Why has Bitcoin increased so much this year (why will Bitcoin decline at the end of the year)

Why does Bitcoin increase so much this year? Because institutional investors are more and more enthusiastic about Cryptocurrency. Since December last year, the Grayscale Bitcoin Trust Fund (GBTC) has purchased over 10000 Bitcoins in April, and has grown nearly tenfold since late February 2018 According to Glassnode’s data, there are currently $1.5 billion worth of assets locked in DeFi, some of which are “mined” through grayscale mining This means that if we consider Bitcoin as an investment tool, this trend may continue. Why has Bitcoin gained so much this year? Why did BTC perform poorly in 2020

Due to the impact of the COVID-19 epidemic, people have to hoard cash in order to obtain higher prices. Therefore, many people deposit their funds on Bitcoin. But this money is not used to pay wages or money – they can use it to buy things to make money. When the economy is negatively impacted, this approach becomes less effective. Bitcoin is currently in the process of rising. From early 2020 to early 2021, the price remained around $50000. But as the US government continues to print trillions of economic stimulus bills and the Federal Reserve’s ongoing quantitative easing policy, global markets are experiencing a significant pullback, but Bitcoin has not rebounded as before. On the contrary, in early March 2019, Bitcoin quickly fell and reached a historic high after breaking through $8000. However, compared to other mainstream digital currencies, its performance is not good. Despite some surprising events recently, such as the decline of over 80% in Bitcoin from the beginning of this year to the present, Bitcoin has remained between $7000 and $7800. In addition, Bitcoin has also been steadily rising, reaching its largest daily decline since 2017 in recent weeks. Although short-term corrections may occur at certain times, it still largely indicates this. At the end of 2019, Bitcoin reached $20000 and then returned to above $30000 Before the end of 2019, Bitcoin briefly fell below its historical high of $20000 (when it was close to $14000), and in the following months, Bitcoin almost doubled. Until today, this level has remained largely unchanged and it seems that the upward trend has not stopped

Why Bitcoin Will Fall at the End of the Year

According to Cryptovest, the recent price drop in Bitcoin has led to a sell-off in the entire market.

. For most of the time since March 13th, Bitcoin prices have been on a downward trend; In early November, Bitcoin fell to over $20000 and then began to rebound. But after the beginning of this year, there was a decline. According to Cryptocurrency analysts and traders, “if the price of Bitcoin falls below the 10000 dollar threshold again at the end of the year, it will further affect the market.”