Discount on BTC: When is the Right Time to Buy Bitcoin?
Despite the market meltdown in May, Bitcoin’s price has grown by 90% this year, making BTC the most profitable asset in 2021. In the article, we will tell you which contributing factors have driven the rise of the first cryptocurrency in the last 6 months, and what do experts have to say regarding the tendencies of bitcoin’s price for the next few years.
Why Bitcoin has gone up: BTC price analysis for the past 6 months?
Rate of return comparison of Bitcoin with several traditional investment instruments in 2021. Source: TradingView
For the past six months, Bitcoin has been recovering from the collapse of the cryptocurrency market at the beginning of May 2021, instigated by the cracking down on mining in China. The ban and the sharp criticism of digital assets by China’s government led to a dramatic drop in bitcoin hashrate by 50% and wreaked havoc on the market, causing a plunge of BTC’s price from $60 to $30 thousand.
The negative trend persisted until the middle of June, but then the price of the first cryptocurrency began skyrocketing again. First, it reached 52 thousand (June 21 – September 6), and then, after a short but significant correction – from $42 to $56 thousand (September 29 – October 11).
According to analytics of investment bank JPMorgan, Bitcoin was able to recover thanks to the return of institutional investors which have observed several positive aspects:
- The assurance of Fed Chair Jerome Powell that he is not going to follow in the footsteps of China and ban the use and mining of cryptocurrency.
- The rapid growth in the popularity of Lightning Network and solutions for P2P payments, that have been facilitated by the implementation of bitcoins into the world economy.
- Raised concerns about inflation growth amid institutional investors and large private companies.