Friday, January 21

Despite closing the month of November in the red, bitcoin doubles in price in 2021


Key facts:
  • Part of the bitcoin price drop was due to fears of a new wave of Covid.

  • In the past nine years, bitcoin has had three closes in the red in November.

After registering records last October, both for the monthly return and the highest monthly closing price in its history, the price of bitcoin ended the month of November with a decline of 7%. Despite that drop, bitcoin has doubled in price so far in 2021.

At the beginning of the penultimate month of the year, bitcoin (BTC) had just registered a historical maximum in the monthly closing price, a milestone that occurred in October. Starting from USD 61,309, the closing price for November was USD 57,018, according to the CriptoNoticias price index. This represented a decrease of 6.98%.

The following table shows the monthly returns of bitcoin since 2013. It contrasts the great push of the first three months of the year, with the successive falls from April to June. The third quarter represents a return in price growth after the correction from April to June, which reached 55%.

Monthly bitcoin returns since 2013. Source: coinglass.com.

In addition to the fact that the price has doubled so far this year, in the elapsed period of the fourth quarter, the price has advanced 35%. At the time of writing, bitcoin is priced at $ 58,960.

Bitcoin more coupled to traditional assets

Among the reasons that motivated the fall in the price of bitcoin in November, the analyst of eToro, Simon Peters mentions, in comments commented by CriptoNoticias, the organic decrease of the price once it reaches an all-time high.

On the other hand, the fear of new restrictions motivated by a new variant of COVID-19, also contributed to the price decline, as reported by CriptoNoticias. The fall of bitcoin last week also occurred in traditional stocks and indices, which reflects a growing trend of coupling of the first cryptocurrency with traditional stocks and indices, as we report in this medium.

Too, the declarations by Jerome Powell, Chairman of the Federal Reserve, this Thursday, November 30, on removing the qualifier of “transitory” from inflation, temporarily led to the decline in the price of bitcoin.



www.criptonoticias.com