Preface
The Bitcoin price has fluctuated over the years, mainly because of investor enthusiasm. Its most recent big jump, which was around $600 million, is a sign of investor disenchantment with the currency, but the long-term trend is upward. Whether the currency’s future is as bright as its hype is uncertain. It’s based on several factors, including consumer behavior and the growth of the cryptographic currency industry.
Cryptocurrency prices are a volatile market, which has led to massive price bubbles. Many investors have lost millions of dollars because of the lack of regulation in the cryptocurrency industry. Moreover, daily volatility is the norm in the cryptocurrency space, as a result of which the Bitcoin price often spikes and crashes dramatically. In February 2020, bitcoin reached a record high of $11,200, and it plummeted to below $4,000 in a matter of a few weeks.
After reaching a high of $64,000 in early March 2021, the cryptocurrency’s price dropped to $55,000. Its price hit new highs in March 2021, but fell to $42,500 in September and October. In December 2020, the cryptocurrency reached a low of $24,000, and in January 2021, it reached a record low of $6,000. By April 14th, 2021, the price of Bitcoin had surged to over $70,000.
Although the value of the cryptocurrency varies daily, analysts predict that it will continue to rise. However, the current Bitcoin price is far from unreliable, with the potential to crash dramatically at any time. In October, a new cryptocurrency called Ethereum took the limelight, and it quickly fell back as investors discovered its decentralized storage of value. As such, it is important to understand the role of the market in determining the future of the crypto currency.
The broader economic environment has impacted the Bitcoin price. As of early June, it surpassed its high of $30k, according to reports from the Bitcoin Project and Cnet. In July, a recent tweet from Tesla’s Elon Musk increased the price to more than $66,000. In addition, the market is seeing intense scrutiny from governments and regulators in various countries. The highest prices reached during the first half of 2017 were less than a quarter of what they are today.
In the past two years, the bitcoin price has fluctuated drastically. It reached a record high in mid-April and plunged to $30,000 by mid-July. Until this point, the currency’s value was dependent on speculators and retail investors. The recent increase does not mean that the Bitcoin price will continue to stay high. In the long term, though, the cryptocurrency may continue to experience major swings in the future.
Remarks
In October, the stock market saw its lowest level since November 2017. The collapse occurred after the first Bitcoin ETF on the NYSE was introduced. The crypto’s prices have risen in recent days due to these speculative signals. The last week, the bitcoin price reached a new all-time high above $4,800. In addition, the US’s stock market experienced a huge rally as a whole. But as of January 2018, the crypto’s value has continued to fall, which is a cause for concern.
