Bitcoin (BTC) values have been on sea-saw in 2021, but they will end particularly on a higher note than where they began. Considering the position, it was in January 2021, Bitcoin is trading just below $49,000, representing a 66% rise. However, it is still 30% less than the all-time high of $69,000, which BTC touched in November, reports CNN.com.
So, what’s next for Bitcoin, ETH, and other cryptocurrencies?
Cryptocurrency has become an essential element in the present financial regime. Despite diverging views about crypto assets, the fact that total cryptocurrencies in circulation today stand at $2.2 trillion is by itself a testament that it has come to stay. BTC accounts for a significant chunk of the crypto tokens in circulation and equals $920 billion.
The other major player is Ethereum which also closes the gap with the number one token. Ethereum is also popular crypto for intelligent contracts and nonfungible tokens (NFT). NFT has taken the art world by storm and has a total market value of $475 billion. Ether (ETH) values have also surged, and its values have more than quintupled this year, from around $730 per coin to nearly $4,000.
There are several Bitcoin ETFs or Exchange Traded Funds, and investors can choose any one of them. In addition, other Crypto Tokens could also be contemplating ETF investments following the path of BTC.
CNN quoted Nick Elward, senior VP at Natixis Investment Managers, saying, “The next possible step is for additional ETFs for other coins to launch. For example, there probably will be Ether ETF in early 2022. There probably will be an ether ETF in early 2022.”
Major financial players, institutional investors, and top fund managers George Soros and Stanley Druckenmiller have invested in crypto. However, one factor that affects cryptocurrency is its extreme volatility. The current tanking of prices of BTC and ETH is a stark reminder of the unstable nature of the crypto market.
Less severe crypto winters ahead?
Investors had rushed to buy BTC in 2017, and the prices surged from $1,000 to $20,000 by the end of the year. Then came the crash of 2018 when BTC prices plummeted to $3,500. It took almost two years until December 2020 for prices to reach $20,000 again.
Prices of BTC again surged in 2021 till April this year when values plummeted, and it was mayhem in the crypto market. The crash was precipitated by several factors, including increased calls for regulation and the banning of crypto mining in China. Ecological concerns also gave a bad name for cryptocurrency mining.
Such wild swings are a common occurrence in the cryptocurrency market. The key is to fathom these ups and downs and ride them to safety.
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