The year 2020 has been an extraordinary ride for anyone invested in, or even just watching, the bitcoin market. The world’s most valuable virtual currency in December traded at more than $23,000.
When the U.S. first began grappling with Covid-19 in early March, Bitcoin was below $4,000. For owners or sellers, it’s a gut-twisting source of gains and losses. For those (like me) on the sidelines, it’s an entertaining market show, with tinges of jealousy and dizziness.
Very Volatile Asset and Investment
Estimates vary wildly as to where the price of Bitcoin will land. Some say that it may reach $60,000 by next year, others believe it might even break $100,000.
But some experts warn that Bitcoin is still a very volatile asset that’s likely to keep experiencing ebbs and flows. In the next year we could see fluctuations as big as 20-30% in BTC value.” As a partner who has traded the rise and fall and rise of the currency over many years, he has the experience to back this up.
However, crypto trading experts are largely optimistic about the future “These fluctuations are not going to be enough to slow it down. Bitcoin will likely break $50,000 in 2021.”
The market trend is clear. Despite Bitcoin’s variability, new bull cycles see the highs go higher and the lows get higher as well. This is to say that Bitcoin keeps breaking its previous records and stabilizing at higher prices after its drops.
The woes in the cryptocurrency industry are evident. There is no denying that. However, the founder and CEO of Abra, Bill Barhydt, believes that there is light at the end of the tunnel. During an interview Barhydt said:
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“I discuss with individuals who run hedge funds, individuals that have high net worths and commodity speculators. While others see the volatility of the cryptocurrency industry as a risk, these people see it as a huge opportunity. The minute they decide to take advantage of this opportunity, all hell will break loose.”[/perfectpullquote]
Towards the end of last year, the digital currency industry saw a surge in market value gathering up to $800bn in total market capitalization. However, the glory didn’t last long as the total market capitalization for cryptocurrency is presently below $300.
Some factors that have contributed to the fall in price include but are not limited to the recent regulatory pressures, and the ban placed on cryptocurrency related ads by major internet corporations like Facebook, Google, Yandex and Twitter. Irrespective of all downfalls till 2020, Barhydt is confident that the cryptocurrency industry will be better.