The rise and fall of the world’s largest cryptocurrency in 2021.
The world’s largest cryptocurrency experienced a number of rockets and nosedives this year to reach a record high of US$68,789.62 and a low of US$19,079.84.
The first major dip of the year happened in February after Tesla CEO Elon Musk tweeted his thoughts that Bitcoin’s price seemed excessive, which sent the price of Bitcoin tumbling 17% overnight.
Bitcoin’s recovery was then accelerated when Mr. Musk announced that Tesla would begin accepting Bitcoin as a payment method for vehicles in March 2021.
With the likes of PayPal, Visa, Mastercard, Amazon, Expedia and a number of other major companies announcing the introduction of Bitcoin acceptance through operations, the price of the world’s largest cryptocurrency maintained momentum.
Between June and August the leading cryptocurrency hovered below US$50,000, sparked by the Chinese government intensifying its Bitcoin crackdown from mid-June.
Another Elon Musk Tweet announcing the suspension of Tesla’s acceptance of Bitcoin as a payment method due to its harsh impact on the environment, added to the August Bitcoin price dive.
But El Salvador adopting Bitcoin as legal tender early in September reversed the Bitcoin slump into a bull-run that would see the world’s largest cryptocurrency hit a fresh record high of US$68,786.62 in November.
The late-year decline below US$60,000 again in December from renewed volatility followed SEC Chairman Gary Gensler commenting about a potential cryptocurrency regulation as well as uncertainty around the newly discovered Omicron variant of COVID-19.
India announced it is banning all private cryptocurrencies in favour of its own digital currency also added to the downward trend late in the year.
As the coronavirus continues increasing market volatility and dampens investor optimism, as well as looming crypto crackdowns around the world like in India banning private cryptos and Australia looking to launch its own digital currency, the future of the world’s largest cryptocurrency is as unpredictable as Elon Musk’s next Tweet.
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