With the sharp decline in December, Bitcoin ends its breakthrough rise in 2021

In terms of market value, Bitcoin, the world’s largest cryptocurrency, closed with a 19% drop, the largest monthly drop since May. This was also the worst December performance since 2013. The index rose 60% in 2021, the smallest increase since 2015, when it rose 36%.

However, after Bitcoin and the wider cryptocurrency spent the entire year 2021 attracting more attention from financial professionals and the public around the world, Bitcoin had a breakthrough year. Those who observe Bitcoin’s daily fluctuations say that all of this is normal-Bitcoin is known for its volatility.

With the sharp decline in December, Bitcoin ends its breakthrough rise in 2021

“We are seeing increased turbulence in the market,” TIAA Bank President of Global Markets Chris Gaffney said in an interview. “This is a speculative asset.”

Bitcoin began to explode in 2021 and soon reached new highs, as more and more investors—especially Wall Street—started to see it as a speculative asset or a hedge against rising prices. Other positive developments, including the launch of the first U.S. exchange-traded fund (ETF) to track Bitcoin futures, also pushed Bitcoin to rise throughout the year. According to data from the research and consulting company ETFGI, as of the end of November, investment in global cryptocurrency exchange trading products exceeded US$20 billion, a record.

“The factor that allowed Bitcoin to rise above $20,000 is that institutions will strategically allocate Bitcoin because the supply of Bitcoin is limited and its price will only continue to rise,” said Michael Purves, CEO and founder of Tallbacken Capital Advisors. “Bitcoin, currently in the’embarrassing adolescence’, will need more in the next stage.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/with-the-sharp-decline-in-december-bitcoin-ends-its-breakthrough-rise-in-2021/
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