Despite the depressed market sentiment in China, the price of Bitcoin rose by more than 70% at 202 1, and it is expected that there will be more increases in the coming year.
Judging from the adoption rate and price trend, 202 1 is an excellent year for the wider cryptocurrency market. Despite the recent bear market trend, the prices of most cryptocurrencies have soared since the beginning of this year.
By 202 1, the value of bitcoin will increase by more than 70%.
202 1 year is coming to an end, and bitcoin is still the most important cryptocurrency in the world. In the past 52 weeks, the value of cryptocurrency has experienced a sharp rise, which has outperformed many major financial assets such as gold during this period.
In the past 52 weeks, the price of Bitcoin has increased by 72%. Bitcoin started trading at the price of $32,000 per token in 20021year, and surpassed the historical high of $20,000 in 20 17 at the end of 2020. This leading cryptocurrency continued its rebound in 2020 on 202 1 and quickly reached a record high of more than 64,000 US dollars in April.
With the continuous adoption of cryptocurrency, the rebound followed. More commercial entities entering the encryption field will help push up the price. Tesla began to accept bitcoin as a payment method for its electric vehicles; MicroStrategy continues to accumulate more bitcoin, and El Salvador is preparing a bill to make bitcoin legal tender.
The rising adoption rate of institutional investors and retail investors has pushed Bitcoin to a record high of $64,000. However, since May, Bitcoin has been underperforming until September. The main reason for the poor performance is that China prohibits activities related to cryptocurrencies.
Mining activities with cryptocurrency were banned in China provinces. China occupies most of the mining computing power of Bitcoin. Therefore, the encryption mining ban has led to a sharp drop in the hash rate of bitcoin mining. As a result, the price of Bitcoin fell by more than 50% and fell below the level of $30,000 in July.
The China administration did not stop there. The People's Bank of China (PBoC) prohibits financial institutions and commercial entities from engaging in encryption-related transactions. Companies found to handle encryption-related transactions will be sanctioned. This move effectively ended the encrypted trading activities in Asian countries. As a result, many cryptocurrency exchanges have terminated their services in China. In addition, companies such as Alibaba and Bitcontinent stopped selling encrypted mining hardware to China residents.
Elon Musk's attack on Bitcoin and its massive energy use also led to a bear market performance. Due to environmental concerns about its energy use for mining purposes, Tesla stopped paying by bitcoin.
Bitcoin prices rebounded in September as miners moved to Europe and North America. With the emergence of mines, mining computing capacity began to recover, and other individual miners found new homes in the United States, Kazakhstan, Iran, Canada and other countries.
El Salvador became the first country in the world to officially use Bitcoin as legal tender in September. Despite warnings from global financial institutions such as the International Monetary Fund, the adoption of bitcoin in El Salvador has achieved results.
Bitcoin rose slowly to a record high of $69,044 in June 5438+065438+ 10, and the total market value of cryptocurrency reached a record high of $3 trillion. The increasing demand for bitcoin by institutional investors and the entry of more corporate entities have pushed the market higher.
However, Bitcoin is currently down nearly 30% from its all-time high, and the current transaction price of each coin is about $50,000. The recent poor performance was attributed to selling pressure from China, as the exchange closed its business in China and China traders sold their bitcoins before losing money.
What will the market be like in 2022?
It is expected that 2022 will bring further growth to the cryptocurrency market, especially Bitcoin. Jack Dorsey resigned as CEO of Twitter and changed the name of Square to Block, focusing on developing bitcoin-centric products.
Market experts are optimistic that 2022 will be a better year for Bitcoin. Vijay Ayyar, vice president of enterprise development and global expansion of cryptocurrency exchange Luno, believes that the United States will see the first spot bitcoin exchange-traded fund (ETF) in 2022. He said, "The bitcoin futures ETF launched this year is generally considered to be unfriendly to retail investors, because the contract extension cost is as high as 5- 10%. More and more pressure/evidence ... indicates that the Bitcoin spot ETF will be approved in 2022, mainly because the market is now big enough and mature enough to support it. "
Gray has applied to convert its Grey Bitcoin Trust (GBTC) into a spot bitcoin ETF, and many people are optimistic that the SEC will approve at least one proposal next year.
Kate Voltman is a certified public accountant in new york, specializing in encryption technology. It is estimated that Bitcoin will reach $65,438+000,000 in the first quarter of 2022. "The most knowledgeable educator in this field predicts that Bitcoin will reach $65,438+000,000 in the first quarter of 2022 or earlier," she said.
Bitcoin technology forecast in 2022
Due to the poor performance of Bitcoin in recent weeks, the current technical indicators of Bitcoin are negative. The MACD line is still in a bearish area, while the RSI is 46, indicating that Bitcoin is facing market selling pressure.
However, long-term indicators show that Bitcoin performs well. BTC trading price is higher than the 200-day simple moving average of $47,272. As the performance of Bitcoin is expected to be better in the coming year, technical indicators may improve in the coming weeks and months.
By June 5438+ 10, the selling pressure from China is expected to end, and the price of bitcoin may soar, similar to the calculation of mining. Once this happens, MACD and RSI will return to the positive area. According to WalletInvestor's prediction in 2022, by the end of 2022, the price of Bitcoin may be higher than $80,000.
Anyway, it will be exciting to see the performance of Bitcoin in the coming year.