Bitcoin enthusiasts may celebrate: bitcoin, the first and the most expensive cryptocurrency, recovers at the time of writing this article, a $57,500 rate, becoming 2021’s Top Performing Asset Class! Bitcoin is still recovering from a poor September when its value fell dramatically twice — at the start and close of the month. However, October is usually a good month for Bitcoin, so here we grow again. According to Coindesk data, in just one day bitcoin increased 5.22% to $50,227.07. At the moment of writing (6, October), its value reached $52,000.
The BTC cryptocurrency has outperformed stocks and commodities globally, according to data from the New York Digital Investment Group (NYDIG), with year-to-date returns just shy of 50%. And this despite a typically volatile, market corrections, roller-coaster year, with spectacular peaks and gut-churning, 60% drops along the way.
Despite the decline of stock indices and ongoing threats of new industry regulation, cryptocurrencies had a successful week last week, with total inflows to funds totaling $90 million (in Bitcoin — $69 million, and in Ethereum — $20 million). It should also be mentioned that the difficulty of mining coins and miners’ profits are improving, and the amount of processing power has already nearly surpassed the August peak.
“We believe this strong change in sentiment is due to growing investor confidence in this asset class and more flexible statements by the SEC and the Federal Reserve,” said James Butterfill, a CoinShares investment strategist. In addition, Fed Chairman Jerome Powell stated in a speech to Congress that the Fed has no intention of outlawing cryptocurrencies. In the foreseeable future, these factors may contribute to the value of cryptocurrencies.
However, you may be interested that bitcoin is well-known for its volatile behavior and has increased by more than 300% by 2020. In late July, Bloomberg Intelligence senior commodities strategist Mike McGlone predicted that bitcoin’s price would return to $60,000 rather than fall to $20,000. In 2020, Ukraine ranked #1 in the world in terms of the percentage of people owning a cryptocurrency.
With its ongoing developments and technology, the crypto business never ceases to amaze us. As a result, it is all too easy to overlook something and become perplexed by the crypto market. To avoid this, the first European crypto trading site bit4you created the crypto Academy educational section. There, you will find a wealth of useful materials dedicated to a wide range of crypto-related issues. Furthermore, with the bit4you Demo mode, you may test as many trading techniques as you want and follow the business without taking any risks by receiving $100,000 in virtual funds on your account. Do not hesitate to start your fascinating crypto journey with bit4you!
Tatiana Leveria, Team bit4you