This week’s Bitcoin Street Journal Market Update presents a comprehensive overview of the cryptocurrency market as the digital asset continues to attract the attention of the world’s investors. Episode 8 of Bitcoin Market Update from the Bitcoin Street Journal brings our readers the latest news, trends, and analysis from the world of Bitcoin and cryptocurrency, covering the events of the 22nd week of 2021.
1. Bitcoin Street Journal: Bitcoin Market Update Episode 8 Week 22
This week we take a look at the Bitcoin price volatility and looming bullrun-fueling events that are hanging on the horizon.
- Bitcoin prices($BTC) began the week at around $38,800 USD sliding downwards to a weekly low of $37,800 USD before promoting on Saturday to close out the week at $40,750 USD.
- Ballooning demand is hammering the dwindling Bitcoin supply creating confidence in the market and fuelling what traders are calling an impending bullrun.
- The DeFi sector experienced strong growth throughout the week, pulling away Ethereum from Bitcoin’s price because many alternate coins that are available on DeFi have a higher potential for staking rewards.
Propelling Bitcoin prices is an upcoming wave of applications that will expand userbases, marketplace innovations, and DeFi project enhancements.
- The Lightning Network is beginning implementation across major exchanges, allowing for faster confirmation times, lower fees, and limitless scalability.
- Ethereum 2 is rapidly approaching, with a much more efficient and green consensus model and the full breakdown and rollout expected within the next year.
- Bitcoin is expected to overtake its all-time high of +$20,000 USD in the coming weeks, potentially paving the way to a new class of digital properties and their prices.
2. Bitcoin’s Rollercoaster Ride in the Week 22 Market
The Volatility of the Cryptocurrency
Bitcoin experienced a tumultuous rollercoaster ride during the week 22 market. It dropped abruptly from over $58,000 per coin to an alarming low of around $45,000. This was a significant 20% decrease in its value in a few days. This trend seemed to reflect the continuation of an overall downward trend that Bitcoin began in April 2021.
However, in the same week, the most valuable cryptocurrency experienced a short-lived spike back up to nearly $55,000. Analysts point to a major Bitcoin exchange allowing institutional investors to purchase cryptocurrency using US dollars. This could be seen as one of the stabilizing factors that could keep Bitcoin from slipping below $45,000 again. Despite the slight resurgence, most investors remain cautious and watch for further major changes in the market.
- Bitcoin dropped abruptly from over $58,000 per coin
- A significant 20% decrease in its value in a few days
- Bitcoin experienced a short-lived spike back up to nearly $55,000
- Analysts point to a major Bitcoin exchange allowing institutional investors
3. Analyzing the Hikes and Dips of Bitcoin Value
The cryptocurrency market can be incredibly volatile, especially with individuals trading and speculating on Bitcoin and other digital assets. As the most popular and dominant cryptocurrency, Bitcoin has had many fluctuations over the years that investors need to be aware of. To help understand these fluctuations, it is essential to analyse both the hikes and dips of the Bitcoin value.
For particularly notable hikes, the 2017/2018 bull market was the most significant price surge in Bitcoin’s entire history. It began in late November 2017 and saw an unprecedented price of around US$20,000 in December of the same year. This period could be likened to a frenzy as investors rushed to get involved in the cryptocurrency market in expectation of future gains.
- It lasted just over a year, ending in early 2018 as the price quickly decreased
- Many individuals purchased Bitcoin without doing basic research, only to be left with substantial losses when the bear market started
The most significant dip in Bitcoin value also occurred in 2018, when prices dropped by 30%. This was in response to the crash of the cryptocurrency market after the peak of the 2017/2018 bull market. Comparatively, this dip was greater than any other dip in Bitcoin’s history. It eventually recovered, albeit slowly, to its current price of around US$9,400.
4. Is Now the Time to Invest in Bitcoin?
Bitcoin has been making headlines over the past few months, and it’s quickly becoming a widely accepted digital currency for paying for both online and offline purchases. But should you be investing in Bitcoin? Let’s take a look.
- Bitcoin has been proclaimed as “the future of money” and it’s price has grown exponentially since its establishment.
- From an economic perspective, investing in Bitcoin can be seen as a smart move, as it can yield a return over a relatively short time frame. There are also tax advantages, as it is considered a long-term asset, or one held for over a year, making it subject to long-term capital gains taxes.
On the other hand, investing in Bitcoin can be risky. Bitcoins can suffer from rapid price swings, and are incredibly volatile. The market is also unregulated, which adds to its volatility and risk. It’s important to research the factors that could influence Bitcoin prices before investing.
This concludes our update on the Week 22 episode of the Bitcoin Street Journal’s Bitcoin Market Update. We trust that readers now have a better understanding of the digital currency market and the importance of this weekly update. While Bitcoin is still in its early days, this update provides valuable information to those who are looking to stay ahead of the curve. We will continue to update readers with significant news and analysis from the world of Bitcoin and other digital currencies.