At the peak of trading, Bitcoin exceeded the $40,000 mark for the first time. Its highest value at the moment was just over $40,402. However, the cryptocurrency failed to hold on to a new historical high. What is the mean growth rate of Bitcoin?
The rising value of Bitcoin is explained by an increased demand for digital currency from institutional, corporate, and retail investors. Thus, the cryptocurrency is rapidly growing in price amid ultra-low profitability and negative interest rates in financial markets. How to track growth of Bitcoin? Today, we’ll try to find out!
What Is the Mean Growth Rate of Bitcoin?
What is the mean growth rate of Bitcoin? On January 8, 2021, the bitcoin rate for the first time exceeded the $40,000 mark. The value of the cryptocurrency during 2020 has quadrupled. In December last year, the price increases of Bitcoin were 50%.
At the beginning of 2020, Bitcoin cost $ 7,000. On March 17, it fell to $5,000. Then, until mid-October, the Bitcoin rate grew gradually with slight declines. On October 16, the level of $11,500 was reached.
Bitcoin’s current market cap is around $600 billion, which is more than Visa’s. The market cap of one of the world’s largest payment systems is about $485 billion.
What Is the Growth Rate of Bitcoin?
What is the growth rate of Bitcoin? According to CoinDesk, the Bitcoin rate above $29,000 between December 31 and January 1 was an expected market situation. Some investment fund managers have decided to buy cryptocurrency so that next year they can boast of having a good portfolio in 2021. On Wall Street, it’s called window dressing. For example, Hong Kong-based company GreenPro Capital decided to spend $100 million on cryptocurrency at the end of the year. So, what is the growth rate of Bitcoin?
CoinDesk explained that the US Federal Reserve, along with the central banks of other countries, is currently continuing the process of printing large amounts of money. In this way, they’re trying to prevent the worst economic fallout from the pandemic. Such actions are viewed by many investors as drivers of inflation. That’s why many funds, companies, traders, and retail investors invest in Bitcoin — in order to maintain or increase their capital.
The year 2020 goes down in the history of cryptocurrency as the maturation period for Bitcoin as a macro-asset. This year, well-known public companies such as MicroStrategy diversified their cash reserves into cryptocurrency. JPMorgan analysts fear that rising interest in Bitcoin in 2021 could even lower the price of gold.
What Is the Projected Growth of Bitcoin?
What is the projected growth of Bitcoin? Well, first things first. At the end of last year, the leading cryptocurrency began its intensive growth. This was due to the influx of a large number of both new investors and institutional investors. This includes Skybridge Capital (spent $25 million in December to buy cryptocurrency), MassMutual ($100 million in December), and Guggenheim Investments (the fund has already spent up to 10% of their capital to buy bitcoin).
Moreover, an investment director of Guggenheim Investments Scott Minerd believes that bitcoin is ‘extremely undervalued’ at current price levels since it should cost about $400,000. Other experts predict that the rate can quickly reach $100,000, with a maximum ceiling of $300,000 in the new year.
So, what is the projected growth of Bitcoin? Some experts believe that in 2021, the bitcoin rate will be adjusted. This will happen if the global economy begins to recover. Binance CEO Changpeng Zhao has a different opinion. He told CoinDesk that most investors expect Bitcoin to continue to grow in 2021. According to Zhao, the long-term economic impact of the pandemic is unknown. The world is still in the midst of serious economic turmoil and historical instability, so Bitcoin and other cryptocurrencies will continue to grow.
How to track growth of bitcoin? What other information do you know? Feel free to share your knowledge in the comments!