The 2021 bull market continues to wow market participants by approaching new areas of price discovery on an almost weekly basis. It’s important, however, not to get complacent and forget about historic bear trends where BTC has been known to drop 80% or more from its all-time highs in a matter of a few weeks.
Bitcoin has been making new all-time high records since its break of $12,000 back in October of 2020 and now it sits comfortably above $50,000 per coin, a price that was almost incalculable just a few short months ago. The overall volatility of the Cryptocurrency markets, in general, has kept institutional investors along with more traditional investors from entering the space. But, now it seems as if Bitcoin has finally gone mainstream as economic uncertainty fueled by widespread panic related to the COVID-19 pandemic has pushed more people around the globe to take Cryptocurrencies more seriously.
The market has seen a huge increase in new participants since Bitcoin broke out of the $20,000 range. There is a combination of factors at play here. One is that a large number of institutional investors and corporations are just starting to adopt Bitcoin. Companies like Tesla and MicroStrategy are putting Bitcoin on the map for other corporations around the globe and piquing their interest in Cryptocurrencies.
Mass Adoption Of Crypto Being Fueled By Popular Smartphone Apps
Additionally, apps like Robinhood, Coinbase, and Kraken have made it possible for everyday retail investors to get involved in the markets and start trading digital assets and currencies. With this increased acceleration of new market participants, we will likely continue to see the overall price of Bitcoin rise over time until it reaches a large market cap similar to gold and eventually becomes more stable and less volatile.