The cryptocurrency market began with a bull run in 2021, with bitcoin claiming an all-time high of $40,000 on Thursday, 7th Jan 2021. As the dominant digital currency rose to the new high, the entire cryptocurrency market value passed $1 trillion for the first time.
According to Fastrading experts, bitcoin has been more than 30% up in the last few days of 2021 and about 400% up over the previous 12 months. And by hitting these high records, there are chances that the cryptocurrency is going for the $100,000 to $200,000 range in coming years.
Bitcoin is the most dominant digital currency in the world with over $700 billion market value. And whenever bitcoin claims a new price spot, other digital currencies such as ether, ripple, tether, etc., move in the same direction and jointly increase the cryptocurrency market value.
What is responsible for bitcoin price appreciation in 2021?
Fastrading experts discussed the several factors that are responsible for the cryptocurrency’s price resurgence. These include; more adoption as payment options by users, increased purchase from big institutional investors, and some financial announcements from big companies such as Fidelity and PayPal to make crypto accessible to their users. Another reason is that most investors have lost credibility in our leaders; hence, many have decided to use digital cryptocurrency as insurance or a hedge against inflation.
Bitcoin is mainly believed to be the “digital gold” that can do better than fiats against inflation. For this particular reason, many believe bitcoin can compete with gold as an alternative currency in terms of value and worth. However, several bitcoin critics say the bitcoin volatility might be a hurdle to scale before this could happen.
According to Fastrading experts, many retail investors are already looking into diversifying the cryptocurrency space as bitcoin gains more popularity in 2021. And as the digital coin continues to get more exposure and investors, the more the price keeps appreciating. The world remains on the lookout as bitcoin fully transitions to a consensus trade.