On Christmas Eve, Bitcoin’s value soared to $51,000 (approximately Rs. 38.27 lakhs), reaching its highest level in more than two weeks. The world’s largest and oldest cryptocurrency is up about four percent in recent days.
As of Friday, in Asian trading, the cryptocurrency’s value had reached $51,524 (about Rs. 38.67 lakhs) at one point. This increase was the result of broader positive sentiment in the financial markets. In 2021, the digital asset – famous for its volatility – is up about 76 percent so far. By November, Bitcoin had lost more than $18,000 (about Rs. 13.50 lakhs) in value after hitting an all-time high of nearly $69,000 (about Rs. 51.77 lakhs) earlier in the month.
Bitcoin’s price movement has sparked the interest of many people over the past decade. So far, 2021 has been an eventful year for many cryptocurrencies, with Bitcoin and its price leading the way.
The price of the cryptocurrency hit new highs in April and May. The excitement did not last long, however, as Bitcoin entered a downward phase. The trend remained bleak until the very first Bitcoin futures exchange-traded fund (ETF) made its debut on the New York Stock Exchange (NYSE) in October. It goes under the ticker name BITO. This was a milestone for cryptocurrency and was seen as another step closer to mainstream investing.
In between, all those discussions about energy consumption to mine Bitcoin also had an impact on the value of the cryptocurrency. But then El Salvador recognized Bitcoin as legal tender and on September 7 it became the first country to use the cryptocurrency as a medium of exchange for goods and services. In a way, El Salvador’s move could also encourage other countries in the region to make a similar leap.
In November, after the price of Bitcoin reached nearly $69,000 (about Rs. 51.77 lakhs), investors made huge gains. But their happiness was short-lived when the World Health Organization (WHO) announced the outbreak of the Omicron COVID variant. That again took a toll on cryptocurrency prices.
Now, with this new price hike, will Bitcoin’s value continue to rise or will there be another decline? As of now, that remains an unanswered question, which only time can tell.
Meanwhile, Ether, the second largest coin in the world, was trading at $4,100 (about Rs. 3.07 lakhs).