On Christmas eve, the value of Bitcoin rose to $51,000 (roughly Rs. 38.27 lakhs) and touched its highest level in more than two weeks. The world’s largest and oldest cryptocurrency has risen by about four percent in the past couple of days.
On Friday, in Asian trading, at one point the value of the cryptocurrency had even touched $51,524 (roughly Rs. 38.67 lakhs). This rise was a result of wider positive sentiment in financial markets. In 2021, so far, the digital asset — famed for its volatility — has risen by about 76 percent. In November, Bitcoin had lost more than $18,000 (roughly Rs. 13.50 lakhs) in value after hitting a record high of almost $69,000 (roughly Rs. 51.77 lakhs) earlier in the month.
The price movement of Bitcoin has piqued many people’s interest throughout the last decade. So far, 2021 has been an eventful year for many cryptocurrencies, with Bitcoin and its price leading the way.
The cryptocurrency’s price touched new highs in April and May. However, the excitement didn’t last for long, with Bitcoin entering a downward phase. The trend remained gloomy till the first-ever Bitcoin futures exchange-traded fund (ETF) made its debut in the New York Stock Exchange (NYSE) in October. It goes by the ticker name of BITO. This was a landmark moment 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 cryptocurrency’s value. But then, El Salvador recognised Bitcoin as a legal tender, and on September 7, became the first country to use the cryptocurrency as a means of exchange for goods and services. In a way, El Salvador’s step could also encourage other countries in the region to take a similar leap.
In November, after Bitcoin’s price touched almost $69,000 (roughly Rs. 51.77 lakhs), investors gained big profits. But their happiness was short-lived with the World Health Organization (WHO) declaring the outbreak of the Omicron COVID variant. That again took a toll on cryptocurrency prices.
Now, with this fresh rise in price, will Bitcoin’s value continue to surge, or will there be another fall? As of now, that remains an unanswered question, which only time can tell.
Meanwhile, Ether, the second-largest coin in the world, was trading $4,100 (roughly Rs. 3.07 lakhs).