Last year was very bad and then exceptional for the first cryptocurrency that appeared in the world more than a decade ago. Why we are saying this? We all remember how the rates were too low in March and April 2020, and that was followed by the most important blockchain event, named halving, and then, the values were rising, without any huge ups and downs through the time. As we all know, Bitcoin is “fighting” against the dollar dominance, trying to be the best and most stable cryptocurrency there. In January and February, no one could ever imagine that the times that will change history are coming. At the very beginning of 2020, many of the financial experts were asking if fiat money will still be the main currency people are using. Another important question was also is the world ready to embrace the cryptocurrencies completely, knowing that the US dollar, EU euro, and GB pound are “shaking” the whole planet.
The Bitcoin was and still is considered as a safe-haven currency, that people are comparing to gold. At the beginning of the previous year, its worth was growing little by little, and some people were predicting that after the halving, it will hit an all-time peak worth $90,000 per one coin. But, we all know what happened next – in the middle of March the coronavirus pandemic took over the whole world, together with the people, industries, and important sectors in the economy. And then, the Bitcoin’s fall happened – in March, at some point, it was worth around $5,100 and the investors and miners had a lot of reasons to be scared, but also to buy them, hoping that soon the value will rise, and they can make some profit of it.
As the crisis was still present in every possible sector, there was no hope for the cryptocurrencies to rise. During the summer, the rates were stable, and crypto money became a hot topic all around the world. A lot more people showed some interest in investing and even mining these coins by themselves, reading a lot of related articles, and joining trading and exchanging services, to see what is happening, and how they can make a profit. The summer of 2020 was good for those trading services, even though the rates were particularly frozen. Are you interested to get to know this market better?
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Once you understand these things, you will understand the whole market, including what is mining, investing, exchanging, and trading, or on what the Bitcoin depends.
But, can this knowledge help us predict how will this year be for Bitcoin, or every other cryptocurrency available on the market?
We surely can say that there is nothing that can help us to predict that. Knowing that the previous year was a whole mess, but at the very end it was pretty good, can we say that the same trend will continue through the whole year, hoping for high rates? Let’s see how it was going in recent months.
The winter of 2020-2021
Since the summer was stable, and there was some price spike in the autumn, this popular cryptocurrency jumped from around $10,000 to $20,000 – which was the then-known highest rate. As the situation in the world was becoming more clear, and the “unexpected expectations” finally came – at the end of the year this currency was worth $28,990 on 31 December, and 10 days later, on 9 January 2021, it reached the highest price ever in the history, something above $40,000 per one Bitcoin. That’s the current peak, and we can’t let that go, without asking ourselves, will there be better times in 2021 for this currency?
So, will Bitcoin continue to rise in 2021? The trends say it would, and some predictions say that it will overcome $100,000 by the end of the year. The enthusiasts think that there is hope for this cryptocurrency to reach some rate close to $300,000 (or something a little less than that). But, is that possible? Theoretically, it is, if there is nothing that will stop the free rising. But, if we follow previous major events, we will see that since the last peak in 2017, there were no ideal times for the blockchain.
According to the experts, no one can establish a strong prediction about how will things go during January or the next month. Some of them say that this peak, on 9 January, will be the highest in 2021, and after that, the price will be stable throughout the whole year. At the same time, there are those who are hoping for an exceptional period for the whole crypto market, including the less popular currencies. But, there is one thing that we can’t deny – the crypto gold reputation is stronger than ever before. At the same time, there will still be those who are highly interested in it and an almost equal number of people who are skeptical and suspicious. There is a small portion of the population that doesn’t have an opinion on this, and they are still into cash, thinking that it’s always better to hold your money in the hands, than in some virtual asset.
Even the crypto community is divided, and there are those who think that the only Bitcoin is worth investing in, and those who are ignoring it and invest in other cryptos, hoping for even better times for them. But, the fact is that since March, this popular cryptocurrency literally jumped from around $5,000 to more than $40,000 in less than a year, and that’s a really huge step.
As a result, many people have bug expectations, and since we are at the very beginning of the year, it’s too early to tell how things will go in the future. Also, we shouldn’t forget about the fact that no one ever predicted the Bitcoin trends and rates. So, we can only hope that this year won’t bring any changes to this market or the finance sector in general.