The year 2021 was definitely a bull market, with Bitcoin (BTC) breaking the all-time high price bar several times this year. Total crypto market capitalisation has increased by %190 from the start of 2021, from just under $800 million to over $2.3 trillion today. In early November, it reached an all-time high of a little over $3 trillion. Also, Tether, UDS Coin, Terra USD, Binance USD, and Dai are the top five stablecoins in terms of market capitalisation.
🔅 Many countries have witnessed the establishment of a credible legal framework that has significantly impacted the crypto market and is gaining institutional support from major businesses.
🔅 The interest of ordinary people in cryptocurrency has skyrocketed this year, mainly because of opinion leaders, such as Elon Musk and Jack Dorsey. Studies show that about 13 per cent to 14 per cent of Americans own or have owned cryptocurrencies.
🔅 The emergence of niches like non-fungible tokens (NFTs), decentralised finance (DeFi), and Web 3.0 has boosted the crypto market and blockchain growth and adoption.
🔅 Central bank digital currency, meme coins, and NFTs were the three major trends in 2021.
🔅 With the $69 million sales of the NFT collage by artist Beeple at Christie's in May, celebrities joined the NFT bandwagon, surpassing NFTs into the mainstream. Since then, sports brands have rushed in with their own tokens that grant ownership of digital photographs and video, including football and basketball clubs and brands like Adidas.
🔅 Coinbase, a US cryptocurrency exchange, went public on Nasdaq in April via an IDO (Initial Direct Offering), which is similar to an IPO (Initial Public Offering) but without the financial middlemen. Coinbase was the first crypto company to go public without employing a reverse merger, known as a SPAC.
Bitcoin, the most valuable cryptocurrency by market capitalisation, went on another wild year, rising from $29,405 at the start of the year to $67,554 in November. Let's take a look at some of the major events that have influenced not just the BTC price but also the crypto industry's future.
The BTC price in 2021 was about $30k in the first month of 2021 and the world was still dealing with Covid-19 and vaccination. BTC price followed a bell-shaped trend, starting from $30k, peaking at approximately $40k, and then going back to around $30k by late January.
The second month of the year was a hot month for the BTC. On Feb 8, there was a disclosure of Tesla’s $1.5 billion investment in Bitcoin and its intention to begin accepting BTC as a form of payment led. This news made BTC’s price see 15.8% growth and surpass $57k. However, breaking the news from Tesla changed the game. On Feb 23, Elon Musk said that the price of Bitcoin and Ether “seems high.” After that, the price went down to around $46k by the end of February. So, let’s name February 2021 as Elon Wave, the man of the year 2021.
During the third month of the year, the BTC price was still in the seat of power, and the price touched $60k and didn't see a price below $50k.
The increasing trend of BTC kept on going by mid-April, and the price reached $63.4k. However, the price fell to $48.1k in a crypto market correction. On April 26, Coindesk reported that JPMorgan & Co. was preparing to introduce an activity-managed Bitcoin fund to some clients in the summer, and it made the market increase by +10.7%. Still, this news was not enough to keep the upward trend of BTC prices going.
Over the fifth month of the year, the trend was downward, and the price came back to the year’s lowest price range, around $33.7k. The news reinforcing the negative trend was China’s state council reiterating its call to curtail Bitcoin mining and trading. This news negativity influenced the market by a 12% decrease in the price of BTC.
The market was relatively fluctuating around $35k, and on June 21, Bitcoin’s average price over the last 50 days fell below its 200 days moving average, which means the death cross in Bitcoin price happened and negatively influenced the price by -9.1%.
BTC price followed a constant downward trend, reaching the minimum of $29.8k before a piece of good fake news reversed the trend on July 26. Bitcoin’s price jumped amid speculation that Amazon would accept BTC for payments, which the company’s spokesperson later denied. This piece of fake news influenced the BTC market by +9.5%.
During the 7th month of 2021, the market saw a constant increase in Bitcoin’s price, surpassing $40k again and almost reaching $50k.
The price was almost between $40k and $50k, with news about El Salvador causing a 9.9% decrease in BTC’s price. On Sep 7, El Salvador became the first country to adopt Bitcoin as legal tender, but the rollout was plagued with glitches.
October was a memorable month for crypto fans. On the first day of October, Federal Reserve Chair Jerome Powell said that the central bank had no intention to ban cryptocurrencies, leading to a 10.8% increase in Bitcoin price in one day. BTC price continued its upward trend, surpassing $60k again.
The bull market was continuous up to early November, where BTC price hit $67.7k. After that, the price started to decrease again and reached around $58k by the end of November.
On the 4th day of December, Bitcoin plunged in a weekend flash crash, following a sell-off in stocks, and saw a decrease of 9.1%, falling below $50k. After that, the price fluctuated around $50k, and by the time of writing this post on Dec 27, BTC was being traded for $50.8k.
According to our data the annual return of the investment (ROI) of top coins was as follows:
In the following, you can find the performance of the top 10 coins and their price change through the year 2021:
Improving financial payment transparency can accelerate the growth of the cryptocurrency market in the near future. Digital currencies are developed on blockchain technology, and these currencies are decentralised, i.e., no central authority controls them, and multiple entities keep copies of transactions. This transparency would result from Etherum's transition to the PoS model in mid-2022. By transition, we mean that the Ethereum mainnet system will be merged with the new Beacon Chain, which will boost the entire market.
Introducing a unified European regulation and travel rules for cryptocurrencies can boost the entire crypto market. It is because institutions will be able to freely trade with cryptocurrencies and make sure that their coins are safe and the government regulates the transactions. It is no secret that stablecoins have been a hot topic for the entire crypto market. Countries are seeing the threats and competition for CBDC in stablecoins, and Tether is still issuing new USDTs. It seems that stablecoins will go out of the grey zone in the next year.
One of the main resources to learn A to Z of the crypto market in the new year is Masaari’s crypto theses report for 2022 that you can access for free. Massari, a cryptocurrency analytic company, provided a full account of the 2022 crypto market entitled “Crypto Theses for 2022”. In this report, you can explore key trends, people, and projects to watch, as well as projections for 2022. You can find all information you need for the upcoming crypto market and fasten your seat belt to go to the moon in the new year.
In Massari’s report, you can learn about Massari employee crypto holdings and all the cryptocurrency trends in the next year. Here is a gist of all information provided in each chapter:
In the first chapter, you can read about the top 10 narratives and investment themes, the collapse of people trust in the legal institutions, the inevitability of web3, and how fast it is growing, NFTs and DAOs, decoupling of cryptocurrencies, the permanent presence of venture capital, how much the current bull market can fly, how to survive in a bear market, copy trading, etc.
The second chapter talks about the ten crypto people you should keep your eyes on in 2022, and the first person mentioned is WAGMI. It is a term coined by Massari, which means (write the definition here) and if you read it with an open mind you will benefit a lot. The third chapter is dedicated to Massari team’s ten thoughts and predictions about Bitcoin in the year 2022.
The fourth chapter pertains to the crypto policy in the USA and all the details about the Biden plans about stablecoins, the list of crypto risks that should be addressed through the regulation, and so on. The fifth chapter is about the market infrastructure, criticising ETFs, etc. In the sixth chapter, you can find about NFTs and Web3 and how these technologies can influence all the sectors of the economy. It is undeniable that NFTs will tokenise everything.
The Seventh chapter of Massari’s report elaborates the DeFi. The eighth chapter is about Ethereum and its layer 2 scaling solutions and cross-chain bridges. The ninth chapter is dedicated to autonomous organisations or DAOs, and it comes with ten predictions. The 10th Chapter, titled “What I Want” consists of Massari’s owner thoughts that we suggest that you take a look at!
Since interest in the crypto industry and its captivating side stories is surging, the coming year will be full of surprises. The rivalry between various parties also adds to the fire. So, it’s not highly unlikely to see more growth in this promising yet intriguing business soon. Keep checking Cryptologi.st to learn more and be more updated. Stay tuned!
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