Seemingly out of nowhere, the prices of Bitcoin and Ethereum-and nearly every other cryptocurrency- have skyrocketed tremendously over the last several weeks to reach their highest levels of the last 4 months.
so, how did we get here?
If you pay attention to the crypto industry at all, then you are likely aware of the mini “crash” that occurred in april of 2021 which saw most major cryptocurrencies temporarily lose around half of their valuation. Bitcoin (BTC), ethereum (ETH), litecoin (LTC), dogecoin (DOGE), and many more cryptocurrencies all were hit around the same time and nearly every crypto project suffered dramatic drops in market cap.
For example, bitcoin fell from april 2021 highs of more than $60,000 usd per btc to around the $3o,000 usd per bitcoin mark and hovered between $35,000-$40,000 usd per bitcoin for much of the last 3-4 months from april on through july and in to early august.
Similarly, ethereum also saw a sharp decrease in price and valuation as of late, going from all-time highs of more than $4,100 usd per eth in may of 2021 to below $1,800 by mid-july 2021 and starting to trend upward by the start of august 2021. Also, Dogecoin
For those who remain extremely optimistic about the future of the crypto industry, aka the “crypto bulls,” this temporary price retraction was nothing more than a buying opportunity. For those who are bearish on the crypto industry and who want to see the industry fail, it was a joyous time to see so many people panic sell and end up with huge losses.
There are many different theories as to why there was a pullback in crypto prices, but in reality There was not one specific factor which caused the crypto market to basically halve in value, although some factors could have been: 1) China’s crackdown on bitcoin mining and the temporary loss of network hash power caused by this event, since a vast majority of the world’s bitcoin mining was done in china up until the last several months, and 2) many holders of bitcoin and other crypto may have been a bit scared by this development and then chose to sell; and, 3) ELON musk’s involvement in the crypto market, just in general. literally, some people believe could elon wields a vast amount of power to move crypto markets and they really might not be wrong. While nobody knows exactly how much crypto musk owns personally, it seems apparent he has an interest in the space. After all, particularly with his comments about dogecoin and about bitcoin- It seemed musk helped to pump the market when he began promoting dogecoin as “the people’s crypto,” and also was quite positive regarding bitcoin-even announcing plans for tesla to accept bitcoin and announcing tesla had bought over $1 billion usd worth of bitcoin. Then, just as quickly as the market gains were partially attributed to the increased cryptocurrency interest that was generated by elon musk, elon went on snl and jokingly called dogecoin a “hustle,” which seemed to initiate a steep drop of more than $.70 usd per dogecoin to the teens and .20 range, then-as quick as bitcoin seemed to rise up-bitcoin was also taken down when elon musk stated that tesla would actually not be accepting bitcoin as payment after all, at least not until 50% or greater of the energy used for bitcoin mining was sourced from renewable/green sources. Of course, nobody knows if these comments really had an impact on the market or not-but it is fair to say that many crypto enthusiasts are quite focused on what Elon musk says, and it’s also seen as a positive from many in the industry to have such a notable figure drawing attention and more interest to the crypto space. 4) there also has been a recent consolidation of large amounts of bitcoin holdings, as well as Ethereum, being held amongst fewer and fewer unique wallet addresses, meaning some users have an ability to cause larger effects on the market when they choose to buy or sell, and there certainly seemed to be some heavy “whale” activity the last few months as well based upon publicly available blockchain transaction data. you know, make big sales to drive prices down and scare off smaller holders and then buy back for yourself much cheaper. Traditional tactics you’ll see happening with other stocks will also be attempted more and more with bitcoin as more hedge funds and traditional financial institutions start buying bitcoin and other crypto.
But-again, all of these factors could be completely wrong and could be just opinions, and-no matter the reason for the recent market drop- “hodlers” keep holding their bitcoin.
now, in the blink of an eye, at the start of august, bitcoin prices began to rise-hitting a 3 month high of more than $46,000 and staying comfortably in the $44,000-$46,000 range for nearly a week as of august 10th, 2021.
Not to be left out of the party-ethereum also has risen nearly 50% in the last week and has erased much of the losses from april 2021 highs
Even dogecoin is making a bit of a comeback recently, following in the lead of bitcoin and ethereum to a lesser extent. Maybe doge still will go to the moon, like the memes say, in the end?
what is causing the prices of bitcoin, ethereum, dogecoin, litecoin, and most other crypto projects to rise so quickly?
First of all, it really does seem to hold true that bitcoin is what dictates the entire value of the crypto market…as some bitcoin enthusiasts believe. When it comes to every cryptocurrency besides bitcoin, it has been shown time-and-time again that most of these other crypto projects truly move however bitcoin moves for the most part. in other words, bitcoin is the driver of the entire crypto economy and all other crypto generally move how bitcoin moves. If bitcoin goes up, usually ethereum will go up, and if bitcoin is down, all other crypto may go down. of course, there may be days where this rule is not followed. but, when it comes to long-term patterns, typically all crypto projects move how bitcoin moves and thus this means they all want bitcoin to rise and really all need bitcoin to succeed as well…or at least that’s the opinion of some folks. but, hey, how do you know for sure, right?
another major thing driving the increase in bitcoin prices, as well as ethereum and other crypto prices, is simple: increased buying interest. In essence, more people interested in buying bitcoin are jumping in to the market-and more holders are willing to buy at higher and higher prices, and some holders are selling at higher prices because they are taking their gains. Whether it is a fear of missing out on bitcoin, aka “fomo,” or whether it is some other reason-bitcoin is getting more people interested in buying and thus the price is rising accordingly.
lastly, with the corruptly and hastily written major infrastructure bill that somehow passed the senate recently, more people who care about freedom are joining the bitcoin revolution. the government thinks they’re going to start taxing the heck out of bitcoin and other crypto innovators, and they’re even trying to basically implement bogus reporting laws that will be impossible to comply with and thus will drive american innovators overseas and set america behind every county in the nation when it comes to crypto. Just like how prohibition of alcohol ignited more passion and demand for alcohol than ever before, sketchy attempts by some clueless and greedy old folks who want to shadily kill the crypto industry are doing the opposite: they’re bringing more attention to crypto than ever before and they’re helping crypto to go more mainstream than it ever has been. again, who knows if this is really a reason for the rise-because the prices were rising before this hearing-but it seems certain that the new infrastructure bill certainly has helped sustain crypto price gains if nothing else.
truthfully, if you’re an owner of bitcoin or if you’re new to the world of bitcoin-you don’t care why the prices rise, per se, you just hope that they do rise. are we right?
well, if you’re wondering is it too late to buy bitcoin? or if you’re asking: will bitcoin prices continue to go up? nobody can tell you a definite answer because nobody can tell the future, but most bitcoin advocates would say you’re not too late to the game and you absolutely will see bitcoin continue to increase in value. for example, many bitcoin analysts are now issuing renewed calls for bitcoin to eclipse a price of $100,000 usd per bitcoin by the end of 2021. whether or not that prediction is right, only time will tell…but we’re guessing all bitcoin miners and holders alike are hoping for bitcoin to keep rising and won’t worry about volatility.
but, in the end, to many-bitcoin is the true “digital gold,” and the world’s best store of value in existence today, and many feel like bitcoin is really the only crypto that matters and it’s the future of finance. on the flip side of the coin, many feel the opposite and believe in ethereum and/or other projects more than they believe in bitcoin. such is life, and what a beautiful thing to have choices. however, since many believe bitcoin is the only truly decentralized and secure crypto project which does not have a shadowy leadership group profiting from and presiding over it like so many other current cryptocurrencies do (defeating the purpose of decentralization). while not everyone has to take a hard stance, some people have. for example, jack dorsey, the billionare founder of twitter and square, has been a very vocal bitcoin advocate of late and is one of the industry’s favorite figures in the bitcoin community.
So, you can rest assured, while you’ve been watching the bitcoin and other crypto price charts with adrenaline rushing through your veins-you’re not alone and many others are sitting by anxiously watching where bitcoin, ethereum, dogecoin, and other crypto prices will move next. But-for now- it must be a warm feeling for many to see bitcoin, ethereum, and many other cryptocurrencies, rising again and gaining traction worldwide. day by day, little by little, you might reach your goals if you obtain enough crypto from mining or buying it.
while many people have some very educated guesses, Nobody really knows with 100% certainty what will happen next in any industry or scenario, and bitcoin is no exception, especially with the volatility that some love and others revile… but you can certainly do your own analysis and make your own conclusions.
you never know, maybe you’ll be so interested in crypto that you’ll from just buying a little bit of it to wanting to do something more substantial. maybe you’ll start looking into how you can help the crypto industry grow and how can you start making more money with crypto and bitcoin. maybe you’ll look at this article and you’ll see the charts above, and you’ll decide it’s a great time to join the crypto community… or maybe you won’t and maybe you think bitcoin and all other cryptocurrencies are just a fad that will be gone soon. you know, just like how there were many people who thought the internet would be a fad that would go away after a few years, and cell phones, and automobiles, and many more great innovations. so-while bitcoin and blockchain technology may not be something you understand yet-you can expect to have a high likelihood of seeing other price gains ahead. or, at least that’s what the “hodl’ers” worldwide are hoping.
buy bitcoin, mine bitcoin, buy other cryptocurrencies, or don’t get involved with crypto at all. it’s all up to you, but-seeing how bitcoin and ethereum have recently reached their highest prices in more than 3 months and have regained more than 50% of their lost value from april 2021 to august 2021-it may be your time to get in the game, and it may not.
For now, all you need to do is sit back, relax, and watch the crypto prices move as they will.
for us at minedpool and for many others around-the best show around right now is bitcoin.
When it comes to prices rising and falling like they have recently…as they say, it’s all part of the show.