Looking back at 10 iconic moments in the crypto market in 2021

2021 is an extraordinary year for the crypto market. The total market value of crypto has hit a record high, and the ecosystem is constantly evolving.

In terms of valuation, as of December 28, 2021, the total market value of the crypto market reached US$2.5 trillion, more than double the amount a year ago. Bitcoin broke the previous record high and its market value increased by approximately US$545 billion. Although the recent trend has been slightly sluggish, its price has risen by nearly 70%. The Ethereum ecosystem is booming, and institutional investors’ appetite for the encryption field continues to expand. Meme coins such as Dogecoin and Shiba Inu coins have also become mainstream buzzwords.

More importantly, Bitcoin and other cryptocurrencies have also seen tremendous progress in terms of adoption. A mid-year survey published by Crypto.com shows that there are an estimated 221 million cryptocurrency holders worldwide, which is more than double the number in January. Terms such as NFT/metauniverse/web 3 have suddenly become discussed throughout the network. hot topic.

Regarding regulation, there are crackdowns and embraces. El Salvador declared Bitcoin as legal tender, and several countries including the United States have issued Bitcoin-based ETFs.

The crypto market has witnessed many interesting events this year, and the editorial team of “Be Tweet” will take you back to 10 iconic moments in the crypto market in 2021.

1. The world’s richest man Musk’s 1.5 billion U.S. dollars entered the game

As the founder, CEO and chief engineer of SpaceX, as well as an early investor, CEO and product architect of the electric car giant Tesla, Musk has a lot of glory this year, and foreign media even call 2021 the year of Musk.

BitTweet previously reported that Musk publicly expressed his excitement about Bitcoin at the end of January, saying that although he was “late”, he was still a supporter of BTC. On February 8, 2021, Tesla announced that it had invested 1.5 billion U.S. dollars in Bitcoin and expects to begin accepting Bitcoin as a payment method for its products soon. The news immediately ignited the entire crypto market. Data from the BitTweet terminal shows that after the announcement, the price of Bitcoin has risen by more than 10%.

The world’s richest man has always promoted his company as a model of low-carbon technology. Following strong protests from some environmentalists and investors, Tesla suspended the use of Bitcoin as a payment method on the grounds of energy consumption. The company wrote in a public statement: “We are concerned about the rapid increase in the use of fossil fuels in Bitcoin mining and trading, especially coal, which emits the most serious emissions of all fuels.”

Bitcoin fell more than 7% to $52,669 shortly after the news broke. Musk added that Tesla will not sell any bitcoins and intends to use bitcoins for transactions as soon as mining transitions to more sustainable energy sources.

2. The market value of Bitcoin surpassed $1 trillion for the first time

On February 19, the market value of Bitcoin exceeded $1 trillion for the first time.

Bitcoin-Market-Capitalization-at-1-Trillion.jpeg

This milestone came after major institutional investors and well-known financial companies began to support cryptocurrencies. In addition to Tesla, companies including Block (formerly Square), MicroStrategy, and Marathon Patent Group began to add Bitcoin to their assets. On the balance sheet, WeWork, Substack and insurance giant AXA started accepting Bitcoin payments.

3. The $69 million digital artwork starts the NFT wave

At Christie’s auction on March 11, the NFT work “Everydays: The First 5000 Days” by the pseudonymous digital artist Beeple was sold at a price of US$69.3 million, making Beeple one of the three most expensive living artists. The NFT boom has been marked with exclamation points. This auction also makes Christie’s the first major auction house to sell NFT-based all-digital artworks.

Everydays: the First 5000 Days - Wikipedia

This sale directly brought NFT into the mainstream view. At this time last year, NFTs were still a niche market, and they have now developed into a mainstream phenomenon. This year, we have seen Nike, Adidas, Playboy, Budweiser, Paris Hilton and other big brands or celebrities enter this field. In 12 months, the term has not only penetrated into a wider audience and Making digital asset ownership a more widely known concept, the monthly transaction volume of the NFT industry has also soared to billions of dollars.

According to data from DappRadar, NFT transaction volume in the third quarter reached 10.67 billion U.S. dollars. In 2021, NFT transaction volume is expected to reach 22 billion U.S. dollars, while in 2020 it is only 100 million U.S. dollars.

While the NFT market is booming, it is also becoming mature, with more use cases occupying a dominant position in the broader transition to practical NFTs. NFT is considered by the industry to be an important component of Web3-in other words, it is the key to the Metaverse. Entering 2022, we may still be at the deepest point of the NFT boom.

Nansen CEO Alex Svanevik once commented: “DeFi brings capital into the encryption field, while NFT is bringing the general public into the encryption field.”

4. “The First Encrypted Share” Coinbase goes public

On April 14, 2021, the cryptocurrency exchange Coinbase was officially listed in the United States, becoming the “first crypto stock” and the largest direct listing in the history of Nasdaq. Coinbase closed at 328.28 US dollars on the first day of listing, including all its outstanding shares, the company’s valuation reached 85.7 billion US dollars.

Perhaps many people underestimated the importance of this event, especially after the COIN stock price fell sharply (the closing price on December 27 was $280.27). However, no matter what the current stock price is, the event is of great significance to the cryptocurrency market.

Picture1.png

Successful listing is a victory for the entire market and a symbol of the recognition and support of traditional finance for the industry. For the entire industry, the Coinbase IPO also signifies that US regulators are willing to cooperate with crypto assets in the legal field. In addition, Coinbase’s decision has had a positive impact on other market participants. As previously reported, Kraken, another crypto exchange, also decided to list in 2022.

5. China completely bans encryption

It turns out that 2021 is an unusual year for Bitcoin mining. On May 21, the Chinese central government issued a memorandum which mentioned the crackdown on Bitcoin trading and mining. By June 9, the Bitcoin mines in the Zhundong Economic Zone of Xinjiang were ordered to close, and Qinghai followed closely. From June 18th to 26th, 26 Bitcoin mining companies in Sichuan were ordered to close. During the same period, Bitcoin fell below $30,000 for the first time since January, and its value shrank by nearly 30%.

On September 24, the Central Bank of China issued a blockbuster announcement that virtual currency does not have the legal status equivalent to legal tender. Any business activities related to virtual currency are illegal. In addition, overseas cryptocurrency exchanges that provide services in mainland China are also illegal. This has become the strongest signal for China to crack down on the encryption industry.

Picture1.png

China’s suppression has created opportunities for overseas Bitcoin mining operations. As Chinese miners seek to “go out to sea”, the United States has gradually become the largest Bitcoin mining business and business center. A statistics from the University of Cambridge shows that the United States has become the number one destination for Bitcoin miners. Mining infrastructure is gradually emerging in North America, Russia, Central Asia and Europe.

6. El Salvador became the first country to recognize Bitcoin as legal tender

El Salvador is a small coastal country in Central America and became the first country in the world to legalize Bitcoin. On June 9, 2021, the Bitcoin law was voted through in the country’s parliament. Soon after, the price of Bitcoin rose by 5% to $34,239.17.

4329-krwipar4864310.jpeg

Bitcoin law states that approximately 70% of Salvadoran people do not have access to traditional financial services, so cryptocurrency is seen as a way to increase financial inclusion. On September 7, El Salvador launched the Chivo wallet on the day the Bitcoin law came into effect.

In addition, this small Central American country is planning to build a Bitcoin city. According to Reuters, the Bitcoin City is planned as a circle (like a coin), and a huge Bitcoin Logo will be placed in the central square. The city will be built near the Conchagua volcano to use the country’s geothermal energy to power the city and cryptocurrency mining.

El Salvador is already piloting Bitcoin mining at another geothermal power plant next to the Tecapa volcano. According to President Bukele, residents of Bitcoin cities do not need to pay any income, property, capital gains, or even salary taxes.The construction of this city will take into account the attraction of foreign investment.

7. Musk “carrying goods” Dogecoin

Social media, especially Twitter, seems to play an increasingly important role in the cryptocurrency market. Affected by the celebrity effect, a few short tweets from celebrities such as Musk can cause the price of the currency to rise and fall sharply.

Picture1.png

In February 2021, Musk tweeted “Doge” with a picture of the rocket launching into the sky. After a few minutes, the price of Dogecoin started to rise, and FOMO sentiment (fear of missing out) trending retail investors rushed into the market.

Musk also hinted in his tweet that Dogecoin may be “the future currency of the earth.” Following his series of half-true and half-false suggestive tweets, Dogecoin began to rebound in February. In May, just before Musk’s guest on “Saturday Night Live” (SNL), the price of Dogecoin skyrocketed. . On May 8, the day Musk participated in the SNL show, Dogecoin hit a record high of about 73 cents.

Although many people believe that the DOGE bubble will burst and collapse, the token still has a place in the crypto market. As of December 27, Doge was trading at $0.28, ranking 12th in market capitalization.

8. Launch of the first Bitcoin futures ETF in the United States

On October 19, ProShares futures-based Bitcoin ETF was listed on the New York Stock Exchange under the ticker symbol “BITO”. Bitcoin futures ETF invests in Bitcoin futures contracts, that is, an agreement to buy and sell assets at an agreed price at a certain time in the future, instead of directly investing in Bitcoin. The new product allows people to trade through regular investment accounts, bypassing the hassle and security issues of cryptocurrency exchanges.

Picture1.png

Although the prices of ETF and Bitcoin may not necessarily match, the ProShares Bitcoin futures ETF set “one of the highest first trading days in the history of ETFs”, with a trading volume of just over US$1 billion at the close of the day, second only to Blackrock US Carbon Transition Rdnss ranked second.

In the past ten years, crypto companies have been scrambling to issue the first US Bitcoin spot ETF. However, the U.S. Securities and Exchange Commission (SEC) has been slow in accepting the asset, citing concerns about the lack of regulation of the Bitcoin market and the possibility of fraud and manipulation. SEC Chairman Gary Gensler stated that under the Investment Company Act of 1940, the institution is more open to futures-backed Bitcoin ETFs, which govern mutual funds and may provide “important investor protection.”

9. Bitcoin successfully achieved Taproot soft fork

On November 14, the Bitcoin network successfully activated the Taproot soft fork, which was the first upgrade of Bitcoin in four years.

The highly anticipated soft fork of Taproot brings features that improve online privacy, scalability, and security. In addition, the Taproot upgrade unleashes the potential of smart contracts, thereby reducing the number of middlemen in bitcoin transactions.

Bifurcation occurs when the blockchain code changes radically and there are two potential coding paths going forward.Therefore, blockchain users must decide and support one chain rather than another. This may lead to consensus divergence in the crypto community, and even a permanent fork to create a different kind of token. For example, Bitcoin Cash is generated by the fork on the Bitcoin blockchain.

10. The U.S. Infrastructure Act was signed into law, and the power of crypto lobbying was awakened

In the past year, people have paid more attention to cryptocurrency regulation. US Securities and Exchange Commission (SEC) Chairman Gary Gensler said that some crypto tokens belong to the category of securities. Fed Chairman Powell and Secretary of the Treasury Yellen have repeatedly warned against using cryptocurrencies, especially stablecoins, saying that the entire asset class is volatile and speculative. .

On November 15, US President Joe Biden signed the Bipartisan Infrastructure Act into law, which includes tax reporting requirements applicable to digital assets such as cryptocurrencies and NFTs.

The most controversial clause is mainly the definition of “broker”. The industry generally believes that this definition is too broad, which will lead to other participants in the encryption field, such as miners, software developers, transaction validators, and node operators. All need to report most digital asset transactions worth more than $10,000 to the Internal Revenue Service (IRS).

This has caused concerns in the cryptocurrency community. Many lobbyists have emerged. The Blockchain Association and senators represented by Pat Toomey and Cynthia Lummis have made their best efforts to revise the wording of the “broker”. The struggle has highlighted the importance of crypto lobbying and greatly enhanced the cohesion of crypto professionals.

Ron Hammond, Director of Government Affairs of the Blockchain Association, said: “The battle for the Infrastructure Act really woke everyone up. The effort to define a broker is a unified moment for lobbying representatives of the crypto industry.” Kristin Smith, executive director of the Blockchain Association, said: “I definitely think this is a critical moment. It has become a catalyst to change the way Washington’s cryptocurrency industry participates.”

According to a December report by The Economist, crypto companies spent US$5 million lobbying U.S. lawmakers in the first three quarters of 2021. Approximately US$2.5 million in spending occurred between July and September, up from the same period last year. Two times.

Write at the end

This year, many important events occurred in the encryption field. Bitcoin, mining business, and cryptocurrency transactions have become more and more well-known around the world. Innovative blockchain use cases such as NFT and Metaverse will also become 2021. A recurring topic in 2016, people no longer just pay attention to the soaring or falling crypto prices. This is destined to make 2021 a year worth recording, and 2022 is worth looking forward to.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/looking-back-at-10-iconic-moments-in-the-crypto-market-in-2021/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-12-29 22:45
Next 2021-12-29 22:47

Related articles