Bitcoin has been at the forefront of the cryptocurrency industry for a very long time since its inception. This trend is not about to change anytime soon. Investors have been making big money from this coin thanks to its volatile nature. For instance, at the end of 2017, this coin rose to its all-time high making a few lucky investors instant millionaires. In the same breadth, a lot of investors have since lost a lot of money after the coin dipped once again by more than 70%. As of the moment, the market remains unpredictable. If you still want to invest in cryptocurrency without worrying about the trends and movements and make a few bucks on the side, check out https://thebitcoinscode.com. Here though, are some of the trends that will have an impact on Bitcoin in 2021.
1. Most Investors Remain Negative and Bearish
In just about 24 hours, the Price of Bitcoin has again dipped by about 5% or more. Bitcoin price dropped from about $3,500 to a low of $3,222. This drop significantly affected the crypto market pushing it down by a massive $10 billion in less than a week.
Also Read: Can Bitcoin Ever Replace The USD As The World’s Reserve Currency ?
Analyst expects this trend to continue with most expecting it to hit the $3000 mark. Some claim that if the coin fails to hold on to the $3000 mark, it could drop further by even 50%. If this trend continues, Chris Burniske, one of the partners at Placeholder, a big digital currency venture capital firm say that the market is likely to see big buy walls with investors expecting it to drop even further. It is not certain for most investors the price they should’ve shot the market, but most are likely to start buying at $2000 mark.
2. Innovations and Technology
While there are a lot of negative sentiments regarding the crypto market in terms of price, there is hope in terms of new development and innovation. Analysts say that there have been a lot of improvements in the areas of public blockchain and especially in privacy and scalability sectors. These improvements and technological innovations are the true determinants of the trend of digital currencies. If they continue in the same light and pace, then most likely than not, it is going to positively impact the price of most if not all cryptocurrencies. Innovations bring about new stuff in the market. If what is brought is of any value or solves an existing problem, then it gains traction and quickly rises in value.
3. Massive Volatility
Most cryptocurrencies have shown their volatility nature in 2018. They have been massive swings in price with Bitcoin leading the pack of sudden and massive changes in prices. Portfolio manager Jeet Singh claims that this is a normal trend in this industry and expects the price of Bitcoin to shoot back up. He says that it is normal for digital currencies to fluctuate with as much as 80%. Once they develop and set their business model, then you would expect them to start rising and even stabilize just like it happened with companies such as Microsoft and Apple.
