On Christmas Eve, the value of Bitcoin soared above $51,000, the highest level in more than two weeks and the highest since November. The value of the world’s biggest and oldest cryptocurrency has increased by almost 7% in the last few days. While writing this report, the value of the numero uno cryptocurrency was $51,298, an increase of 5% in the last 24 hours.
This increase was a consequence of a general uptick in confidence in the financial markets. So far in 2021, the digital asset — which is renowned for its volatility — has climbed by around 76 percent. After reaching a record high of about $69,000 earlier in the month, Bitcoin’s value had plummeted by more than $18,000 by the end of November.
Throughout the previous decade, the price fluctuation of Bitcoin has caught the curiosity of a large number of individuals. So far, the year 2021 has shown to be an interesting one for numerous cryptocurrencies, with Bitcoin and its price proving to be the most notable. In April and May, the price of bitcoin reached fresh highs for the first time.
While Bitcoin first saw a flurry of activity, it soon began to slide into a downward spiral. Since the introduction of the first-ever Bitcoin futures exchange-traded fund (ETF) in October on the New York Stock Exchange (NYSE), the trend has remained bleak. It trades on the NASDAQ under the ticker symbol BITO. This was a watershed event in the history of cryptocurrencies, and it was widely seen as another step toward mainstream investment.
All of the debates over the amount of energy required to mine Bitcoin had an influence on the value of the cryptocurrency in the meantime. However, on September 7, El Salvador became the first government to accept Bitcoin as legal cash, making it the first country to utilize the cryptocurrency as a way of exchanging goods and services. In a manner, El Salvador’s decision may serve as an example for other nations in the area who may want to follow in its footsteps.
Investors made significant returns in November, when the price of Bitcoin reached about $69,000 per coin. However, their joy was short-lived, since the World Health Organization (WHO) declared an epidemic of the Omicron COVID strain shortly after. The price of cryptocurrencies fell as a result of this once again.
What will happen now, with this new jump in price, is whether Bitcoin’s value continues to grow or if it will plummet again. As of right now, it is an unsolved question, and only time will tell whether or not it will be addressed. Meanwhile, the second-largest cryptocurrency in the world, Ether, was trading at $4,100.
