What happened to Bitcoin and other cryptocurrencies in 2021?
In 2021, cryptocurrencies were unrivaled conduits of greed and terror, minting and wiping out fortunes as they fluctuated wildly while adding $1.5 trillion to the entire market value.
Bitcoin, which has grown by more than 60% this year, has had to share the spotlight with altcoins such as Ether and Binance Coin, as well as meme tokens such as Dogecoin and Shiba Inu.
In fact, during the course of 2021, Bitcoin's market share decreased considerably while other tokens soared, demonstrating how investor interest in digital assets increased despite — or maybe because of — extreme volatility.
According to Vijay Ayyar, president of Asia Pacific at Singapore-based crypto exchange Luno, "given the proliferation of assets in the market," the decline in Bitcoin's dominance will certainly continue next year. the crypto ecosystem and the many use cases."
Bitcoin, the world's most popular cryptocurrency, started the year with a 70% market share. This has dropped to less than 40%, thanks to Ether's growing popularity. This year, the Bloomberg Galaxy Crypto Index has grown by more than 160 percent, outperforming gains in more traditional assets like commodities and global stocks, which have grown by 23 percent and 13 percent, respectively. Given the volatile nature of cryptocurrencies, the ancient adage "no pain, no gain" holds true. on. Its supporters believe that it provides protection against some of the greatest inflation rates in a generation. However, rather than inflation forecasts, the token in.2021 appeared to correspond more consistently with risk assets, such as technology stocks.
This year, the Bloomberg Galaxy Crypto Index has grown by more than 160 percent, outperforming gains in more traditional assets like commodities and global stocks, which have grown by 23 percent and 13 percent, respectively. Given the volatile nature of cryptocurrencies, the ancient adage "no pain, no gain" holds true.
After a more than 30% plunge from a record high little over a month ago, Bitcoin is now challenging critical technical support levels. One is the 55-week moving average, which has served as a floor for selloffs in the past, and another is a level of around $44,100 suggested by a Fibonacci analysis of the rise from the March 2020 through to the November 2021 peak. Bitcoin has already dropped below a trendline that has been in place since the outbreak began.
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