After the wild year Bitcoin has had, not only in terms of market value but in growth and usability too, many have been asking, “is it too late to invest in Bitcoin?” As we explore the rise and rise of Bitcoin and the recent move from “unstable investment” to being the latest institutional investment go to, we’ll get to grips with whether you’ve missed the boat or if there’s still hope.
Bitcoin’s Price Performance Year-To-Date
This time last year Bitcoin was rising from the trenches of the global market crashes instigated by the Covid pandemic. Recovering from lows of $4,915 experienced in mid-March, by the end of April the price had recovered to around $7,000 hitting $9,000 in the first week of May. Little did we know Bitcoin was about to board one of the most epic bull runs in its history.
At that time last year Bitcoin’s all time high was $19,783 reached on 17 December 2017. Just a year later this milestone more than tripled as the newest all time high was established at $64,863.10, on 14 April 2021. In the month that followed the price has traded between $50,000 and $58,000, dropping to a recent low of ~$45,000 on 17 May following a series of Elon Musk tweets.
Bitcoin’s Price Performance This Year (2021)
Opening the year at an impressive $29,000 Bitcoin was already on a winning streak, but that was only the beginning.
In January, the price surged to a (then) record of $42,000 before experiencing a mass sell off. In a matter of days the price fell 26% to $31,000, scraping a whopping $150 billion off the entire crypto market’s value. The downtrend didn’t last long, as the institutional investment wave that started in late 2020 continued. As new players proceeded to pour into the market the price soon recovered and for the most part remained about the $30,000 line.
On 8 February following an announcement that Tesla had invested $1.5 billion in the market, Bitcoin went on another wild ride hitting a new record high ($47,573). Tesla stocks also got a taste of the Bitcoin effect, with stock prices increasing more than 2% just that morning. Following the news, many more institutional and retail investors entered the market and the price continued to climb. By 21 February, the price hit a new record at $58,112.
After severe sell offs and mild rallies between, Bitcoin opened March trading at $46,472. This month saw Wall Street firms like Goldman Sachs and Morgan Stanley increase their crypto product offerings while other large firms like Fidelity filed Bitcoin ETF applications.
By 14 March the cryptocurrency was trading at a record $61,243. After a subsequent sell off, Bitcoin was still up 30% that month. This month also witnessed a mild market crash following Tesla selling off 10% of their portfolio. The company claims it was confirming market liquidity.
April witnessed the first down month for Bitcoin since September 2020 alongside dwindling market dominance levels that haven’t been seen since 2017. Of course, this wasn’t going to stand in the way of another all time high, with Bitcoin reaching $64,863.10 on 14 April, the same day that Coinbase went live with their stock market debut.
Following this the price of BTC dropped below $50,000 and network transaction fees became exorbitant, with an average transaction fee of $63 (recorded on 21 April). The market closed 2% down at the end of the month, trading at $57,015.
May started off with sideways trading around the upper $50,000 levels, but subsequently crashed below $50,000 following a tumultuous string of announcements from Tesla CEO, Elon Musk. After offering Bitcoin as a payment option in February, Tesla reversed the offer citing that due to the environmental impact (electricity usage relying on fossil fuels) the company would no longer be accepting Bitcoin as a payment method.
Musk went on to spew out Tweets upsetting what has largely become known as Crypto Twitter, and the price continued dwindling. At the time of writing Bitcoin is trading at $45,578.
What Are Industry Insider’s Predicting?
As of May 2021, despite the current market crash the cryptocurrency is up almost 365% year to date. Industry insiders were left with a new array of stats as according to historical data April has long since been a good month for Bitcoin due to it being the end of the tax year in the UK and US. While April highs didn’t hold out this year, the notion did flow into May before being abruptly put to a halt by Musk.
For background, Danny Scott, the chief executive of crypto exchange CoinCorner elaborates: "There have only been two negative Aprils since Bitcoin began—in 2014 (-6%) and 2015 (-4%)—which is tied coincidentally with the following month of May with only two negative months—2015 (-1%) and 2018 (-18%)—so maybe there is some momentum and truth to take from this."
April also marked the direct listing of Coinbase on NASDAQ, an event that many Wall Street investors have had their eye on, creating further exposure for the crypto industry. So where could Bitcoin go from there? Jon Pearlstone of CryptoPatterns contributed some market insight saying that “This rally is likely to meet the next resistance level at $65,000” adding that “there is pattern resistance in the $77,000 range, with little to stop Bitcoin above that price until the psychologically key level of $100,000.”
Despite the current market dip, we haven’t witnessed a sharp decline in the price as witnessed with the previous all time high in 2017. This is due to strong institutional investment and recent Wall Street interest, indicating that users buying Bitcoin are holding as an investment and not inexperienced users looking to make a quick buck. Instead, price peaks have been met with an expected sell off followed by another increase. Insiders have speculated that the BTC value could reach $100,000 in 2021, and reach as high as $300,000 by 2022.
Is It Too Late To Invest In Bitcoin?
The unanimous answer is no, it is never too late. The dip also presents a perfect time to get in the market, something to consider. While the price might still seem “high”, remember that the digital currency is divisible by 100 million, allowing anyone to buy a small portion as opposed to having to buy 1 full Bitcoin. Through Oobit, users can buy as little as $20 with a payment option of their choice, from credit or debit card to Apple or Google Pay.
With insiders predicting another surge in price, we have long since moved on from the myth that Bitcoin is just a bubble and instead entered a new phase of adoption, one supported by large firms. Another reason why it is not too late to invest in Bitcoin circles around the fact that it has a limited supply.
Due to the way in which it was designed, there will only ever be 21 million coins created, and at present 18.6 million are in circulation (89%). While the last Bitcoin is expected to be mined in 2140 giving you ample time to invest, be sure to do it before the price enters a new trading bracket.
If you’d like more reasons on why to invest in Bitcoin in 2021, see our 5 key points here.
Enter The New Monetary System
Whether you’re looking to buy Bitcoin as a medium of exchange or as an investment, the cryptocurrency has made wild leaps in terms of market perception and adoption over the last few years, the past several months being the most significant.
If you decide to make use of the seamless convenient buy Bitcoin option at Oobit, consider the trading potential as the platform gives traders exposure to a large range of cryptocurrencies, all through the use of a credit or debit card and integrated wallet.
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