Bitcoin’s ups and downs continues. After dropping by over 15% over the weekend, Bitcoin was trading below the $50,000 mark. However, on Monday, the leading altcoin showed resilience and bounced back to cross the symbolic $50,000 mark. At the time of writing this article, Bitcoin is trading around $54,500.
The other two leading tokens Ethereum’s Eth, and Ripple’s XRP resonated with Bitcoin’s roar. While Ether prices surged by a significant 9%, XRP reported the maximum jump, a 15% rise.
Last week’s “Bit Fall” was surprising. While the volatility is expected, an overnight drop by over 15% came as a bolt from the blue for many crypto investors who were betting on Bitcoins to hit $100k in 2021. A panic struck market response to US president Joe Biden’s plans to double the capital gains tax accentuated the speed of Bitcoin’s fall. In a matter of 24 hours, over $200 billion were lost. However, the trading data from Monday makes us hopeful of a bullish Bitcoin again.
80% Rise in 2021
While other traditional investments like stocks were giving investors a hard time due to the COVID pandemic, Bitcoin has been firm and its price has risen by over 80% since January 2021. Bitcoin has once again proven to be the most fruitful investment avenues with the best returns when compared with other conventional investment opportunities.
Recently, there have been a few unfavourable decisions that have contributed to dampening the upsurge in Bitcoin prices. Apart from US president Joe Biden’s decision to increase the capital gains tax which is expected to affect the institutional crypto investors, the Turkish Central bank has now banned the use of cryptocurrencies as payments.
Bitcoins’ journey so far has not been easy anyway. These roadblocks and hiccups are not new. You’re not alone betting on a bullish Bitcoin in 2021.