Bitcoin has seen a dramatic increase in value. Since August 2020 Bitcoin has quadrupled in price and it is expected that this price rally is far from over. It seems that we have entered a new stage with bitcoin and other cryptocurrencies, a stage where cryptocurrency will go mainstream and stay mainstream.
A highly volatile coin
Last march the value of Bitcoin dropped to around 5000-dollar per Bitcoin. One month before this happened, Bitcoin was being traded at steady values ranging from 7000 to 8000 dollars. Suddenly the value started dropping and more and more people began to sell. This increase in selling volume and decrease in buying volume triggered a massive sell-off. The sell-off did not last long and a couple of days later Bitcoins’ price rose by a couple of thousand dollars. In the coming months, the Price of Bitcoin remained quite stable and hovered between 7000 and 9000 dollars.
The halving in 2020
In 2020 we experienced a new halving of Bitcoin. This means that the reward for mining Bitcoin is halved and this happens every three to four years. After the halving, it becomes harder to obtain Bitcoin and therefore a price increase is expected. In 2012 the first halving happened, followed by the second halving in May 2016 and a third halving in May 2020. Every halving came with a price increase and this can be seen in several graphs. The price increase does not happen directly after the halving. History shows that price increases start a couple of months later after the initial halving.
The Bitcoin Rally in late 2020
Around July 2020, 2 months after the halving, the price increased slightly. Bitcoin remained around this price for the coming months and slowly but steadily increased in value. However, around October 2020 things took a big turn and the process started to speed up significantly. The Bitcoin news gave this rally even more fuel and within a month it reached a value of $18000 dollar per Bitcoin. The media kept publishing news articles about Bitcoin and during December the price more than doubled itself to $36500 dollar.
In 2021 the price keeps increasing even more
The high value of Bitcoin was expected to plummet in January 2021. Although it lost a significant percentage of its value, it slowly recovered itself and even reached new heights. During late January the price of Bitcoin started to increase and reached an even higher all-time high. Currently, the coin is in yet another bull state and reached another ATH price at $48000 dollar per Bitcoin. This was due to a 1.5-billion-dollar investment from Tesla, which reached the news and generated a new wave of the invested money in the cryptocurrency.
The price increase in altcoins
Bitcoin is not the only coin that got incredible gains in the past months. Altcoins like Ethereum have also Quintupled in value. Other coins like XLM, Cardano, and Chainlink have also seen incredible gains in the past couple of months. This shows that investing in Cryptocurrency is still hot and will be hot for a long time. More and more investors start putting their funds into cryptocurrency in hope of accumulating significant gains. Not only small investors are into crypto. Currently a lot of investment funds like BlackRockare into Bitcoin. Grayscale investments are also starting to invest in Bitcoin. In most cases, these large organizations invest in stock or cryptocurrency for a longer period. This shows that the Bitcoin rally will most certainly remain for a couple of months or even years. Follow the latest crypto news for more information and keep yourself updated about changes in the cryptocurrency market.