Bitcoin Price Plunges to $55k Mark

Bitcoin Price Plunges to $55k Mark

Like all other asset classes, cryptocurrency investment also comes with its share of turbulence and volatility. In recent months, the cryptocurrency market has mainly witnessed positive momentum in its valuation and digital coin prices. This year 2021, has specifically gone excellent for the overall market capitalization of the crypto sphere, with Bitcoin, the largest cryptocurrency by market cap, largely leading the price rally.

One of the major contributors to the ascent in the price of Bitcoin is the institutional adoption of the cryptocurrency. Many large technology companies such as Tesla and Microsoft have come forward and announced their support for Bitcoin. This provided the impetus to the price of Bitcoin, and its value broke all previous records and surpassed the $60k mark in March 2021. Subsequently, its value plummeted, and at the press time, the value of the largest cryptocurrency was hovering around $56k after it successfully hit the $58k level.

As far as market sentiments are concerned, specialists and experts in the cryptocurrency domain are largely positive about the future growth of Bitcoin. Views are divergent regarding whether Bitcoin will again break through its previous high of $60k; however, there is unanimity that all major digital coins will continue to progress in a positive direction in the coming times.

The turbulence and uncertainty factors related to digital coins are quite high. If efforts to reduce this unpredictable nature bear fruit, the largest chunk of prospective investors can easily become part of the digital ecosystem soon. It is important to highlight that the high degree of uncertainty continues to prove one of the stumbling blocks in the growth of the cryptocurrency sector. That said, despite this instability, Bitcoin has become successful in allaying the fears of many investors, which explains the rise in its prices of late. Further, institutional support has boosted its prospects of adoption among the larger section of the world’s population.

Experts are pointing out that it will be wrong to label cryptocurrency as a volatile and turbulent asset class. For instance, the remarks of the Chief Executive Officer of Binance cryptocurrency exchange, Changpeng Zhao, who said that Bitcoin was less volatile than stocks of the organizations with similar market capitalization, including companies such as Tesla and Apple.

In sum, there is a positive momentum building across the globe towards cryptocurrencies, and Bitcoin, being the largest digital coin in terms of market capitalization, is leading the way for the growth of crypto. Mass adoption is one of the prerequisites for the long-term success of cryptocurrencies. Efforts are being made to make sure digital coins reach their desired levels of adoption and usage volume in the future.

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