There’s no doubt that Bitcoin is one of the most valuable assets in the modern-day investment market, with a real-time market capitalisation value of just over $1 trillion.
However, this is also one of the most volatile entities in the marketplace, with its price having undergone seismic fluctuations throughout 2021, enduring numerous peaks and troughs in the process.
In this post, we’ll chart the performance of BTC through 2021 so far, while asking what this means for the cryptocurrency market as a whole.
The Price of BTC Through 2021
Bitcoin embarked on its most recent bull run towards the end of 2020, with the asset experiencing huge demand in the wake of the coronavirus thanks to its relative resistance to macroeconomic factors.
After breaking through the coveted $20,000 barrier in December of last year, the Bitcoin price had reached $29,374.15 by New Years’ Day, before embarking on an incredible run that saw the asset’s value almost double over the course of the next nine weeks (to $57,332.09 in the second week of March).
Bitcoin effectively peaked at a whopping $63,503.46 on April 13th, but this precipitated a sudden and unexpected collapse as market sentiment dwindled and several high profile investors (including Bill Gates and Elon Musk) were critical of the asset.
To this end, the BTC price had shelved more than half of its value by July 20th, slumping to $29,807.35 as demand continued to dwindle.
However, this bear run has since been reversed, will Elon Musk has made more favorable comments about BTC’s sustainability and demand returned to more acceptable levels.
Steady growth has followed throughout the third quarter so far, with BTC hitting a four-month high of $52,633.54 on September 6th before settling at the $47,853.25 mark when the markets opened most recently.
What Exactly Does This Mean for Investors?
As anyone who invests in international currencies will know, the USD represents the benchmark for similar assets in the world of forex trading.
BTC fulfills the same role in the cryptocurrency market, as it continues to set the trend for other assets to follow in real-time.
This is also borne out by the numbers, which highlight that Ethereum (Ether) has also enjoyed a recent spike in line with Bitcoin, achieving a valuation of almost $4,000 according to the most recent figures.
However, Ether has also seen a big jump, now worth almost $4000. If you could talk about the recent volatility and some potential causes that are behind it.
Unsurprisingly, this is increasing demand amongst investors, with BTC’s biggest holders (who are commonly referred to as whales) appearing to up their positions as the asset’s price continues to rebound.
Certainly, crypto accounts holding roughly $50 million or more worth of Bitcoin have steadily increased their buying since June, with this trend showing no sign of abating anytime soon.