On the evening of January 3, 2021, at 21:15 Moscow time, bitcoin turned 12 years old. For cryptocurrencies, 2020 has been a real triumph.
The twelfth anniversary of the creation of the genesis block of the world’s first blockchain, the creation of Satoshi Nakamoto met at the highest price levels in history. On the morning of January 3, bitcoin renewed its all-time high, rising to $ 34,800. Trading on New Year’s holidays is held on low liquidity, so a significant correction took place on Monday.
Three years ago in January 2018, after setting a high just below $ 20,000, BTC began to plummet. In less than a month, the price “doubled”, and by the end of 2018 – six times, and the “crypto winter” began, when investors began to lose faith in the future of cryptocurrencies.
Now the situation is different. Despite the almost daily renewal of price records and overcoming $ 30,000, growth opportunities are not yet exhausted. The policy of uncontrolled issuance of fiat currencies by many central banks causes their depreciation, and reserve assets such as gold and bitcoin are rapidly becoming more expensive. Equity markets are not lagging behind, which have already rewritten “pre-crisis” highs, although the coronavirus has not yet receded.
Last May, bitcoin emissions dropped to 900 BTC per day, while interest from retail and institutional investors remains high. Many long-term investors, despite the triple BTC growth in three months, prefer not to part with their bitcoins. Therefore, the lack of supply pushes the price up.
Today bitcoin has corrected to $ 28,000, that is, by almost 20% from yesterday’s high, but quickly won back half of its losses and returned above $ 31,000. The decline occurred at fairly large trading volumes. But this is only “New Year’s volatility”, when speculators rule the market in the absence of large players. It is still premature to assume at what levels a really large correction will begin.