The Cryptocurrency market witnessed a wide advocacy and price action in 2021. The prices of major & prominent cryptocurrencies have extensively mounted up since the very beginning of 2021. Even the bearish trend could not stand as a barrier to the massive increase of Bitcoin Price.
Bitcoin Imparts Above 70% to its Value in 2021
With 2021 coming to an end, Bitcoin is still one of the most superior & authoritative cryptocurrencies globally. If one surveys the past 52 years’ data, the cryptocurrency market value has increased massively, exceeding many principal financial assets like Gold.
Bitcoin price mounts by 72% in 52 weeks. $32K per coin stands as the initial bidding price of Bitcoin in 2021. Soon after, it exceeded its 2017 all-time high trading price worth $20,000 at the beginning of 2021. The dominating cryptocurrency market continued to rise in the coming months of 2021. By April 2021, the price of Bitcoin reached a new all-time high above $64k.
Many corporate firms and organizations entered the crypto space. This helped in the rally of cryptocurrency. The Bitcoin price went further higher when Tesla announced accepting Bitcoin as a means of payment for its electric vehicles. Moreover, MicroStrategy invested more in bitcoins, and El Salvador made its mind to approve Bitcoin as an authorized tender.
Having said that, the Bitcoin price collapsed at the end of May, which continued till September. The Cryptocurrency market witnessed low yield due to China banned cryptocurrency-related schemes.
Many sectors of China banned cryptocurrency mining activities which adversely affected the Bitcoin price. China contributed a majority of Bitcoin’s mining tax. So, Bitcoin’s mining has performed poorly because of the crypto mining ban. Bitcoin price suffered a loss of above 50% of its value. Finally, in July 2021, its price dropped by the $30k level.
Elon Musk’s strike on Bitcoin also proved as a contribution towards the ungainly production. Owing to environmental concerns & energy utilization for BTC mining, Tesla terminated its Bitcoin payment.
By September, there was a rebound in Bitcoin price soon after the miners moved to Europe and North America. Gradually, Bitcoin climbed to reach a new all-time high at $69,044 in November. During the latter half of 2021, the total cryptocurrency market cap reached a new all-time high of $3 trillion. Institutional investors showed an increased interest in the crypto space, which helped push the market higher.
At present, Bitcoin is down by nearly 30% from its all-time high. Now, Bitcoin is trading around $50k per coin. This downfall causes Chinese traders to sell their bitcoins.
What will the Market Hold in 2022?
We can foresee 2022 bringing further growth to the cryptocurrency market, particularly Bitcoin. Jack Dorsey announced his termination from his Twitter CEO’s post, thereby changing Square’s name to Block in a bid. He says, “I’m focused on developing products linked to Bitcoin.”
As per the market experts, BTC price prediction is expected to be high in 2022. Vijay Ayyar – the vice president at crypto exchange Luno, says he’s optimistic about the United States seeing the first spot Bitcoin exchange-traded fund (ETF) in 2022.
He claimed, “The Bitcoin Futures ETF instigated in 2021 is considered as a retail-friendly asset. It renders high costs which amount to around 5-10%. Currently, the market is huge and mature, so it can support one. Also, the increasing pressure/evidence hints at a Bitcoin Spot ETF being approved in 2022.”
Grayscale reported that it’ll soon transform its Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin ETF. Eying this document/report, many expect the SEC to approve at least one proposal by the beginning of 2022.
New York’s licensed public accountant – Kate Waltman is a specialist in crypto. He predicts Bitcoin price to reach $100,000 by the 1st half of 2022. She claimed, “The well-educated specialists in the space are expecting $100,000 Bitcoin in Q1 2022 or sooner.”
Practical Forecast: Bitcoin in 2022
Currently, Bitcoin’s technical indicators are negative. The primary reason behind this negativity could be the coin’s underperformance in the last few weeks. The MACD line is even now within the bearish region, & the RSI of 46 portrays that Bitcoin undergoes selling pressure in the cryptocurrency market.
Nevertheless, the long-term indicators predict Bitcoin performance to be fairly well. At present, BTC is trading above its 200-day at $47,272. Hence, BTC is expected to perform better in the coming months of 2022. Let’s hope for the best! It’ll be exciting to see how Bitcoin performs in the coming year.
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