Will Bitcoin Rise Again?
At times, investing in Bitcoin feels like gambling on GClub. However, instead of playing on a leading online casino in Asia that has been operating for more than a decade, you’re entertaining an invisible cryptocurrency with a surprisingly volatile track record of ups and downs. The digital tender offered a remarkable performance in 2020 when it rose by more than 300%, despite the negative effects of COVID-19 on the global economy.
In fact, Bitcoin hit an all-time high in April 2021. In June 2021, its value then dropped below $30,000 for the first time since January, erasing those gains instantly. According to CoinMarketCap, Bitcoin’s price plummeted below $29,300 to shrink its value by 50%, but will the cryptocurrency ever rise to its former glory?
Bitcoin’s 2021 Crash
Various factors and negative rumours have affected Bitcoin, including the news about the Met Police seizing £180m of cryptocurrency under dubious circumstances. The bust led to the digital currency dropping by 3%, and this after Bitcoin had suffered a 10% blow as the Chinese government imposed both mining and trading sanctions on its activities in-country.
Bitcoin’s recent fall also followed a tweet in May from the Space X giant, Elon Musk. It claimed that Tesla would cease accepting cryptocurrency payments over environmental concerns. According to Musk’s information, Tesla would only accept tender like Bitcoin again when miners could produce at least 50% of the cryptocurrency using clean energy.
On June 7, Donald Trump also claimed that Bitcoin was a scam and that it was trying to beat the dollar as “the currency of the world.” Bitcoin’s price also dropped 8% after FBI agents recovered millions of dollars worth of Bitcoin from nefarious players, and banks responded in kind. For example, Starling Bank suspended cryptocurrency payments due to concerns about criminal activity.
Will Bitcoin Recover?
While it is difficult to predict, the chances are high that Bitcoin will recover and rise again. Its volatile nature plays into the trends, but if it rises too quickly, it could also plunge again fast. Its prices depend on speculation, and timing is not always on the side of unlucky investors.
Billionaire venture capitalist and Bitcoin investor Tim Draper believes that it will trade at $250,000 by the end of 2022 or early 2023, despite the wild swings in value. Bloomberg’s Crypto Outlook report echoed this sentiment, with significant gains expected by the end of 2021. The report evaluates various cryptocurrencies to predict their performance and advocates Bitcoin reaching $100,000 this year if things go smoothly.
Bitcoin’s Rise and Fall
After a tremendous performance in 2020, Bitcoin fell to almost half the price of its all-time highs only months before. Several factors contributed to the cryptocurrency’s crash, including China’s sanctions, Tesla’s change of heart, and public opposition from the United States’ former president. However, investors, analysts, and industry experts remain hopeful that Bitcoin will regain its momentum.
If you need to splurge on some entertainment while you wait, platforms like GClub will likely still be accepting cryptocurrency for years to come.