Bitcoin ends a lucrative year with a whimper | Crypto News

Bitcoin is ending its iconic year with a difficult ending.

In terms of market capitalization, the largest cryptocurrency will fall by 19% at the end of December, which is the largest monthly decline since May. This was also the worst December since 2013. It has risen by 59% in 2021, which is the smallest increase since the 36% rise in 2015. On Friday, the token fell 3.5% to $45,658.

However, after Bitcoin and the wider cryptocurrency world further promoted the mainstream in 2021 and attracted more attention from financial professionals and the general public, a year of its breakthrough has now been resolved. Those who observe Bitcoin’s daily volatility say that all this is taken for granted-Bitcoin is known for its volatility and this year proved to be as turbulent as any other year.

Chris Gaffney, president of TIAA Bank Global Markets, said in an interview: “We see more volatility.” “This is a speculative asset.”

Bitcoin has started to shine in 2021. As more and more investors-especially well-known Wall Street institutions-are interested in it as a speculative asset or a hedging tool to hedge against rising prices, Bitcoin quickly hit a new high. Other positive developments, including the launch of the first U.S. exchange-traded fund to track Bitcoin futures, also helped push Bitcoin higher throughout the year. According to data from research and consulting firm ETFGI, as of November, global investment in crypto exchange-traded products exceeded US$20 billion, a record high. The company said in a report that so far this year, assets have increased by about 550%, up from $3.1 billion at the end of last year.

“It’s an exciting factor to push Bitcoin above $20,000,’Gosh, it’s not just a bunch of kids. It’s real. Michael Purvis, CEO and founder of Tallbacken Capital Advisors ( Michael Purves) stated that institutions will strategically allocate Bitcoin because its supply is limited and will only continue to rise. “Bitcoin will require more things in the next stage of this embarrassing adolescence. “

Since hitting an all-time high of nearly $69,000 in early November, Bitcoin has gone through a difficult period. Analysts said that part of the reason was that it was hit by concerns about increased global regulatory review. But with the expansion of the crypto ecosystem this year, it is also losing the dominance of other lesser-known upstarts. Among the largest cryptocurrencies, Binance Coin has the highest rate of return, with an increase of approximately 1,300% in 2021.

Matt Maley, chief market strategist at Miller Tabak + Co., stated that Bitcoin’s year-end volatility may be the result of investors abandoning non-profit trading.

“Institutional investors like to increase their holdings of large stocks at the end of the year and shrink (or in some cases, sell) losers,” he wrote in a report this week. “Well, guess what? This year, many institutional participants were late in the game of Bitcoin and other cryptocurrencies.”

Bitcoin’s earnings this year are still impressive, and its performance is not as bad as it did when it fell in the past. Its 30% drop from its high is not as dramatic as other downturns it has experienced. According to data from Bespoke Investment Group, the record average drop is about 46%. Bitcoin’s mid-year correction was even worse, with Bitcoin falling by more than 50% at its lowest point.

(Bloomberg)

Looking ahead, many investors-in the classic “crypto-to-moon” approach-expect prices to rebound and eventually reach new highs. The violent volatility of the market shows that it can go either way.

“We expect Bitcoin to continue to perform well. Martin Gaspar and Katherine Webb of CrossTower Research wrote: “Tailwind includes continued inflation and continuous education as well as wider investor adoption in the broader macro environment. “Investors are increasingly aware of the unique added value of Bitcoin. As long as it continues to buzz, we believe that prices will follow. “



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