Professional consulting firm PwC found that cryptocurrency mergers and acquisitions (M&A) hit a new high in 2020. It predicts this figure will be easily surpassed in 2021.
Professional services firm PricewaterhouseCoopers (PwC) published a report on the cryptocurrency market earlier this week, noting that mergers and acquisitions in the crypto market have hit new highs.
First reported by Bloomberg, the report states that the amount of investment activity is likely to rise even further.
Crypto Investment Boom
Furthermore, it claims that this will be supported by institutional investments. It noted that the average deal size rose from $19.2 million to $52.7 million. The value of mergers and acquisitions more than doubled to $1.1 billion between 2019 and 2020.
Henri Arslanian, PwC global crypto leader, said that this trend would likely continue in 2021. He noted that this year is “already on track to significantly surpass  from every single metric.”
Perhaps more interestingly, PwC remarks that institutional cryptocurrency investments will continue to pour in. This would help stabilize the market and, in turn, draw in more retail investors.
Such events and developments are lending some credence to the price targets put forward by firms like JPMorgan Chase and Citibank. The former is eyeing $146,000, while the latter thinks that $318,000 is realistic by 2023.
PwC published a report in October 2020 stating that blockchain technology could boost the global GDP by $1.76 trillion by 2030.
MicroStrategy, Tesla, and Square Lifting Bitcoin
The likes of Microstrategy, Tesla, and Square investing billions into Bitcoin has helped drive cryptocurrency assets forward. Many are investing in the “digital gold” because they believe it’s a safer investment than cash. This has caused a domino effect, giving smaller firms the confidence to join in.
This bullish sentiment has helped Bitcoin reach a current all-time high just short of $62,000. This is a figure that would have been unthinkable by most traditional finance firms last year. While Bitcoin seems to be discovering a support level in the mid-$50,000 range, the optimism is palpable.