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Bitcoin Crash in March 2020
2020 started with bad news. From February to March, Bitcoin fell from over $10,000 to below $4,000. However, the crash wasn’t just in the crypto market. It was a full-on economic recession because of the COVID pandemic. For example, the AEX (the stock market index) closed with the largest drop since 1987, a drop of more than 10%.
Bitcoin Halving in May 2020
The halving event happened on May 11. The new reward per block was set at 6.25 BTC, which was the new era for Bitcoin. So, the number of bitcoins circulating became even scarcer, which also coincided with people receiving their stimulus and money packages. Because of the higher demand and lower supply, the price rose.
Bitcoin Core Update in June 2020
The next on the Bitcoin news were changes within the network. As upgrades usually cause price increases, they’re important news. Bitcoin Core is responsible for everything in the ecosystem, the update for which was released on June 28 by 119 developers. OpenSSL was removed from the code to increase the security of the protocol and reduce vulnerabilities to attacks.
BTC Banking in July 2020
The Comptroller of the Currency (OCC), which supervises the national banks, allowed US banks to offer Bitcoin services. The first companies to jump on this news were Avanti, Kraken, BitPay, and Paxos. All of them applied for a license and bank charter.
MicroStrategy in August 2020
The most bullish news of 2020 came in August when the business intelligence company MicroStrategy purchased bitcoins worth about $250 million. The reason was the Inflation Ghost.
BitMEX and PayPal October 2020
The most shocking news of October came from the derivatives platform BitMEX. The exchange has been sued by the US Commodity Futures Trading Commission (CFTC). According to the CFTC, BitMEX was operating without proper licenses. It was also accused of manipulating the market, which doesn’t look good for the price of Bitcoin.
On the plus side, PayPal opened its doors to Bitcoin the same month. Anytime a billion-dollar company starts accepting cryptocurrency, it pushes the market forward and causes a price increase. It’s also important to note that PayPal bought up about 70% of the newly mined Bitcoins.
Institutional Money in December 2020
MicroStrategy made the first influx of institutional money at the end of 2020, which was followed by Square, Stone Ridge, MassMutual, Guggenheim Partners, Grayscale, and Ruffer Investment. In total, the investments were in the hundreds of millions USD. MicroStrategy raised $650 million in debt securities and, since then, successfully turned that cash into Bitcoin. This prompted a price increase, with BTC rallying above $24,000 during that period.
Why is Bitcoin going up? Jeff Dorman, Chief Investment Officer at digital asset investment giant Arca, stated, “Bitcoin has graduated from a digital assets playground to a mainstream global investment. Investors now have the knowledge and means to buy Bitcoin themselves, and we are seeing it in real-time, which happened quicker than we anticipated.”
But if you want more insight into what pushed Bitcoin's value in 2021, below is a further description of Bitcoin’s historical price charts.
Crash Prompted by the FCA in January 2021
The BTC/USD pair took a plunge at the beginning of 2021 due to regulation issues. The UK Financial Conduct Authority warned people investing in crypto assets “should be prepared to lose all their money.” As a result, around $175 billion in market value was wiped off the market.
FCA Chief Mr. Bailey was sure that “Bitcoin's days [were] numbered.” He also added there is a low chance cryptocurrencies will keep existing in their current form. Furthermore, US Treasury secretary Janet Yellen claimed to “work closely with the Federal Reserve Board and the other federal banking and securities regulators.” Such comments signaled tougher conditions for cryptocurrencies in general.
Boost From Tesla in February 2021
The question of whether Bitcoin would go back up worried investors. Fortunately, Elon Musk mentioned Bitcoin on Twitter, and within a day, the price skyrocketed by 11%. Also, Tesla mentioned it purchased $1.5 billion worth of Bitcoin in an SEC filing, driving the price over $48,000.
Coinbase’s Listing in April 2021
Bitcoin hit a new record of over $63,000 in April, a day before Coinbase’s share listing in the United States. Coinbase is the cryptocurrency exchange in the US, and its listing on Nasdaq was a landmark victory for crypto advocates. This news had a positive impact on other cryptocurrencies as well, including Ethereum.
Mining Ban in China in May 2021
China’s cabinet vowed to crack down on Bitcoin mining, trying to mitigate financial risks and sending Bitcoin tumbling. Over the course of several weeks in May, BTC fell from over $58,000 to around $32,000. At this point, China’s share of global BTC mining has fallen to effectively zero.
New Narrative in July 2021
In July, the price of Bitcoin crashed below $30,000. This was the time when the ESG (environmental, social, and governance factors) narrative dragged the mood in the market down. Bitcoin also suffered from the Financial Action Task Force’s negative regulatory undertones. These stories began to affect the global economy - the sentiment fell to single-digit levels at the time.
Full Ban on Cryptocurrencies in China in September 2021
Cryptocurrency trading has been illegal in China since 2019, but it continued through foreign exchanges. This time, the official declared a full ban. The People's Bank of China said: “Virtual currency-related business activities are illegal financial activities.” Within a few days, the price of Bitcoin fell by more than $4,000.
Regulatory Recognition in October 2021
U.S. Bank, the fifth-largest retail bank in the USA, launched its Bitcoin custody service for fund managers. On top of it, the Biden administration might release an executive order to direct federal agencies. If this goes into effect, they will be ready to study and offer recommendations on the crypto market, which is great news for traders.
“It’s a validating moment,” said Jesse Proudman, co-founder and CEO at Makara. “I think that’s a really meaningful mark in the history of the broader digital-asset class.”
Bitcoin price today is $51 223.60.
Is Bitcoin a Good Investment?
Should I invest in Bitcoin? Now you may have this question in your mind. The digital currency Bitcoin hit another all-time high on October 20, 2021, climbing over $66,930. The strong advance of the cryptocurrency to a new record high does not seem to be coming to an end for the time being. So – Bitcoin: buy or sell?
Back in 2017-2018, people thought that Bitcoin coming close to $20,000 was the end. But the digital currency proved multiple times that it could overcome new barriers, even after massive drops. So, Bitcoin could be a good investment going further.
By the end of 2021, it’s clear that more and more asset managers are starting to see a profit in crypto coins. Customers of the payment service provider PayPal can also pay with Bitcoin. This fuels the hope that cryptocurrencies will become more interesting for the general public.
However, the investors’ optimism becomes even stronger when price targets from analysts - over $100,000 and even $250,000. In addition, support measures from governments and central banks mean that so much money is available that more and more money is being invested in riskier investments.
Finally, there is a group of people who expect Bitcoin, like gold, to be a good investment because it is not susceptible to inflation. The current advance started last year. The digital currency then roughly quadrupled in value, according to data from which monitors various exchanges on which the crypto coin is traded.Bitcoin Price Predictions for 2021-2022 by Crypto Experts
Bitcoin has been setting jaw-dropping records over the past couple of months. 2021 has been an amazing year for Bitcoin, and many experts are already predicting what the future will bring for this cryptocurrency.
If the current price is at $51 223.60, what is the Bitcoin future value?
Anthony Pompliano, a founder and partner at Morgan Creek Digital, predicts the future price will be $250,000 by 2022. Let’s see if other sources share the same outlook.
Standard Chartered Bank
In August 2021, analysts at Standard Chartered Bank gave their forecast, expecting BTC to reach the $100,000 milestone early by next year. This reflects the opinions of many other crypto experts. For instance, Nick Spanos, co-founder of decentralized network Zap.org, also believes that Bitcoin will hit $100,000 in the near future.
Token Metrics
Bill Noble, a senior market analyst at Token Metrics, recently made his own prediction for the Bitcoin price, where the target is $75,000 by the end of 2021. But he also highlighted the possibility of the price drop, even down to $25,000.
Tim Draper
Returning to positive 2021 Bitcoin price predictions, billionaire venture capitalist Tim Draper is aiming high. A while back, sometime in 2020, he made a prediction saying that BTC will hit $250,000. In mid-2021, he confirmed that he’s sticking to his original outlook for the end of 2022.
Long Forecast posted a small but informative forecast for the last months of 2021, expecting the price to go up to the $66,332-$72,186 range.Why is Bitcoin going up? Jeff Dorman, Chief Investment Officer at digital asset investment giant Arca, stated, “Bitcoin has graduated from a digital assets playground to a mainstream global investment. Investors now have the knowledge and means to buy Bitcoin themselves, and we are seeing it in real-time, which happened quicker than we anticipated.”
But if you want more insight into what pushed Bitcoin's value in 2021, below is a further description of Bitcoin’s historical price charts.
Crash Prompted by the FCA in January 2021
The BTC/USD pair took a plunge at t