The cryptocurrency market grew by 1.23% to US$2.03 trillion Wednesday, while the total volume on the market was US$77.70 billion in the last 24 hours. As cryptocurrency price charts have shot up with upward trends, almost all of the major cryptos have gained during the past day.
Avalanche, Polkadot, and Tether are all riding high at the time of writing, along with other cryptocurrencies. Dogecoin is also seeing a surge in value, as are Shiba Inus, whose prices increased quickly over the last day.
Let us examine as an example the most popular cryptocurrency in the world, Bitcoin, which has been in the news for the past week.
The latest Bitcoin price trends
In the last seven days, Bitcoin has risen by over 20% and is currently worth US$44,297.26. In recent weeks, crypto has dipped continuously but is now showing signs of stabilization as the global crypto market seems to have stabilized.
Previously, there was a slump in the global crypto market following hints of interest rate hikes by the US Federal Reserve.
The journey of Bitcoin until 2021
Since its introduction in 2009, Bitcoin has seen volatile trading histories. From a fraction of a cent to US$0.09 in July 2010, the price of the token has soared.
Towards the end of 2016, Bitcoin prices climbed to an all-time high of US$900, then it topped US$1000 the following year. Gradually, its value climbed and by June 2019, Bitcoin reached US$10,000.
A pandemic threatens the global economy in 2020. In addition, investors' concerns over government policies and a slowdown in the economy accelerated Bitcoin's price, and by December 2020, the token hovered just over US$29,000. This represents a 416% rise since January of that year.
The popularity of Bitcoin hit its all-time high in November when the coin peaked at US$67,549.14, its all-time high. In April 2021, bitcoin surpassed US$63,000, fueled by institutional interest.
After the world was spooked by a new and more infectious variant of COVID-19, Omicron, the crypto began to experience volatility and a downward trend. A slump in its prices was also attributed to rising inflation trends.
Cryptocurrency's price prediction
The Bitcoin price has surged over the course of just over a month in 2022, and the token seems to perform well if the trend continues. Furthermore, the declining threat of the Omicron virus has restored some shine to the crypto market globally, which is now entering a recovery phase.
A cryptocurrency like bitcoin, as well as other cryptocurrencies, is a highly volatile asset, whose value can decline despite years of constant appreciation. There is also the possibility that unpredictability and uncertainty in cryptos could explain the sudden bearish phases in cryptos.
Whenever supervisors take action to regulate these assets and digital currencies, we may see a brief correction of the market, followed by a rally once investors regain confidence.
Market experts and private financial houses have predicted previously that Bitcoin's price may experience an upward trend under such circumstances. If backed by investors and crypto enthusiasts who continue to believe in the new-age digital currencies, Bitcoin may even reach the US$60,000 mark.
In a nutshell
Extreme price speculation characterizes the cryptocurrency market. After a long period of dullness, tech-savvy investors have returned to investing. Due to the volatility of cryptocurrency prices, any unforeseen event may have an impact on its price; as a consequence, crypto pricing is difficult and complex to predict.