The Crypto Market has seen a steady rise since the end of 2020. The prices of different currencies have been going up and there are no signs of any losses whatsoever. This only hints at a very bright future for the Crypto Market in 2021. But things might not go as planned and the rates might even be very different from what everyone is speculating. The Crypto Market might go sideways at any moment. With some experts speculating that Bitcoin might be headed to the $100k mark might become a very hard goal to achieve as well.
Back in 2018, the Crypto market saw a very big fall. With Bitcoin selling at a price of $13,500 even after reaching a high of $19,783 back in December 2017. It later went on to drop to a low of $3,400. Bitcoin wasn’t the only cryptocurrency that took a hit, with other digital currencies like Ethereum lost value to a greater extent. The Cryptocurrency that had started the year with a high of $1,300 went on to be valued at just $91 by December of the same year. As of December 2020, Bitcoin was valued at more than $20,000 and Ethereum was valued at over $450.
Investors are still very interested to invest in Bitcoin and other cryptocurrencies. Even though the trend of craze investing for the major cryptocurrencies has died down, a group of people still believe in a future for digital currencies and continue to pour in their assets to pump them up. So far Bitcoin and Ethereum have been growing at a very good rate breaking all past records and even making up for the losses from 2018.
At the time of writing this article, Bitcoin stood at $55,441 and Ethereum stood at $2,134 This was more than double the value they had by the end of 2020. When you look at the growth chart for both the digital currencies you can see that after the 15th of April the rates for them took a dip of about 15% while other rival cryptocurrencies facing a plunge in value as well. From a record high of more than $64,000 for Bitcoin and $2,516 for Ethereum, they’re currently standing at the prices mentioned before. The rates keep going down and the value continues to decrease for now.
What is causing this fall in value?
There are a few factors that might be blamed for the sudden plunge in the value of Cryptocurrencies. Regulation fears are one major reason that might have caused the value to drop as it has.
Turkish Central Bank Regulations:
Recently the Turkish Central Bank has decided to cease all transactions using digital money and all companies that handle the payments through them will be banned from doing so. The new regulation will take effect from the 30th of April.
Online Rumours about Crackdown:
This could be another reason that can explain the drop. Recently a rumor has been going around on the Internet that states that the US Registry plans to crack down on Money Laundering operations that are being carried out using Cryptocurrency methods. There have been no official statements to verify the authenticity of this report.
With other plans of banning cryptocurrency in places, Central Banks around the world planning to have their own digital currencies and the banning of mining operations in Mongolia are some of the other reasons that have caused the volatility of Bitcoins and other forms of digital currency so far. Experts say that more regulations might be coming up in the future causing these cryptocurrencies to be more volatile therefore investors should be really careful.
What is the future of Cryptocurrency in 2021?
Even with the drop in value, Bitcoins and other digital currencies are still priced much higher than what they had started with by the beginning of this year. Volatility in these sectors is very common and even though financiers speculate that the market might crash just like it had back in 2018, the chances are still very low looking at the current trends in the market. Bitcoin is still priced at 93% more than what they had started with and Ethereum is priced 200% more. The numbers are still good and all hasn’t ended yet for these forms of cryptocurrencies.
In the past half a year, Bitcoin itself saw a market share of $700 Billion and most of it didn’t come from corporate investors but was invested by individuals. This is remarkable and according to market experts is said to be one of the reasons behind the record-breaking value of the cryptocurrency this year. Other than that there has been a huge increase in the number of Institutional Investors. The increase in the number of these money managers is one more reason for traditional investors’ money is being invested in Cryptocurrencies.
Big Investment giants suggest that Bitcoin still has the potential to cross $100,000 this year and maybe also cross the $130,000 mark. With more major market players taking interest in Bitcoins and more wealthy rich men investing in the digital currencies together with the continued interest of traditional investors, we can say that digital money isn’t taking a fall this year. With the pandemic continuing to take its toll on everyone, investors are going to keep trusting Bitcoins to preserve the value of their assets and not to get hit by Inflation.
Considering the data that we have, the trends shown by the cryptocurrencies, and the potential for them to be used during this tough time. We can only say that all hasn’t ended for digital money and it will continue to go up through the year with a few major dips, which are totally common. If you’re planning to invest in Cryptocurrencies we would say this is the perfect time for you, you may choose to head over to mycoinchain.com and pick your favorite digital currency to invest in right away.
Is the Crypto Market Going To Fall in 2021? was originally published in The Moon on Medium, where people are continuing the conversation by highlighting and responding to this story.
