2021 has been an excellent year for the broader cryptocurrency market in terms of adoption and price action. The prices of most cryptocurrencies have soared massively since the start of the year despite the recent bearish trend.
Bitcoin Adds More Than 70% to its Value in 2021
2021 is coming to an end, and Bitcoin remains the most dominant cryptocurrency in the world. The cryptocurrency’s value has experienced a massive increase in value over the past 52 weeks, outperforming numerous major financial assets such as Gold during that period.
In the last 52 weeks, Bitcoin’s price has risen by 72%. Bitcoin began 2021 trading around $32k per coin after it surpassed its 2017 all-time high of $20,000 towards the end of 2020. The leading cryptocurrency continued its 2020 rally in 2021 and quickly reached a new all-time high above $64k by April.
The rally came as the adoption of cryptocurrencies continued. The entry of more corporate entities into the crypto space helped push the price higher. Tesla began accepting Bitcoin as a means of payment for its electric vehicles; MicroStrategy continued to accumulate more bitcoins, and El Salvador was preparing a bill to make Bitcoin a legal tender.
The increase in adoption from institutional and retail investors pushed Bitcoin to a new all-time high of $64k. However, from May, Bitcoin went on to underperform till September. The poor performance was mostly caused by China’s ban on cryptocurrency-related activities.
It began with the various provinces in China banning cryptocurrency mining activities. China accounted for most of Bitcoin’s mining hash rate. Hence, the crypto mining ban resulted in Bitcoin mining’s hash rate declining massively. Thus, resulting in Bitcoin’s price losing more than 50% of its value and dropping below the $30k level in July.