The bullish crypto-currency headline has been the most well-known in recent months, but the price of bitcoin is being watched more closely than the numbers. A new report published by Pricewaterhousecoopers (PWC) suggests that the number of mergers and acquisitions (M&A) in the cryptocurrency sector has increased significantly by 2020.
2021 is on track to exceed last year’s figures, according to PWC
According to Bloomberg, the consultancy noted that the crypto M&A space more than doubled last year to $1.1 billion in 2019. Geographically, the United States continues to lead the way with approximately $785 million in transactions from the region.
Yet Europe and Asia combined, as well as the EMEA region, received $303 million in cryptocurrency M&A, PWC said in a report.
Henri Arslanian, Global Cryptolender at PWC, pointed out that the 2020 figures represent a record year for the sector. However, he added that 2021 is poised to vastly outshine him in every way.
The results of the study suggest that the cryptocurrency market is continuing to expand, confirming a broad consensus among major investors around the world. Moreover, PWC suggests that the cryptocurrency industry will eventually become more institutionalized.
The company backs up its claims with steady increases in the price of bitcoin (BTC) worldwide this year, crossing the $60,000 mark.
In addition, PWC believes that the hubbub surrounding central bank digital currencies (CBCs), stablecoins and non-discretionary tokens (NFTs) has helped drive these transactions.
remove doomsday predictions for mid-2020
Interestingly, the report is quite optimistic compared to the one the company released in mid-2020. During this period, cryptocurrency mergers and acquisitions fell from $1.9 billion (2018) to $451 million (2019).
Moreover, Arslan was pessimistic PWC in his 2020 forecast, citing the coronavirus pandemic as a key catalyst to awaken the next wave of red ink associated with crypto transactions:
The cryptocurrency industry is not immune to global headwinds, and the number and value of cryptocurrency fundraisers and mergers and acquisitions may suffer in 2020.
What do you think of PWC’s study on cryptocurrency mergers and acquisitions? Let us know your comments in the section below.
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frequently asked questions
Which crypto currency will explode in 2020?
According to analysts, there are several cryptocurrencies (which are actually user favorites) that could explode in the coming year. They believe Ethereum, Polkadot, Chain Link and Monero are growing. Bitcoin is one of the cryptocurrencies that will also explode.
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You can earn cryptocurrencies by mining without investing money. Bitcoin miners receive bitcoins as a reward for completing verified transaction blocks that are added to the blockchain.
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