Bloomberg analysts compared Bitcoin movement in 2017 and 2021 and concluded that there is a big difference between the two runs.
If four years ago the explosion in the market took place in just a couple of months, then in 2020-2021 the ascent was gradual.
This trend is caused by the entry into the crypto sphere of large investors such as Paul Tudor Jones and Stan Druckenmiller. Then other market players began to buy bitcoin, including MicroStrategy and Square. The breakthrough event was the January purchase of BTC by Tesla.
Compared to Bitcoin’s run four years ago, analysts believe the coin is now much less volatile.
In 2021, the range of cryptocurrency price fluctuations is likely to decline. The late January sales were expected. However, compared to 2018, they did not become large-scale.
BTC held above $ 30,000 and resumed its expansion in February. Large investors who bought cryptocurrency in 2020-2021 will make every effort to prevent an aggravation of volatility and a shock drop in the value of bitcoin, according to a Bloomberg review.
Bitfinex CTO Paolo Ardoino believes that bitcoin is emerging as an asset class. Over the past year, the value of BTC has more than quadrupled. This week, the coin is again trying to surpass $ 50,000, now it is trading in the region of $ 49,300.
Bloomberg strategist Mike McGlone expects the volatility of BTC to gradually decrease as it is adopted by financial institutions. He pointed out the limited emission of cryptocurrency and stressed that this is its main advantage over other assets.
Note that McGlone said back in August last year that Bitcoin would reach $ 20,000 by December. The analyst was right, and now he predicts that the $ 50,000 mark will soon be taken.