2021 can only be described as a great year, it is not easy to lose sight of the big picture that bitcoin has painted so far.
2021 will go down in history as one of the best years for Bitcoin.
The Big Picture:
Currently, many traders are disappointed by the recent price stagnation, with Bitcoin trading below $50K.
A look at the 7-day chart shows a decrease of about 6% while the 24-hour chart shows a gain of less than 1%.
Although Bitcoin is down 30% since hitting an all-time high of $69,000 last November, the community has a lot to be grateful for.
At the beginning of 2021, a wave of retail investors poured into the markets, benefiting from stimulus funds, giving institutions a chance to make their money.
With prices responding positively, things came to a head after Tesla revealed in February that it had added bitcoin to its balance sheet in a move that was huge.
Then companies such as Square, MasterCard, Visa and PayPal took steps to incorporate bitcoin as part of their offerings to investors in 2021.
Bitcoin rose to more than $60,000 in the second quarter before tragedy struck.
Bitcoin chaos followed after massive liquidations which led to the asset giving up a significant portion of its value.
The ban on cryptocurrency in China and the demonization of bitcoin mining by Elon Musk played a big role in the price index in May.
But despite that, Bitcoin absorbed the shock and moved on.
Miners escaping from China’s grip have found their feet in new jurisdictions such as America, Kazakhstan and Russia where hash rates quickly recovered.
In the wake of climate concerns, it appears that Bitcoin mining has fed itself off and a large part of it has moved to renewable forms of energy.
El Salvador’s adoption of the asset as legal tender was the optimal response.
El Salvador made history by being the first country to make bitcoin an official currency and also keep it on its balance sheet, sparking similar talks in Tonga, Brazil and Bolivia.
Expansion of the use of Bitcoin technologies:
While Bitcoin has discovered some volatility due to its flaws as a transactional currency, the Lightning Network is expanding at an exponential rate.
Capacity has grown 170% since January to exceed 2,900 BTC while channels on the network have reached 70,583.
After nearly four years, bitcoin got a major upgrade, called the “Taproot” upgrade that came with improved security and privacy for the network.
After 8 years of failed applications, the Bitcoin ecosystem had cause for celebration after the US Securities and Exchange Commission approved the first Bitcoin futures ETF.
Despite the fact that the endorsement was for a futures-based Bitcoin ETF, investors are optimistic that it will move things along for the approval of the spot Bitcoin ETF.
Several bitcoin mining companies went public during the year and are now acquiring their own bitcoins demonstrating a healthy ecosystem.
Bitcoin dominance fell below 38% for the first time since 2018, which is a sign enough to raise doubts in the minds of investors, but the broad panorama shows that Bitcoin is thriving and surfing like a pro.
Most of the forecasts are optimistic about a record first quarter for Bitcoin, which can be said to be an extension of the booming year of 2021.
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