Sunday, June 23, 2024

Bitcoin Had Postive Returns in First Week Of 2021

The positive rise of bitcoin in the first week of 2021 has enthusiasts looking forward to the same in the new year. BTC leaped to $41,441 from $28,653 in the first week of January 2021. It ranged from 7% to 36% between 2018 and 2021.

Raoul Pal, CEO at Real Vision, said on December 27 that bitcoin is set for a stronger comeback in January 2022. He believes BTC will get reinvested in the market. David Lifchitz, ExoAlpha CEO, says that with less than 24-hours remaining in 2021, institutions are still selling to lock in tax losses. A rebound is likely in January.

Nigel Green, CEO of the deVere Group, highlights that December is BTC’s worst month since May 2021. He argues panic sellers give away their cryptocurrencies to wealthy buyers. Green is bullish about bitcoin for the long term. But he feels it will protect investors from global inflation. Green sees borderless, global, decentralized currencies as the future.

However, not everyone is optimistic. Carol Alexander, a Professor of Finance at Sussex University, says BTC could take a $10,000 fall in the new year. A critic of cryptocurrencies, she says bitcoin has no fundamental value. Alexander believes the popular cryptocurrency has already reached its peak.

Todd Lowenstein, a chief equity strategist at Union Bank, believes the COVID-19 financial stimulus packages and low-interest rates benefited the crypto market. But this is coming to an end and will have a significant impact on bitcoin and the traditional markets in 2022. Lowenstein highlighted the “Goldilocks condition”. This exists when growth is neither too hot nor too cold, whereby heat can cause inflation and cold can create a recession. Experts say the Goldilocks economy has an ideal growth rate of 2 to 3%.

Lowenstein said this condition is ending and the liquidity tide is waning. This will disproportionately harm overvalued asset classes and speculative areas of the market. It includes cryptocurrencies.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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