Bitcoin has been booming since the mid of 2020. But after the constant rally, the cryptocurrency has been trading blows with various situations. And this has restricted its price between the $30,000 and $40,000 mark. But finally, the price of Bitcoin crossed $40,000 once again on 6th February 2021. This comes after the slow but constant rally along the last week. It also goes in line with Elon’s statement of Bitcoin being on the verge of widescale acceptance.
Bitcoin rally and positive news
After a tough month Bitcoin seems to back on the right track. The last month had fake news about the double-spend bug, a possible ban in India, and also strong statements by the US government against the cryptocurrency. But, recently with Elon Musk strongly speaking in favour of Bitcoin and institutions buying in, the price of the current has constantly been growing. In the last week, if we consider the lowest and highest prices, Bitcoin has increased by about 50%.
And it has also crossed the $40,000 mark which was essential for the sustained growth of the cryptocurrency according to JP Morgan analysts. Citibank reports about the currency has also suggested that the price of Bitcoin might reach $300,000 by the end of 2021. At the same time, the constant price rise of the currency has also raised the hopes of investors.
In 2021 the number of Bitcoins acquired by institutions is more than the no of Bitcoins mined. This is also another positive news which makes me think that yes, it is possible that we might actually reach $300,000 by the end of 2021. The constant tweets about Bitcoin and cryptocurrency in general and the institutional acceptance have all been promoting to the rally of the currency.
Reports suggest that in 2021, we might even see banks adopt cryptocurrency and treat it as a valid asset. And if that happens, there is no stopping Bitcoin, if not this year by 2022 we are surely touching the moon as the way enthusiasts like to say it. Analysts say that the price reduction in Bitcoin might be due to the consolidation happening before the next big bull run. As the asset is slowly getting accepted by authorities and individuals, it is obvious that there is bring future ahead for the same.
One important thing to know as an investor is to hold tight if you believe in the currency. Because even in the future there are going to be huge swings and only if one can hold will they see the gains.
What are your thoughts on the huge rally of the cryptocurrency? And do you think that this a good time to invest in cryptocurrency? Yes or no and why? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.