The crypto market cap has tremendously increased over the past few years from the time of its inception. In just more than ten years, the industry’s total market cap is hovering at $2.1T in data by Coinmarketcap. BTC (bitcoin), the most dominant cryptocurrency despite its recent price crash has a market cap of $832,653,001,777 with its price at $44,169.52 in recent data by Crypto.co. Its market cap is below Meta’s (formerly Facebook) $927B and but higher than Berkshire’s $716.2M.
The rise in the industry’s market cap was fueled by institutional investors’ adoption, the influx of retail investors, and even state adoption like El Salvador. The active promotion of influential personalities in the crypto industry like Elon Musk, Michael Saylor, Jack Dorsey, and Barry Silbert has pushed the prices of cryptocurrencies to soar even more. Despite going through seemingly insurmountable challenges like China’s implemented ban on crypto-related activities, the crypto market had shown strong signs of resilience.
Since December 2020, the price of BTC (bitcoin), the first cryptocurrency invented has been on a price rally. On Dec. 26, BTC (bitcoin) breached the $25K mark recording an all-time high in its history. It was the first time that the cryptocurrency has reached a new high and even surpassed its previous all-time high of $19,834.93 in December 2017. From then on, BTC (bitcoin) price continued to soar and sailed uncharted waters.
On April 14, BTC (bitcoin) soared to a new height and recorded another all-time high after it almost surpassed the $65K mark with its price at $64,859.81 in data by Crypto.co. Prices of other major cryptocurrencies also spiked at that time. Crypto enthusiasts have long predicted that the digital asset will finally reach the $100K mark. With BTC (bitcoin) recording an all-time high, will this prediction finally be realized?
Faced Against an Insurmountable Foe
Everything was smooth sailing for the crypto market at the start of 2021. The whole industry was in ultimate euphoria when BTC (bitcoin) reached almost $65K. Everyone was expecting that the market’s price rally will continue with bitcoin’s seemingly unstoppable upward trend. The bull run is here to stay.
On May 18, China implemented a ban on financial institutions and payment companies from providing services related to cryptocurrency transactions. The Chinese government also issued a warning on investors against speculative crypto trading. On the same day of the announcement, a flash crash occurred as the result of a massive sell-off. The price of BTC (bitcoin) dropped to as low as $30K as investors succumbed to FUD wiping almost $1T of the entire industry’s market cap in just a day. But the price has slowly climbed to $38K and is on its way to recovery. Or so everyone thought.
On May 21, the Chinese government came with another blow after Vice Premier Liu He and the State Council announced a crackdown on all crypto-related activities like mining and trading in the country. Due to the announcement, the BTC (bitcoin) price dropped by 22.94% from its price of $41,252 to $33,552 in a data by Crypto.co. And the market crash caused by China’s crypto ban has turned into a series. Is the bull run finally over? Crypto skeptics strongly suggest that the crypto bull run has finally ended and the bear season has already started. With BTC (bitcoin) price in a downward trend as the metric, the statement seems true. Prices of altcoins have also followed suit. And the crypto market succumbed to darkness with prices of most cryptocurrencies plummeted losing almost 50% of their value. Although some investors engaged in sell-offs, most investors hold on to their digital assets on their portfolios.
But alas, during the Bitcoin 2021 held in Miami in June, bitcoiners flocked together to show their support for the cryptocurrency and the entire market is alive again. And on that particular event, President Nayib Bukele announced to all the attendees that El Salvador will be adopting Bitcoin as a legal tender. The country became the first-ever country to adopt the virtual asset as legal tender in the entire history of crypto. Although the announcement was met with criticisms, it was a success for the entire crypto industry having won a country on its side. On June 8, the Bitcoin Law was passed after receiving 62 out of 84 of the legislature’s votes and this resulted in a 5% increase in the price of the virtual asset to $34,239.17 at that time.
As the market slowly recovered from its downfall, BTC (bitcoin) along with other digital assets continued on its price swings as a result of China’s crackdown, US Fed’s policy, and comments from influential personalities in crypto. There has been a divided sentiment whether the bull run is now over or it is just starting.
A Breakout From the Fall
Crypto proponents like Microstrategy founder and CEO Michael Saylor continued to express their support for the industry. He also revealed that he views every dip as an opportunity to buy crypto, particularly BTC (bitcoin). In May, Saylor along with bitcoin miners from North America created the Bitcoin Mining Council which will “promote energy usage transparency and accelerate sustainability initiatives worldwide.”
Twitter founder and CEO Jack Dorsey, a known bitcoin maximalist, is also a vocal supporter of virtual assets.
The rise of DeFi products and the NFT market has been vital for the survival of the market amid critical times. On Oct. 15, after months of resilience and tenacity of crypto investors, BTC (bitcoin) surpassed the $60K mark with its price at $62,889.98. On Oct. 20, it has surpassed the $65K mark and recorded an all-time high with its price at $66,980.66. And on Nov. 10, the most dominant virtual asset once again set another all-time high at $68,978.64 which is 2.9% higher than its previous all-time high. ETH (ethereum) also recorded an all-time high along with BTC (bitcoin). The launching of ProShares Bitcoin Strategy ETF, the first Bitcoin ETF for US investors in October contributed to the price surge of cryptocurrencies. The approval of the spot exchange-traded funds (ETFs) for the two largest cryptocurrencies, BTC (bitcoin) and ETH (ethereum) by the Australian government initially triggered the spike in the prices of crypto assets. The introduction of the new regulated financial product in crypto has boosted the confidence of investors into entering an industry at odds with regulatory bodies.
Though regulatory bodies continue to be at odds with cryptocurrencies, with continued support from major crypto proponents including adoption by institutional investors that view crypto-assets as lucrative investments and BTC (bitcoin) as a haven against inflation and a store of value, these digital assets will continue to surpass every single hurdle along the way. Is there any indication that the bull run is already over? The answer is a resounding “no”. According to analysts, the euphoric bull run may happen anytime soon. And the BTC (bitcoin) projected price at $100K will soon happen. In a report, Kate Waltman, a New York-based certified public accountant who specializes in crypto commented on the matter:
“The most knowledgeable educators in the space are predicting $100,000 Bitcoin in Q1 2022 or sooner.”
But the recent consecutive market crashes leave investors wondering if the anticipated euphoric bull run will be happening sooner than expected or could be after the predicted “big dip.” Charts don’t lie as they say. But if the big dip will be happening before the euphoric bull run, this is definitely something to look forward to. Will investors exit the crypto market or will hold on to their digital assets and wait for the storm to pass? Uncertainties can shake almost everyone and only the strongest are likely to stay.