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2021 is undoubtedly the year of Bitcoin. This cryptocurrency managed to break records and rise in value higher than anybody thought. The initial indicators stated that Bitcoin will break the 2017 record in value and top $20,000 at the end of 2020, but that it will drop right after it. But, after it managed to maintain its stability, experts thought that it can reach a maximum price of $50,000.
Halfway through 2021, Bitcoin has exceeded $60,000 at one point and now fluctuates between $40,000 and $50,000. To make things even sweeter, experts believe that it can rise as high as $100,000 by the end of the year.
That is exactly the topic that we wanted to discuss. We are going to take a look at the main factors that managed to influence Bitcoin’s price in 2021 and break down the details. But first, let’s see how people actually make money with Bitcoin and why Bitcoin rose so much.
Making Money With Bitcoin
Bitcoin trading is the soul of making a profit with this cryptocurrency. After traders earn Bitcoins through mining or buying, they have 2 options for selling them – Bitcoin ATMs or trading sites. Since trading sites are far superior, they are the most commonly picked option.
To gain access to their services, traders just need to register. The process is very fast and simple and after it’s completed, then they are required to verify their identity by providing the trading site with a valid ID, passport, or driver’s license. Once the account is verified, they are free to dive into the world of trading.
Every Bitcoin trading official site that is reputable provides its traders with an additional service. It uses AI systems that analyze the market and uses the data to make accurate predictions on Bitcoin’s future price. The best part is that these results are shared with the traders. Now, profit is not guaranteed with this service, but the chances of making money are increased.
Advanced services such as this one are the reason why Bitcoin trading is easier than ever and why some research showed that there may be as many as 100,000 millionaires that made their fortune by trading with this cryptocurrency.
Now, let’s take a look at the factors that allowed Bitcoin to rise so high.
Why Bitcoin Rose So Much
The Recent Halving Event
Halving events is the first factor. If you want to check the history of Bitcoin halving, you will see that after each halving event ended, it took Bitcoin one-and-a-half years to drastically rise in value and reach a peak. The last halving event was in May 2020. A lot of time has passed since and that is the reason why Bitcoin rose so much.
This halving event is the reason why experts believe that Bitcoin’s price can rise as high as $100,000 in the last quarter of 2021.
The Massive Institutional Interest
2021 has recorded a massive spike in institutional interest. Many companies started accepting Bitcoin as a payment method, with the most popular one being Tesla. Back in February, this car manufacturer invested $1.5 billion in Bitcoin and many companies followed suit. The high institutional interest led to better stability, which ultimately affected the price of 1 Bitcoin.
There are a few other indicators that led to Bitcoin’s rise. First of all, Bitcoin’s hash rate finally stabilized in 2020. Not only that, but the volatility rate was at its second-lowest point during that period. The lowest volatility rate was recorded in 2017, just before Bitcoin spiked and broke the record then. Finally, Bitcoin was getting scarcer. All of these factors influenced its value and allowed it to break the records.