintech investor, said the move of Turkey was not surprising.

“Turkey is a very centralized and authoritarian state, which has very little desire to make decentralized technologies,” he said. “Having said that, the stance of governments changes all the time towards crypto, but the individual opinions of small countries don’t matter that much. The biggest risk to crypto comes from US regulators.”

Bitcoin this week hit record highs, inching close to $65,000, ahead of excitement over Coinbase’s listing on the Nasdaq, signifying a milestone for the broader digital currency ecosystem.

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A decline in bitcoin’s volatility makes it more attractive to institutions and supports a $130,000 long-term price target, JPMorgan says

A visual representation of the digital Cryptocurrency, Bitcoin is on display in front of the Bitcoin course's graph
A visual representation of the digital Cryptocurrency, Bitcoin is on display in front of the Bitcoin course’s graph.

  • A recent decline in bitcoin’s volatility could boost its adoption by institutions as a low-correlation asset that helps diversify investment portfolios, according to JPMorgan.
  • If bitcoin continues to see its volatility converge with gold’s volatility, it would fetch a long-term price target of $130,000, JPMorgan said in a note on Thursday.
  • “Mechanically, the bitcoin price would have to rise [to] $130,000, to match the total private sector investment in gold,” JPMorgan said.
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Bitcoin’s price volatility has been on the decline in recent weeks, making it more appealing to institutions that are seeking low-correlation assets to better diversify investment portfolios, JPMorgan said in a note on Thursday.

A boost in institutional adoption of bitcoin is “likely to arise from the recent change in the correlation structure of bitcoin relative to traditional asset classes,” the bank explained.

One of the biggest barriers to institutions adopting the cryptocurrency has been its markedly high volatility, which exploded in 2020 as bitcoin more than tripled. From a risk management point of view, high volatility “acts as a headwind towards further institutional adoption,” JPMorgan said.

Now, there are signs that bitcoin’s volatility is normalizing, which would help “reinvigorate” interest by professional investors to include the cryptocurrency in its asset allocations.

One asset that’s negatively impacted from bitcoin’s growing favor with institutions is gold, which has seen $20 billion in fund outflows since mid-October, compared to $7 billion in bitcoin fund inflows over that same time period, according to the bank.

“Considering how big the financial investment into gold is, any such crowding out of gold as an ‘alternative’ currency implies big upside for bitcoin over the long term,” JPMorgan said.

That upside includes a long-term price target of $130,000, which represents potential upside of 121% from current levels.

“Mechanically, the bitcoin price would have to rise [to] $130,000, to match the total private sector investment in gold,” JPMorgan said, based on the current price of gold of $1,700 per troy ounce. JPMorgan previously had a $146,000 long-term price target for bitcoin, but that fell as gold’s price has recently fallen from a peak of $1,900 per troy ounce.

“The decline in the gold price since then has mechanically reduced the estimated upside potential for bitcoin as a digital alternative to traditional gold, assuming an equalization with the portfolio weight of gold,” the bank explained.

JPMorgan’s long-term price target for bitcoin is predicated on the idea that bitcoin’s volatility will converge with gold’s. That’s still far off from happening, as the three-month realized volatility for bitcoin recently stood at 86%, versus just 16% for gold.

“A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is likely a multi-year process. This implies that the above $130,000 theoretical bitcoin price target should be considered as a long-term target,” JPMorgan said.

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Bitcoin falls 4% after Biden nominee Gary Gensler says SEC will seek to eliminate fraud and manipulation in crypto markets

Gary Gensler
  • Bitcoin fell as much as 4% on Tuesday after SEC Chairman nominee Gary Gensler testified that he would seek to eliminate fraud and manipulation from crypto markets.
  • Gensler said that the investor protections the SEC seeks to enforce should ensure that crypto markets are “free of fraud and manipulation.”
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Bitcoin shed as much as 4% on Tuesday following Senate testimony from President Joe Biden’s nominee for Chairman of the Securities and Exchange Commission, Gary Gensler.

Gensler said that the SEC would seek to enforce investor protections in the crypto market, including ensuring that the custody of digital assets are safe and seeking to eliminate fraud and manipulation from cryptocurrency markets.

The SEC must ensure that crypto markets “are free of fraud and manipulation, and I think that’s the greater challenge, frankly, because some markets, usually operating overseas, have been rife with fraud,” Gensler said.

Bitcoin traded just below $50,000 Tuesday morning, before falling to $47,190 as of 2:15 p.m. Gensler has been viewed as an advocate for cryptocurrencies, given his past work and teachings on the subject at MIT. 

Despite the decline on Tuesday, bitcoin is still up more than 60% year-to-date.

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Bitcoin’s sell-off is ‘part of its DNA’ and could still surge to $100,000, Fundstrat’s Tom Lee says

Tom Lee
  • Bitcoin’s recent correction of more than 20% is “part of its DNA and its history,” Fundstrat’s Tom Lee said in a tweet on Tuesday.
  • Lee reiterated his $100,000 price target on bitcoin, arguing that the sell-off doesn’t change fair value.
  • Bitcoin “looks on sale,” Lee Tweeted.
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The more than 20% sell-off in bitcoin this week shouldn’t be a surprise to investors familiar with the cryptocurrency, according to Fundstrat’s Tom Lee.

In a tweet on Tuesday, Lee said bitcoin is prone to corrections of 40%-50%, adding that the sizable corrections are “part of its DNA and its history.”

After topping out at more than $58,000 over the weekend and eclipsing $1 trillion in market value, bitcoin sold-off to a low of $45,000 on Tuesday amid risk-off sentiment among investors due to concerns of rising interest rates.

But the decline in bitcoin “doesn’t change fair value” for the cryptocurrency, Lee said before reiterating his $100,000 price target. A surge in bitcoin to $100,000 would represent potential upside of 117% from Tuesday afternoon levels.

Lee’s price target for bitcoin is predicated on his view that 2021 represents a similar setup to 2017 for the cryptocurrency: a parabolic rally following a halvening event. A halvening in bitcoin is when the reward for miners completing problems on the bitcoin blockchain is cut in half. Bitcoin completed a halvening event last year.

“Looks on sale, right?” Lee asked. 

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Bitcoin falls 11% after report suggests a critical flaw in the cryptocurrency called ‘double spend’ may have occurred

NYSE trader worried
  • Bitcoin fell as much as 11% on Thursday after a report from BitMEX Research suggested that a critical flaw called “double spend” had occurred in the Bitcoin blockchain.
  • Double spend is a highly feared scenario where a user is able to spend their bitcoins more than once.
  • Ultimately, a double-spend event did not actually occur, according to the CTO of Bitfinex.
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Bitcoin fell as much as 11% on Thursday, hitting its lowest level in nearly three weeks, as the popular cryptocurrency was hit with a double whammy that jolted faith in its user base.

First, Janet Yellen, President Joe Biden’s nominee for treasury secretary, suggested during her confirmation hearing on Tuesday that lawmakers “curtail” the use of Bitcoin because of its use in illicit activities.

And second, a debunked report from BitMEX Research on Wednesday suggested that a critical flaw called “double spend” had occurred in the Bitcoin blockchain.

Double spend is when someone is able to spend the same bitcoin twice. It is a feared and dire scenario for the digital asset, and the blockchain was thought to have solved the issue when Satoshi Nakamoto published the Bitcoin white paper in 2009.

Early attempts to launch a digital cash system were ultimately halted by vulnerabilities that could have enabled double spending and undermined faith in the system.

BitMEX Research tweeted that “it appears as if a small double spend of around 0.00062063 BTC ($21) was detected.”

Read more: GOLDMAN SACHS: These 22 stocks still haven’t recovered to pre-pandemic levels – and are set to explode amid higher earnings in 2021 as the economy recovers

BitMEX later said it appeared that the double spend was actually an RBF transaction, which is when an unconfirmed bitcoin transaction is replaced with a new transfer paying a higher fee. But BitMEX’s Fork Monitor said that “no (RBF) fee bumps have been detected.”

BitMEX said in another tweet: “A transaction in the losing chain sent 0.00062063 BTC to the address 1D6aebVY5DbS1v7rNTnX2xeYcfWM3os1va, and a transaction in the winning chain which spent the same inputs only sent 0.00014499 BTC to this address.”

Ultimately, the double-spend event did not occur, according to Bitfinex CTO Paolo Ardoino. In an e-mail to Insider, Ardoino explained, “In fact, what happened is that two blocks were mined simultaneously. As a consequence, there was a chain reorganization, which did not result in double-spending.”

Meanwhile, institutional investors continue to gain exposure to bitcoin. Filings with the Securities and Exchange Commission on Wednesday said BlackRock had enabled two of its mutual funds to invest in the cryptocurrency.

Read more: We spoke to the Winklevoss-backed crypto platform Gemini about Bitcoin, how to use stable coins, and why regulation won’t kill the boom in digital currencies

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Bitcoin closes in on $40,000 as bulls flood in again and ECB boss Christine Lagarde labels cryptocurrencies a ‘funny business’

bitcoin
The Bitcoin price has soared more than 330% in just a year

  • Bitcoin price rises 9% to cross $38,000 mark, putting $40,000 in sight
  • ECB boss Christine Lagarde yesterday called for more regulation of the ‘funny business’
  • Morgan Stanley analysts say Bitcoin focus ‘unsurprising’ given low bond yields

The Bitcoin price rose sharply once again on Wednesday evening and Thursday morning, climbing past the $38,000 mark, as European Central Bank president Christine Lagarde labelled cryptocurrencies a “funny business”.

It has been a volatile few weeks for Bitcoin, with the price hitting an all-time high of close to $42,000 last week before dropping back. The price has consistently swung around 10% a day as investors buy in and cash out of the cryptocurrency, which has surged more than 330% in a year.

Bitcoin was up sharply on Thursday morning, climbing 8.7% over a 24 hour period to $38,132 by 6.35am ET (11.35am GMT). Its smaller rival Ethereum rose 7.2% over 24 hours to $1,160.

Read more: Morgan Stanley says to buy these 26 economically sensitive stocks poised to outperform as oil prices spike 10% by year-end

The dramatic rise in the price of Bitcoin and other cryptocurrencies has sharply divided market opinion, pitting much – although not all – of the financial establishment against a new breed of online investor.

On Wednesday, ECB boss Lagarde said Bitcoin needs to be regulated on a global level and linked it to “totally reprehensible money laundering”.

She said Bitcoin is not a currency, as many of its proponents argue, but a “highly speculative asset which has conducted some funny business”.

Bambos Tsiattalou, a financial crime lawyer at London’s Stokoe Partnership Solicitors, said tighter regulation would be a major problem for cryptocurrencies.

“Many people buy Bitcoin and other cryptocurrencies because they are worried about and don’t trust fiat currencies,” so greater regulation would demolish much of their appeal, he said.

Read more: Corporations rushed to address the Capitol riot and political donations. Here’s how those moves reflect the rise of sustainable investing.

Yet despite raised eyebrows from regulators and central banks, the soaring price has caused some institutional investors to buy in.

Analysts at Morgan Stanley said in a note: “With the large decline in the dollar, deeply negative real yields and continued policy uncertainty, investors have been looking for alternatives to traditional cash holdings.”

They added: “Innovation in digital assets continues rapidly and will likely drive increased
institutional participation over time.”

Yet the analysts cautioned that “the perception of ‘value’ and demand can vary materially, for example due to changing regulations”.

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Billionaire ‘Bond King’ Jeff Gundlach says bitcoin appears to be in ‘bubble territory’

FILE PHOTO: Jeffrey Gundlach, Chief Executive Officer, DoubleLine Capital LP., speaks at the Sohn Investment Conference in New York City, U.S. May 4, 2016.  REUTERS/Brendan McDermid
FILE PHOTO: Jeffrey Gundlach, Chief Executive Officer, DoubleLine Capital, speaks at the Sohn Investment Conference in New York

  • “Bond King” Jeffrey Gundlach told CNBC on Monday bitcoin hit “bubble territory” once it passed $23,000, and he doesn’t feel comfortable with the coin’s current levels. 
  • “I don’t like bitcoin here, I don’t like things that are up on a stilt like that,” the DoubleLine Capital founder said of the coin that rallied nearly 300% in 2020. He added that he’s “neutral” on bitcoin.
  • Bitcoin fell as much as 13% on Monday to $30,558. It’s lost over $10,000 in value since hitting a record above $41,000 last week, but the coin is still up nearly 89% in the last month.
  • Watch bitcoin trade live here.

“Bond King” Jeffrey Gundlach told CNBC on Monday bitcoin hit “bubble territory” once it passed $23,000, and he doesn’t feel comfortable with the coin’s current levels.

“I don’t like bitcoin here, I don’t like things that are up on a stilt like that,” the DoubleLine Capital founder said of the coin that rallied nearly 300% in 2020.

Bitcoin fell as much as 20% on Monday, to $30,324. While the coin has lost roughly $10,000 in value since hitting a record above $41,000 last week,it’s still up nearly 89% over the past month. Gundlach suggested bitcoin’s run-up has happened all too fast.

“People seem to be so much on one side of the boat that I just really don’t really believe the boat can sail that well, and I think that’s where bitcoin is on the bullish side right now,” he said. 

Read more: The CIO of a $500 million crypto asset manager breaks down 5 ways of valuing bitcoin and deciding whether to own it after the digital asset breached $40,000 for the first time

The investor added that bitcoin has a “terrific supply and demand dynamic” if institutions get involved. The total number of bitcoins that can ever be mined is 21 million, which means that the supply stays scarce even if demand grows. He’s insisted that he’s not a “bitcoin hater” and told CNBC he went neutral on bitcoin after it hit $23,000.

In a DoubleLine webcast in December, he said: “I’m not a bitcoin pro or con person. I’m not in the cult, and I’m not in the anti-bitcoin cult. I just look at it as a fascinating representation of animal spirits and speculation.”

Earlier, in a RealVision interview from Oct 1, Gundlach said he “didn’t believe in bitcoin.”

“I think that it’s a lie,” he said. “I think that it’s very tracked, traceable. I don’t think it’s anonymous.” Gundlach later added that he was “not at all a bitcoin hater.”

Read more: Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end

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