In 2021, cryptocurrency will enter the mainstream and grow exponentially. This rapid growth can be attributed to a lack of volatility, stable supply/demand dynamics that have never been seen before in history, and general adoption by fiat institutions such as banks. However, these are all promises for the future which cannot be confirmed until we get there. What does this mean for companies like Footprint Analytics? It means the time is now to invest capital into building out your business on top of blockchain technology infrastructure so you don’t miss out on any potential opportunities when mass market demand comes up from bitcoin’s mid-term price surge
The most critical year for BTC since its start, 2021, saw record highs and long-awaited institutional adoption.
According to Footprint Analytics, the price of bitcoin went from $29,022 at the start of 2021 to $67,674 on November 8, a 133 percent rise.
The whole coin price fluctuated between $45,000 and $60,000 throughout this time.
BTC Price in 2021, according to Footprint Analytics
BTC’s volatility influenced the whole market since it is the biggest cryptocurrency by market capitalization.
BTC trade volume was about $60 billion in the first half of 2021. Volume declined to about $20-40 billion in the second half of the year. This had a significant influence on policy events.
Token BTC Trading Volume – Footprint Analytics
The following are some of the highlights from the previous year:
- Tesla (temporarily) allows Bitcoin payments.
- El Salvador has declared Bitcoin to be legal tender.
- MicroStrategy increased their Bitcoin holdings to 122,000BTC, a threefold increase.
- In Q2, Goldman Sachs will offer customers bitcoin investment vehicles.
- Nubank, which wants to launch a Bitcoin ETF, has received a $500 million investment from Berkshire Hathaway.
- Worldwide, there are more than 24,000 bitcoin ATMs.
In 2021, we’ll look back at the key events that occurred in each of the four quarters of the year.
Daily BTC Price Growth Rate – Footprint Analytics
Tesla Accepts Bitcoin Payments in Q1
Tesla accepted Bitcoin as a means of payment for its goods for a limited period on Feb. 8, and also purchased $1.5 billion in Bitcoin.
This propelled BTC to a new high of $56,000, drawing the attention of institutional investors and venture capitalists all across the globe.
Tesla presently possesses 42,902 BTC, ranking 2nd among listed corporations owning BTC, worth at $1.84 billion, or 0.204 percent of the entire BTC supply of 21 million, according to Bitcoin Treasuries statistics.
Bitcoin Treasuries – Bitcoin Treasuries – Bitcoin Treasuries – Bitcoin Treasuries (Public Companies that Own Bitcoin)
BTC Price Drops in Q2 as Currency Faces Difficulties
On May 18, the People’s Bank of China and key authorities released a joint statement prohibiting operations linked to virtual currencies, and Chinese banks followed suit, stating that transactions using virtual currencies such as BTC were forbidden.
The Chinese authorities prohibited mining on June 9, causing BTC to drop from $59,000 to $34,000. Furthermore, Tesla withdrew its intention to accept Bitcoin payments on May 13 owing to worries about the digital currency’s effect on the environment.
Q3: El Salvador Legalizes Bitcoin (BTC)
El Salvador was the first nation to declare Bitcoin legal cash on Sept. 7, allowing people to download the government’s digital wallet for free and avoid paying capital gains tax on the cryptocurrency. People will be able to use Bitcoin to do business, pay taxes, and get paychecks.
Additionally, anyone who put 3 BTC in the country’s wallet will be eligible for Salvadoran residence. The move is seen as a watershed moment in BTC’s history.
Bulgaria, Finland, and Ukraine are among the nations and governments that now possess Bitcoin, according to Bitcoin Treasuries statistics.
Screenshot Source – Bitcoin Treasuries(Countries & Governments that Own Bitcoin)
Q4: The first Bitcoin ETF in the United States is launched.
The first Bitcoin futures ETF was authorized in the United States in October, followed by the launching of the Valkyrie Bitcoin ETF in November. Van Eck didn’t create its own bitcoin ETF until November of last year.
In addition, after the China ban, computing power for mining shifted to the United States, Russia, Canada, and other nations in the fourth quarter, resulting in new all-time highs.
Grayscale Bitcoin Trust currently possesses 648,069 bitcoins, or 3.086 percent of the total 21 million bitcoin supply. All other entities have a coin value of less than 50,000 coins.
Bitcoin Treasuries – Bitcoin Treasuries – Bitcoin Treasuries – Bitcoin Treasuries (ETFs that Own Bitcoin)
While BTC has been exchanged among smaller retail investors and crypto enthusiasts for the previous ten years, the year 2021 will see whole nations and established institutional players enter the market.
BTC’s price fluctuated a lot during the year, but it eventually settled at $40,000 at the conclusion of the year.
By 2022, bitcoin seems to have reached a stage where one country’s policy or one person’s viewpoint can no longer influence its price trend.
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Footprint Analytics – 2021 BTC Dashboard is the source of the data.
Our Year in Review series continues with this piece.
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Posted in: Analysis, Bitcoin
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