Bitcoin is the world’s oldest and most popular cryptocurrency. In the past six months, despite experts, critics and skeptics regularly issuing warnings and expressing doubts about its maintenance, the value of Bitcoin has risen sharply. Just last month, at about the same time, the virtual currency reached an all-time high of nearly 65,000 U.S. dollars (approximately 4.73 million rupees), soaring by more than 450% in just six months. Since then, the price of Bitcoin has plummeted and has lost more than half of its value since reaching a record high. Large-scale volatility has been a hallmark of cryptocurrency trading in 2021. Bitcoin is no exception.
According to Coindesk data, at the time of writing, the price of one bitcoin (in India) was 40,846 US dollars (approximately 2.97 million rupees) last Friday. However, this is much better than Wednesday, when the cryptocurrency was trading at approximately $30,000 (approximately 2.18 million rupees). The plunge to around US$30,000 per unit was mainly due to the Chinese government’s crackdown on digital currency transactions in the country, which intensified people’s long-term selling behavior.
On May 13, Tesla CEO Elon Musk invested $1.5 billion in Bitcoin earlier this year, and he said that electric car manufacturers will no longer accept it as a payment method. Musk’s statement cited concerns about the “rapid increase in the use of fossil fuels for Bitcoin mining and trading”, which led to a 15% drop in the price of Bitcoin to below US$50,000 (approximately Rs 3.65 million) before showing a recovery. Signs. But Bitcoin is far from recovering its all-time high of approximately US$65,000 (approximately 4.73 million rupees).
The following are the highs and lows of Bitcoin in 2021:
On December 31, 2020, the value of Bitcoin was approximately US$29,000 (approximately Rs 2.11 million). In January of this year, it broke the US$40,000 mark (approximately Rs 2.91 million).
On February 8, Tesla announced a US$1.5 billion (approximately Rs 10,900 crore) investment in Bitcoin and added that it plans to start accepting cryptocurrencies as a payment method. The announcement caused the price of Bitcoin to soar. During this month, the cryptocurrency hit a high of more than $57,000 (approximately Rs 4.15 million).
The value of Bitcoin continued to rise steadily in March, and the digital asset broke the $60,000 mark (approximately Rs 4.37 million) in the middle of this month.
This rebound also continued until April, so far this is the best month for Bitcoin. Around mid-April, the cryptocurrency hit an all-time high of approximately US$65,000 (approximately 4.73 million rupees).
From there, until around May 10, Bitcoin remained above US$58,000 (approximately Rs 4.22 million). In a statement issued on May 13th, Musk condemned the “crazy” Bitcoin energy use, which triggered a sharp drop in prices, which fell to US$49,000 (approximately 3.61 million rupees) on May 14.
While recovering, the latest move by the Chinese government has dealt a heavy blow to the currency, which fell to approximately US$30,000 (approximately 2.18 million rupees) on May 19, which is almost equal to its value on December 31, 2020.
Even if the currency has recovered in the past few days, the volatility of its price has once again proved a point that critics have repeatedly emphasized: fragility. Will another tweet by Musk or a global event trigger another Bitcoin boost? Only time will tell.