In the last few weeks, the recent volatility of Bitcoin has somewhat been unpleasant to many of the investors and admirers of the cryptocurrency who have high expectations. After shedding $10,000 in price on a single day in February, the digital asset looks to have put the misfortunes of that moment behind itself, as it entered a market correction phase shortly after.
However, despite the lows, the cryptocurrency is currently poised to cross the $60K mark again, something it has already done four times in 2021. However, despite crossing the mark, many analysts and Bitcoin enthusiasts are optimistic that the digital is now on the part to surpass the $61,700 mark it hit weeks ago.
How we got here?
The remarkable rise of Bitcoin in 2021 has somewhat startled a bit in recent weeks, as the asset has failed to quickly build on the stellar performance it enjoyed late into 2021. The digital asset started the year on a high of around $30K, as it moved by more than $10,000 in the last 30 days of 2020.
Despite starting on a high, January’s performance was very shaky as the digital assets underperformed compared to its rival cryptocurrency- Ethereum, in the same period. Fortunately, it was able to shake off that period and closed the month on $33,535. That remarkable rise drew interest from many institutional players into Bitcoin, as Elon Musk’s Tesla invested a whopping $1.5 billion in the cryptocurrency.
By doing this, Tesla had joined many institutional investors like Micheal Saylor’s Microstrategy and Jack Dorsey’s payment company- Square, who have committed a part of their treasury into Bitcoin. It is also worthy to note that the investment by Tesla saw a remarkable rise in the price of the digital asset, gaining more than $5K in that period.
Fortunately for the digital asset, it has now witnessed a meteoric rise in value since then, bar a difficult one week where many crypto assets crashed in prices. However, many analysts are now optimistic that the digital asset is now poised to go on and break the barrier, as the odds are now in its favor.
Institutional adoption will favor Bitcoin
Many analysts believe that the institutional adoption of Bitcoin, which is set to go higher, is another factor that will further improve the fortunes of the cryptocurrency. The rise of Bitcoin ETFs, an Exchange Traded Fund which allows investors to invest in the asset without owning, further shows that institutional adoption of Bitcoin will not slow down, at least for now.
The demand for cryptocurrency by many institutional players, before now, has helped to surge prices higher. However, while many analysts are optimistic about the idea of Bitcoin hitting new ATHs, investors can no longer wait as the asset has continued to frolic around the $60K mark for a while. However, many analysts believe that the new week will see the digital asset hit another milestone, as expectations are high at the moment.