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Bitcoin is about to end the 2021 bang with a winter whisper

Bitcoin is celebrating a rock-finished banner year.

The largest cryptocurrency in market value is the pace to end December with a 16% decline, the largest monthly loss since May. This is also the worst December since 2013. The 65% increase in 2021 is the smallest increase in the past year since the 36% increase in 2015. The coin was traded on Friday in New York for about $ 47,900 as of 11:45 am.

However, this year was a breakout year after the world of Bitcoin and the wider cryptocurrency became more mainstream in 2021 and attracted more attention from financial professionals and the general public. Those who watch the daily spin of Bitcoin say it’s all comparable to the course – coins are famous for their volatility and this year proved to be choppy like any other coin. rice field.

“Volatility is a bit higher,” said Chris Gaffney, president of TIAA Bank’s global market, in an interview. “It’s a speculative asset.”

Bitcoin was a huge success in 2021 and soon became new as more investors, especially the well-known Wall Street institutions, became interested in Bitcoin as a speculative asset or as a hedge against rising prices. Recorded a high price. Other positive developments, including the launch of the first US exchange-traded fund to track Bitcoin futures, have also helped push it higher throughout the year. By November, more than $ 20 billion had been invested in cryptocurrency-listed trading products worldwide, according to research and consultancy ETFGI.

The company said in a report that assets have increased by about 550% year-to-date, up from $ 3.1 billion at the end of last year.

“It was this excitement that raised Bitcoin to over $ 20,000. It’s real. Due to limited supply, financial institutions will make strategic allocations to Bitcoin, which is even higher. That’s it, “said Michael Purves, Chief Executive Officer and Founder of Tallbacken Capital Advisors. “The next stage of this kind of nasty Bitcoin adolescence will need more.”

Bitcoin has been in a difficult situation since it reached a record high of $ 69,000 in early November. According to analysts, this is plagued by concerns about increased oversight by regulators around the world. But as the crypto ecosystem expands this year, it also loses its advantage over other lesser-known start-ups that have gained popularity. Among the largest cryptocurrencies, Binance Coin recorded the highest returns, adding about 1,300 percent in 2021.

Miller Tabak + Co. Bitcoin’s year-end volatility could be the result of investors dumping unwinnable deals, said Matt Maley, chief market strategist at.

“Institutional investors prefer to increase their large holdings at the end of the year and reduce (or even throw away) losers,” he wrote in a note this week. “Well, what do you think? Many institutional investors have been late for Bitcoin and other crypto games this year.”

Bitcoin’s profits this year are still impressive and not as good as they were in past drawdowns. The 30% drop from its highest is not as dramatic as the other plunges it has experienced. According to the Bespoke Investment Group, the average decrease from the record is about 46%. Bitcoin’s mid-year pullbacks were even worse, with coins falling by at least 50%.

Looking to the future, many investors expect prices to recover and eventually reach new highs in the classic “cryptocurrency-to-month” way. Violent market volatility suggests that it can move in either direction.

“We expect Bitcoin to continue to perform well. The tailwinds include the recruitment of a wide range of investors from sustained inflation and continued education, as well as the broader macro environment,” said CrossTower Research. Martin Gaspar and Katherine Webb write. “Investors are increasingly understanding the unique value added of Bitcoin. As long as it continues to hum, we believe the price will continue.”

https://gulfbusiness.com/bitcoin-is-ending-its-bang-of-a-2021-with-a-winter-whimper/ Bitcoin is about to end the 2021 bang with a winter whisper

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