Financial analyst expects "fireworks" for Bitcoin in 2021 as macro trends align

Bitcoin has undergone a strong rally over the past few days as buyers have returned to this market.

CryptoSlate market data indicates that Bitcoin is currently trading for $12,250, a price just shy of 10 percent higher than it was just a week ago.

Analysts think that the cryptocurrency has much further to rally as macroeconomic and geopolitical trends continue to align in favor of the growth of a decentralized and scarce digital asset.

Macroeconomic trends suggest Bitcoin will see fireworks in 2021.

Rew Kang, the founder of the DeFi-focused crypto fund Mechanism Capital, recently stated that the "Backdrop for institutional adoption of Bitcoin" is stronger than ever before.

Yields are low, meaning the opportunity cost of owning Bitcoin goes down.

Institutional investors are taking notice of this trend and we've begun to see a mass accumulation of Bitcoin by institutional players.

This began earlier this year when Paul Tudor Jones, a billionaire Wall Street investor, said that he sees much value in Bitcoin amid macroeconomic turmoil.

MicroStrategy purchased $425 million worth of bitcoin over the past few months.

Stone Ridge Asset Management, a $10 billion asset manager, recently purchased 10,000 Bitcoin after it received strong interest in the coin from its staff and its clients.