Bitcoin-Prices Have Dropped - itcoin, on the other hand, has been steadily returning to the bullish mode, particularly during the long rally that began in mid-July. This good trend is also being driven by an increase in demand from retail and agency investors. The Bitcoin price then reached the 50.000-Dollar mark for the first time since May 2021, marking a historic milestone.
Why Bitcoin-Prices Have Dropped ?
The most recent data from CoinMarketCap indicate that the total market capitalization of Bitcoin is over 950 billion US dollars, which is a significant increase from the previous figure of 550 billion US dollars in June of this year. According to the current market conditions, Bitcoin has a 43,8 percent market share in the cryptocurrency exchange market.
In addition to Bitcoin, several other cryptocurrencies have seen significant increases in value during the last 24 hours. Cardano is one that stands out as being very interesting (ADA). The cryptocurrency was traded at a lifetime high of $2.80 USD, setting a new record. In addition, the prices of cryptocurrencies such as Ethereum, BNB, XRP, and DOGE have increased in the previous 24 hours.
The Bitcoin Network's activities and agents are detailed below.
Following the continued rise in the value of Bitcoin and other digital currencies over the past several months, Bybt has seen an increase in the number of cryptocurrency liquidations. According to him, over 150 million US dollars' worth of cryptocurrency shorts were liquidated in the last 24 hours. With regard to this sum, BTC came up just short by 80 million United States Dollars.
The Bitcoin Network's activities and agents are detailed below.
In terms of acceptance and pricing, 2021 has been a great year for cryptocurrencies in general. Despite the current downward trend, the values of most cryptocurrencies have surged since January.
Is Bitcoin the World's Most Valuable Cryptocurrency? During the last 52 weeks, the cryptocurrency has outperformed other financial assets like Gold.
Bitcoin's price has increased by 72% in the previous 52 weeks. After hitting a new all-time high of $20,000 in late 2020, Bitcoin resumed trading around $32k in early 2021.. In April 2021, Bitcoin hit a new all-time high of almost $64,000, continuing its 2020 rise.
The rise occurred as bitcoin usage grew. More businesses entering the crypto market helped boost prices. A law to make Bitcoin legal money was being prepared in El Salvador.
Investors propelled Bitcoin to a fresh all-time high of $64,000. It underperformed from May to September. The bad result was mostly due to China's crypto prohibition.
Various Chinese provinces banned cryptocurrency mining. Bitcoin mining hash rate was dominated by China. As a consequence of the crypto mining prohibition, Bitcoin mining hash rate dropped dramatically. With almost 50% loss in value, Bitcoin's price fell below $30k in July.
The Chinese authorities went farther. A crypto-related transaction is illegal in China, according to the People's Bank of China (PBoC). Punishment for companies discovered conducting crypto-related transactions As a result, the Asian country's crypto trading operations were As a consequence, several cryptocurrency exchanges in China have shut down their services. Alibaba and Bitmain have also ceased selling crypto mining gear to Chinese citizens.
This was exacerbated by Elon Musk's assault on Bitcoin and its high energy use. For environmental reasons, Tesla terminated its Bitcoin payment mechanism.
Prices rose in September as miners shifted to Europe and North America. With the relocation of mining farms and individual miners to nations like the US, Kazakhstan, Iran, Canada, etc.
In September, El Salvador became the world's first nation to accept Bitcoin as payment. Bitcoin adoption in El Salvador is already paying off despite global financial agencies like the IMF's warnings.
A new all-time high of $69,044 was reached in November, with a $3 trillion cryptocurrency market worth. Institutional investors' increased demand for Bitcoin and the participation of additional corporations aided market growth.
However, Bitcoin is presently selling at $50,000 per coin, roughly 30% below its all-time high. As exchanges shut in China, dealers sell bitcoins to avoid losing money.
What Will 2022 Bring?
In 2022, the cryptocurrency sector, and Bitcoin in particular, are predicted to develop further. He quit Twitter as CEO and renamed Square Block to concentrate on Bitcoin-related goods. Experts expect Bitcoin will go better in 2022. Luno's vice president of corporate development and worldwide growth Vijay Ayyar believes the US will have the first Bitcoin ETF in 2022. In addition to the hefty expenses of rolling over contracts (about 5-10%), he stated the Bitcoin Futures ETF released this year is not particularly retail-friendly. The market is now big and developed enough to sustain a Bitcoin Spot ETF.”
There is hope that the SEC will approve at least one Grayscale Bitcoin Trust (GBTC) conversion to a Bitcoin ETF this year.
Bitcoin is expected to hit $100,000 in the first quarter of 2022, according to crypto-specialist CPA Kate Waltman of New York City. A $100,000 Bitcoin is predicted by experts in Q or sooner.
Bitcoin's 2022 Technical Forecast
Due to the coin's recent underperformance, Bitcoin's technical indications are now bearish. As of writing, the MACD line is still negative, and the RSI of 46 indicates that the market is selling Bitcoin.
Bitcoin has risen above its 200-day
However, long-term signs reveal Bitcoin to be profitable. Bitcoin is now trading at $47,272, above its 200-day SMA. Because Bitcoin is predicted to do better this year, the technical indications may improve.
As with the mining hash rate, the Chinese selling pressure should stop by January. It will then return to positive MACD and RSI. Bitcoin might finish 2022 trading over $80k, according to WalletInvestor's 2022 estimate.
The next year will be interesting to observe how Bitcoin performs.