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The bitcoin price surged to a phenomenal $40,000-$60,000 recently. Investors’ trust is continuously increasing who believe in the future of bitcoin, and ultimately resulted in the rise of bitcoin price.
The Bitcoin journey started in 2009 initially with zero worth but 2021 has proven to be magical for crypto investors as the price of bitcoin raised to the highest of all the times in history, and it happened in the past year alone.
There are two main possible reasons behind this big rise of bitcoin that are observed.
- The continual entry of institutional players, family offices, hedge funds, and asset managers
- Secondly, the retail fear of missing out on FOMO.
If we look back, five years ago, in 2016, there were only 5 million active users with their accounts on crypto exchanges. But in last quarter, there were more than 100
million people with accounts on crypto exchanges. Highly remarkable!
Bitcoin vending machine company has observed a rise in investors over the past few months. Among which half are new to platforms. This is actually because of Bitcoin scarcity. The bitcoin production will continue until it hits its maximum range of 21 million bitcoins.
According to a recent study in the United States, two-thirds, two millennials out of three see bitcoin as a better store value than gold.
The price of bitcoin has already doubled only in the first few months of 2021, climbing from $30,000. This not only increased its mainstream adoption but also made it a $1 trillion virtual asset.
An incident is also observed when Tesla stopped accepting bitcoin as payment, resulting in the bitcoin price dropping by 40%.
Several analysts are trying to predict where the bitcoin price is expected to reach. According to a Bloomberg analyst, the bitcoin price may hit up to $400,000 in 2021.
Investing in cryptocurrencies for new investors can be crazy because they are not used to price fluctuation. There are risks associated with crypto investment. Still, cryptocurrencies are here to stay, and for bitcoin being the giant, we can expect a bright future.