The value of digital currencies will accelerate in the beginning of 2021, after the US electric car maker Tesla announced in February that it invested $ 1.5 billion of its assets in Bitcoin, and Mastercard and Bank of New York Mellon took steps to facilitate the use of cryptocurrencies. an increase was recorded.

Bitcoin, which is the most preferred by investors among cryptocurrencies, rose above the level of 55 thousand dollars after the decisions of the companies in question at the beginning of the year. The fact that the market value of the cryptocurrency reached 1 trillion dollars in the same period was described as an important “turning point” among investors.

China steps up restrictions on cryptocurrencies, El Salvador recognizes as ‘legal currency’

Towards the middle of the year, the news from China regarding the crypto money markets negatively affected the rise in cryptocurrencies. China’s ban on local financial institutions and payment systems from providing crypto services in May caused a decline in cryptocurrencies. China further increased the pressure on cryptocurrency trading, declaring all cryptocurrency transactions “illegal” in September.

Despite the restrictions imposed in China on cryptocurrencies, the Central American country El Salvador became the first country to officially introduce Bitcoin. After El Salvador’s President Nayib Bukele’s bill to recognize Bitcoin as a “legal currency” was passed by Congress in June, Bitcoin began to be used as a legal currency in the country in September.

First ETF based on Bitcoin futures contracts begins trading in the US

In the US, where authorities have taken a cautious stance towards cryptocurrencies, the first exchange-traded fund (ETF) based on Bitcoin futures contracts began trading on the New York Stock Exchange (NYSE) in October. The launch of ProShares’ Bitcoin Strategy ETF with the code “BITO” had a positive impact on the cryptocurrency markets.

In November, the US Securities and Exchange Commission (SEC) announced that it had not approved asset manager VanEck’s application for a spot Bitcoin exchange-traded fund (ETF).

Coinbase, one of the world’s largest cryptocurrency exchanges, started trading in the Nasdaq index, which is dominated by technology companies, on the New York private stock market in April.

Wall Street banks such as Goldman Sachs have also intensified their work towards Bitcoin.

Calls for regulation intensified

While Bitcoin, which is not affiliated with any central bank or official institution and produced completely virtual, continues to be at the center of the discussions, US Treasury Secretary Janet Yellen and European Central Bank (ECB) President Christine Lagarde described Bitcoin as a “speculative investment tool”. continued.

While financial authorities accelerated their work on cryptocurrencies with the widespread use of them and the increasing interest day by day, the calls for regulation for virtual currencies intensified.

Many central banks, including the US Federal Reserve (Fed) and the ECB, have put digital currencies on their agenda.

Bitcoin, which peaked at $ 69 thousand in November, saw below $ 43 thousand in December

Developments throughout the year caused sharp fluctuations in the prices of cryptocurrencies.

The price of Bitcoin, which saw the peak of the year by rising above $ 69 thousand in November, fell below $ 43 thousand in December.

Despite all the fluctuations, Bitcoin, the world’s most popular cryptocurrency, has gained more than 70 percent since the beginning of 2021. The price of Bitcoin, which was around 30 thousand dollars at the beginning of this year, was recorded at the level of 48 thousand dollars today.

Ethereum has gained over 440 percent

Ethereum, one of the “alt coins” that stands out in the rapidly developing crypto money world, also showed a rapid rise this year. The price of Ethereum, which was around $ 730 at the beginning of this year, rose to $ 4 thousand in the last days of the year. Ethereum has gained over 440 percent since the start of 2021.

According to CoinGecko data, the market capitalization of all cryptocurrencies has increased by approximately $1.5 trillion this year to over $2 trillion.

Bitcoin’s market share is declining

With the effect of macroeconomic concerns and profit sales in the global markets, sharp losses have been recorded in the crypto money market recently, while experts warn that the market may move towards a decline.

Increasing scrutiny from regulators and intense price fluctuations have recently weighed on prospects for the cryptocurrency Bitcoin.

As the cryptocurrency industry expands, Bitcoin’s market share is shrinking and other digital currencies such as Ethereum

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Cryptocurrencies are headed for losses. With the end of the year and the Christmas holidays in some countries around the world, the habit of switching to cash in money markets is taking place this year as well.

The wave of sales that started with the leading cryptocurrency Bitcoin continues. Bitcoin, which entered the bear market, could not catch a strong rise. Bitcoin, which fell from $ 69 thousand in November to $ 45 thousand today, lost 35 percent to its investors. Bitcoin started 2021 at $29,132. At the point we have reached today, it is trading at the level of 46 thousand dollars. Thus, it has gained 58 percent since the beginning of the year. If we compare it to its historical high of 69 thousand dollars, this rate rises to 138 percent.

Iran’s ban on cryptocurrency mining for a while to meet its energy needs, China’s war against cryptocurrencies, the possibility of the Fed’s interest rate hike, the steps taken by central banks against global inflation, in addition to the regulatory efforts of money market authorities against cryptocurrencies around the world. With the end of the year and the beginning of the Christmas holiday, the complacency in the crypto money markets increased.

Although Bitcoin bulls turned to buy this week and showed the level of 52 thousand dollars, albeit for a moment, the bears again managed to take the dominance and erase the gains. When the bulls regress to the support of $ 45,000, although they try to dominate in the buying direction, sufficient momentum cannot be gained.

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