The year 2021 of Bitcoin (BTC): review and outlook

Bitcoin (BTC) price ends 2021 sharply higher

The price of Bitcoin is of course the element which is the most observed to follow the evolution of the cryptocurrency. And this year, it has not silenced its reputation for volatility. After having started 2021 on the hats of the wheel, he had hit an absolute record (ATH) in April, for the first time exceeding $ 65,000.

But this fine performance was followed by one of the biggest crashes in its history in May: the BTC had come close to 30,000 dollars. Since then, the recovery had been more timid, with some ups and downs. At the end of the year, however, things accelerated: Bitcoin’s price hit a new all-time high at over $ 68,500.

In the end, Bitcoin ends the year 2021 a little more at half mast: it is exchanged this morning for 48,000 dollars. But the progression remains clear: it corresponds to + 76.9% over the last twelve months. Its capitalization currently exceeds 906 billion dollars.

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Mining: a hashrate who recovered from the Chinese exodus

One of the biggest news of the year was the progressive restriction of mining by the Chinese government, which went so far as to be banned last summer. China at one point accounted for up to 65% of the global hashrate (or hash rate), so the consequences have been particularly impactful for the Bitcoin network as a whole.

In total, the average hashrate lost -53% in a few weeks, a direct consequence of the closures of mining farms. At its lowest, it only reached 84 pe / s:

Bitcoin hashrate (BTC) progress in 2021 – Source: Glassnode

Since then, the great migration of minors to new territories has taken place. The United States has become the country producing the most hashrate (35% last August). They are followed by Kazakhstan (21%), as well as Russia and Canada (11% each):

Bitcoin Hashrate by Country 2021

Evolution of the hashrate by country until August 2021 – Source: CBECI

Against all odds, the Bitcoin hashrate its quickly recovered from this upheaval, and he even reached new records at the end of the year. This is further proof of the incredible resilience of the Bitcoin network.

👉 To go further – Bitcoin (BTC): the hashrate has recovered from the exodus of Chinese miners

Bitcoin: long-term investors dominate 2021

The general public’s interest in Bitcoin and cryptocurrencies was confirmed in 2021. Non-fungible tokens (NFTs) burst into the discussions, and records for major cryptocurrencies have attracted a new fringe of investors. Both old and new seem at this stage decided to keep their BTC for the long term.

At the end of the year, 74% of the bitcoin supply is indeed stored in the wallets of holders over the long term, a similar share at the start of the year, where they represented 72%:

Short term long term Bitcoin holders

Long / short term holders and their profits – Source: Glassnode

All of this is confirmed by the cryptocurrency stocks on the exchange platforms. When these decline, it is universally seen as a sign that investors are moving their coins to cooler wallets, and therefore not planning to trade them anytime soon.

In 2021, the number of BTCs stored on the exchange platforms fell -2.6% to 67,800 BTC. However, keep in mind that the price of Bitcoin has climbed over the period, which means that the price in USD of these BTCs is not the same as at the beginning of the year. All this therefore indicates that it is the ” hold Which continues to dominate investor strategies.

👉 To read – Bitcoin (BTC) miners earned more than $ 15 billion in 2021

What prospects for the year 2022?

So all of this brings us to 2022. What are the prospects for Bitcoin? Will its price see the highs so hoped for by investors? In the matter, it would take a crystal ball to say it with certainty, but the majority of experts seem confident.

As of mid-December, Bloomberg analysts estimated that Bitcoin was still racing to hit $ 100,000 in 2022, explaining:

We expect wider adoption to prevail and overcomes most problems, like the correction of almost 50% known in 2021. […] Bitcoin appears to be on a path towards $ 100,000. We see Bitcoin heading into 2022 with a bull market that has taken a hiatus, and has been renewed. “

This oh so psychological threshold of 100,000 dollars seems shared by other analysts … Even if some are more cautious. The JPMorgan institution thus fixes a price target of $ 73,000 for the year 2022, although it envisions a record high of $ 146,000 in the longer term.

What is certain is that BTC has started to gain the attention of investors looking for a haven, as fears of lasting inflation weigh on the dollar. The one that some call ” digital goldcould therefore continue to set itself up as a viable alternative in 2022.

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About the Author : Marine Debelloir


Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to unearth the crispest information to share it with you.
All articles by Marine Debelloir.

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