BTC (Bitcoin), the grandfather of all digital assets has had one of the biggest years. From a $9,500 low at the beginning of the year, the cryptocurrency has increased more than 200% in value this year alone. Given the political and economic trouble, many countries have found themselves in this year, it makes sense that a currency that’s not being issued or regulated by any one country should be the winner.
Bitcoin and Black Friday discounts
The biggest story in the cryptocurrency world over the weekend was how it performed. During the Black Friday weekend, Bitcoin’s prices fell to $16,300, which was the lowest it had been for several weeks. However, in the days following, the digital currency jumped to $17,000, beginning the climb that has gotten to $19,000 as of December 4th. Pundits observed that maybe it was a Black Friday discount that allowed people who wanted to jump into the gravy train not to be left behind. Barry Silbert, the CEO of Grayscale, cheekily hoped that people had stocked up Bitcoin as the Black Friday Bitcoin sale was over.
During this time, Bitcoin’s value had risen to $18,550, meaning that investors still had time to make some money. Multiple platforms gave their users opportunities to buy Bitcoin at discounted prices. Exchanges such as Binance were very generous to new guests on the platform. On this special day, new users were able to buy digital assets for as low as half the product’s original price. The platform further incentivized users to spend money on the platform by giving special discounts to people who fulfill certain criteria. For instance, Binance offered a 20% discount off the Bitcoin price for people who spend more than $1,000 on the site in a bid to upsell users on the platform.
Other crypto firms, such as TradingView, which offers a premium analytic service for people looking to trade on various platforms, also had quite the discounts. Up to 60% discount for anyone who wanted to join their trade analysis platform. During this period, pro cryptocurrency pundits were also quite loud. One of the most influential people in institutional investing even tweeted “#DropGold”. This means it was better to buy Bitcoin than traditional safety assets such as gold and other precious metals.
An opportunity for investors
This year has been one of the most favorable for cryptocurrency and blockchain technology as a whole. Although Bitcoin’s prices have steadily risen, it’s still volatile enough to make money for investors. This year, institutional money, hedge funds, and financial managers are all backing up the altcoin. While some people believe that the cryptocurrency cannot surpass the $20,000 mark, others are banking on it. Although many experts say that once the price reaches $20,000, most people holding this crypto will sell. When a lot of people decide to sell altogether, the market adjusts itself with lower numbers to account for the sudden loss of demand. Additionally, several industry-disrupting movements have come up during this time. DeFi is set to be one of the biggest disruptors of the banking sector in 2021. As more people are exposed to these applications and seeing the benefit, so will the value of their underlying technologies.
Many analysts say that although we have seen a lot of movement in cryptocurrencies over the last couple of weeks, there is a long way to go. When Grayscale, Square, and PayPal decided to get in on the fun, prices shot up because of the renewed commitment it brought to the industry. As a new week begins, we can expect to see prices go up. Quant analysts say that there is simply not enough of the cryptocurrency to go around. It means that existing firms will have to scramble for whatever is on the market, which should further push prices up.