Friday, January 21

Markets per day: cryptocurrencies tripled in value in 2021


Key facts:
  • A few days before the close of 2021, bitcoin shows a return of 71% on the year.

  • The cryptocurrency market tripled in performance to bitcoin this year.

The year 2021 has been one of large fluctuations in price for the bitcoin and cryptocurrency markets. However, less than a week before the end of the year, the balance is very positive, since the total capitalization of the cryptocurrency market is USD 2.37 trillion, which represents an appreciation of 209% compared to the beginning of anus.

As of January 1 of this year, the total market capitalization was USD 766,678 million, which implies that it tripled in the last 12 months. This is the sixth best annual return for cryptocurrencies in the last decade. In 2020, the annual return was 301%.

The first quarter of 2021 was framed in the great boom of the cryptocurrency market that had started in October 2020. By the end of March 2021, the total value of the cryptocurrency market had amounted to USD 1.83 trillion, which represented a 139% rebound in the period.

In the second quarter, the cryptocurrency market hit an all-time high of $ 2.57 trillion on May 12. Tesla’s announcement in mid-May that it would not receive payments in BTC for its cars contributed to accentuating the fall in the price of bitcoin, and the total value of the cryptocurrency market took a hit. The month of April closed in green numbers, but not so May and June. The total market value for June 30 was USD 1.43 trillion, which represented a drop of 21.86% in the second quarter of the year.

The total value of the cryptocurrency market tripled in 2021. Source: TradingView.

The market capitalization of cryptocurrencies begins to decline in the third quarter, as a continuation of the correction that began in May. The minimum of this bearish phase occurred on July 21, when the value of the cryptocurrency market reached USD 1.2 trillion. A market rally was subsequently recorded bringing the total value of cryptocurrencies to $ 2.4 trillion on September 8. The third quarter was a boom for cryptocurrencies, despite a moderate drop in September, and the total market value closed at USD 1.9 trillion.

Bitcoin leads the way for the cryptocurrency market

During this last quarter of the year, the cryptocurrency market has registered several milestones. The first and perhaps the most notorious was the record growth in October of 42%, which was recorded as the highest monthly close for the price of bitcoin and the capitalization market in the history of cryptocurrencies. The second milestone in the current quarter was the establishment of the historical maximum of USD 3 trillion on November 10, as we reported in this medium. Then a correction began, although it was considerably less in magnitude than the correction that occurred between May and July.

Despite the market setbacks in November and December, the last quarter is still green, thanks to the boom registered in October. At the time of this writing, with bitcoin reaching $ 50,235, the appreciation of the cryptocurrency market so far in the third quarter is 24.66%.

Since last Thursday, December 23, the price of bitcoin once again exceeded USD 50,000, according to the CriptoNoticias price index. This occurred in the midst of a moderate price recovery that began on December 17, as reported in this publication. The appreciation of bitcoin so far in 2021 is 71.3%, which is three times less than the return of the total market for cryptocurrencies.

Among the reasons for this disparity in the return of bitcoin with respect to the cryptocurrency market, would be the growth of decentralized finance platforms (DeFi) and the great boom of non-fungible tokens (NFT) in 2021. The dominance of bitcoin, which is measured by the relationship between its market capitalization and the total capitalization of cryptocurrencies, went from 70% at the beginning of the year, to 40.30% today, in figures from CoinMarketCap.



www.criptonoticias.com

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