2021 has been a rollercoaster year for the cryptocurrency bitcoin. It is the most volatile cryptocurrency in the market and has the highest profit anyone can take out of it. However, understanding the cryptocurrency market is the initial thing that you have to do. To do so, you also should know why the most favourable cryptocurrency for you is experiencing volatility. In 2021, bitcoin reached its highest price. In the initial stages of this year, bitcoin started at a price lower than $30,000. However, in January, it somehow managed to reach a price of $48,000. Later on, it started to decline and again fell to $40,000. The same thing continued throughout the year, and therefore, the validity was very high during 2021 for bitcoin.
However, moving towards the ending of 2021, the month of November has been very remarkable for this cryptocurrency. It is because it reached the highest price of all time in November. Later on, it started to decline, but it marked when bitcoin was the marvel of the whole cryptocurrency market. Therefore, it is indispensable to understand all the facts and factors that led to the price decline and a price hike for bitcoin. With a clear view of what leads to an increase and decrease in bitcoin prices, it will be easier for you to make speculations for the future. Therefore, we will describe the whole month of November in terms of cryptocurrency price for activation so that you can understand what leads to the volatility in bitcoin prices.
On November 1, 2021, the prices of bitcoins were 40% higher than in October. The prices recorded a high of over $67,000 and were in your exciting price for bitcoin. It was all happening because of the seasonal optimism and excitement among the cryptocurrency investors. Also, the new bitcoin EFT was about to launch and therefore, people were optimistic about the prices of bitcoins. Bitcoin was standing at $61,000 by the end of November 1, and therefore, it was a good day for cryptocurrency investors. Before you take your first step into the world of bitcoin make sure to do some research to gain enough knowledge related to bitcoin.
On November 4, JP Morgan said that bitcoin can act as an inflation hedge for increasing commodities prices. Also, an investment bank said that bitcoin has the capacity of reaching $146,000 in the future, and after reaching the prices of 70,000, it will reach 73,000 in 2022. Therefore, people believe that the other assets are becoming worthless in competition with bitcoins. The prices of bitcoin started to increase and led to a different new level of prices in the bitcoins.
November 9 was a fantastic day for bitcoin as it reached a price of $68,000. The bitcoin market capitalization stood at $3 trillion, the all-time highest. Also, the value of bitcoin on November 9 was higher by 280% compared to the January figures. Also, it was very remarkable because bitcoin has never been able to reach such a high price.
Another important event occurred after bitcoin reached $69,000 and fell after that. The inflation rate was 6.2% in the United States of America, the highest of 31 years when bitcoin stood at $69,000. People believe that bitcoin can act as a hedge against the increase in prices of different commodities and therefore started to invest a large amount of money in bitcoin itself.
On November 16, a remarkable event took place in the history of bitcoin. The Twitter CFO said that investing your money in cryptocurrencies like bitcoin at this point is senseless. It doesn’t make any sense. He believes that cryptocurrencies are volatile, and there is no value physically supporting bitcoin prices. Therefore, because of this tweet, bitcoin lost 6% of its value during the morning trade of November 16.
Bitcoin reached down to the value of $57,000 on November 19 due to the long term volatility and bullish market sign. Even though there was more volatility in the market, the market was closed at $57,000 because of the different events. Also, on November 23, El Salvador announced that it would implement a plan for a tax-free bitcoin city. These bitcoins will be backed by $1 billion bitcoin bonds, and also, people will be capable of using bitcoins in everything available in the city. India was also an important role player in the prices of bitcoins during November. On November 25, India announced that it would bring a bill in the Parliament session that will regulate the movement of cryptocurrencies. It led to fear in the cryptocurrency investors, and the market was a little bit down.