Where the name of bitcoin appears, the fluctuations like ups and downs commonly occur regularly. Sometimes the changes are high, which results in good revenues for the investors. In contrast, other times, this fluctuation lowers the value of bitcoins to a very low point, resulting in a sense of fear and disappointment among them. If you have been keeping track of the value of bitcoins, then you would have an idea that bitcoin’s value was recorded at its highest in the month of April 2021, which was almost $65,000. Everyone was predicting that it will just require a couple of months to reach $100,000 if the value gets raised in the same consistency. But the things that happened were totally opposite of it as the value of bitcoin has fallen from the highest point ever to nearly 50 percent in one single month.
These declining natures of fluctuations have broken a record of their own because bitcoin has neither experienced such decline nor expected by any experts. But at last, everyone should understand the fact it is a cryptocurrency, and the nature of cryptocurrency is highly volatile.
- The value of bitcoins on May 21 was reported at $40,846, which was much better as compared to two days before when it reached $30,000, making every investor disappointed. The credit of this crash is given to the statement that was released by the Chinese Government’s decision to impose the ban on Digital currency trading in the country. This made investors worried, and the majority of them took the decision to sell their bitcoins on the trading bitqt app.
- The other incident which resulted in a decline in the value of bitcoin was the tweet by the CEO of Tesla in which he mentioned about unacceptance of bitcoin payments by the individuals who want to buy a Tesla car. A few weeks ago, the announcement about Tesla started accepting the bitcoin payments as he had also invested $1.5 billion to buy the bitcoins. He mentioned that the ban is the excessive use of fossil fuels, which badly affects the environment. Yes, it is a true thing that bitcoin mining and transactions consumed a lot of power, but this announcement has resulted in an instant 15% fall in the value of bitcoins.
Have a look at some major ups and downs faced by bitcoins in 2021.
- The value of the bitcoins rose to approximately $40,000 on December 31, 2020, which was a good rise from $29,000 as it raised the confidence of investors towards the bitcoin. The next surge occurred after the investment of $1.5 billion in bitcoins by Tesla on February 8, 2021, along with the acceptance of payments at Tesla using bitcoins. The surge in the value of bitcoin was highly unexpected, but it reached almost $57,000 within a very short time. Then the steady rise was observed in the month of March when it crossed the mark of $60,000, and it was a great achievement which also resulted in the prediction like bitcoin will cross $100,000 within a very short time period. The rise continued till April and was reached the highest ever point of $65,000.
- The bitcoin started facing a decline in its value from May 10 as it was above $58,000 before that time. But the announcement made by Musk on May 13 resulted in the fall of Bitcoin’s value which was really very disturbing. Its value was fallen to $49,000 on May 14, which was a really, very big fall within a couple of days. It was dealing with a fall at that time, and suddenly, the news by the Chinese Government hit the market, which resulted in more decline in the value of this digital currency to $30,000.
Though the currency has started to recovery from reaching the normal point, the fluctuation in its value has proved that bitcoins value can be easily impacted by some tweets and global events, which has left everyone disturbed as there was a huge loss suffered by investors all over the world. Bitcoins and all other digital currencies are based on the open-source platform, which is the reason that these fluctuations occurred on a regular basis.