The year 2021 is shaping up to be a watershed year for Bitcoin, as the cryptocurrency’s price soars above $40,000, more than twice its all-time high reached in 2017. Even as Holders celebrate and skeptics shake their heads in amazement, it’s essential to remember that a great deal has happened in the world since 2017, making this bull run vastly different from the one that came before. But before we move ahead, register yourself or visit website, and learn there is about the safest and easiest ways to earn in the crypto such as Bitcoin.
Not Shi coins, But Bitcoin
In 2017, bitcoin served as a gateway drug for the whole cryptocurrency industry. They were utilizing bitcoin to trade altcoins and invest in initial coin offerings (ICOs), essentially gambling away their money in the hopes of becoming filthy rich. The year 2017 was the first time that the general public had exposure to cryptocurrency assets, and it was like the Wild West when it occurred. The regulation was almost non-existent, and anybody, anywhere, who had some money could create a token and sell it on a cryptocurrency market. In the absence of any consumer safeguards, it seemed as though everyone had become an expert in assessing early-stage, blockchain-based “investment opportunities.”
Although Bitcoin has seen significant volatility, it has maintained its long-standing support level of around $20,000. This milestone was the all-time high of the Bitcoin bull run in 2017-18. As a result of the recent market downturn, long-term investors’ behavior demonstrates their positive attitude toward Bitcoin; the balance in addresses that have been accumulating the cryptocurrency has only increased as the price has dropped, and even the number of addresses that are now holding Bitcoin is increasing at an alarming rate.
These locations are taking advantage of the reduced-price points to increase their earnings in the future. This massive purchasing pressure that was seen at about 30K will very certainly intensify at lower levels. In fact, a retest of the 20K level followed by a rebound would serve as confirmation of the largest Bitcoin bull run the world has witnessed to this point.
The stock market in the United States shows a megaphone pattern, which is developing on the S&P 500. When it comes to the uninitiated, a megaphone pattern can be defined as one that comprises at least two higher highs followed by two lower lows. It often develops when the market is extremely volatile and traders are unsure of its direction. If we witness a small decline in the stock market followed by a rebound, this may signal the beginning of a bull cycle for all assets as capital flows reverse direction. Bitcoin began the first quarter of 2021 with a value of $29,500. While the second quarter has been bearish thus far, it has also been steady, and there is no evidence to indicate that the bull run is coming to an end.
Putting A Monetary Value on Bitcoin
The stock-to-flow ratio of bitcoin (the amount of newly-mined coins added annually to the total number of coins in circulation, which is 18.8 million) has proved to help determine and forecast the price of bitcoin. Every four years, the pace at which bitcoin is mined is half, and historically, this occurrence has been accompanied by an increase in the value of bitcoins. The most recent halving occurrence occurred in May 2020. According to Pantera Capital, a study of the stock-to-flow ratio and the effect of bitcoin halving’s on the price indicates that the cryptocurrency will reach a target price of $115 000 by the end of 2021. Whereas major investment banks were skeptical of cryptocurrency three years ago, many now give this new asset class significant consideration.
Not Retailers, But Institutions
Retail investors – ordinary people looking to get into bitcoin and earn money — were at the forefront of the bull run in 2017. Investors who were smart enough to see through it believed it was a fraud, except a few famous die-hards such as Chamath Palihapitiya and the Winklevoss Twins. Consumers regularly aren’t paying as much attention this time. Part of this is because everyone is exhausted after the dumpster fire in 2020, and people are just uninterested in bitcoin at this point in their lives. Part of it is due to the media’s attention to important problems such as COVID-19 vaccinations, impeachment 2.0, economic stimulus, and other topics.
Because consumers are mostly distracted, institutional investors are driving this 10x rise from $4,000 in March 2020 to new all-time highs over $40,000. According to a Fidelity study published in June, soon after the announcement of limitless fiscal stimulus, more than 35% of institutional investors perceive value in bitcoin, and they are much less worried about price volatility and market manipulation than they were before.