The 2021 for Bitcoin

Aug 31, 2021

The 2021 for Bitcoin

2021 seemed to be a rocket year for cryptocurrencies including the world’s most valuable cryptocurrency Bitcoin to trade as high as $41,973 for the first time in January 2021 which was 40% up. This was due to the fact that investors viewed cryptocurrency as an inflation Hedge.

February was a record breaking month for Bitcoin as the price jumped above $58,000. This was the time when Tesla announced it invested $1.5 Billion in bitcoin and Mastercard announced that it will allow some cutomers to use bitcoin on it network. Also, with Microstrategy embracing 71,000 bitcoins owned the market capitilization of bitcoin rose close to 1 trillion.

Institutional investments led the bitcoin prices to rise up to 61,683 in March and the prices of bitcoin doubled in April 2021 compared to the start of year reaching its peak beyond $64,000.

On July 22, 2021 posted a Job opening for a digital currency block chain product lead. Which raised questions on whether retail giant Amazon on accepting Bitcoin as a method of payment. This Amazon job posting lead Bitcoin prices to rise past 40,000 for the first time since June 2021.

Trading volumes at the largest exchanges, including Bitcoin fell more than 40% in June, according to data from crypto market data provider CryptoCompare, which cited lower prices and lower volatility as the reason for the drop.

In June the price of bitcoin hit a monthly low of $28,908, according to the report, and ended the month down 6%. A daily volume maximum of $138.2 billion on June 22 was down 42.3% from the intra-month high in May.

The report pointed to China as a major catalyst, according to Reuters, which reported earlier. China’s latest of many efforts over the years to crack down on the industry have had a greater impact than ever before. Investors and experts in the cryptocurrency ecosystem still see a long-term positive trend for bitcoin and other cryptocurrencies, however.

“The digital asset ecosystem got punched in the face, so it’s currently up against the ropes versus fighting in the middle of the ring. Typically when you have large sell-offs, participants are quite fearful and pull back their chips.”