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2020 was an absolute stinker of a year, but if you happen to own a stash of Bitcoin, there was some good news.
Over the course of the year, the price of the cryptocurrency increased by 400%, which should make those that are working from home that little bit happier.
At least you don’t have to listen to that Bitcoin guy in the office telling everyone how wise he was to hold onto his goods during the great crash, because he’s now rebounded in fine style.
Fair play, though.
There are countless articles about the how and why of Bitcoin’s dramatic resurgence, but this one from Forbes is a decent starting point.
It was written over the weekend, and thus doesn’t factor in the recent slump, but more on that later.
According to Forbes, “new research shows how Bitcoin “whales” accumulated a huge number of bitcoin tokens in December, helping the bitcoin price to never-before-seen highs”:
“Bitcoin ‘whales,’ addresses with more than 100 bitcoin, accumulated an additional 47,500 bitcoin amid bitcoin’s ruthless rally throughout December,” researchers at the San Francisco-based bitcoin and cryptocurrency exchange Kraken wrote in a report out Thursday.
“Not only did the aggregate number of bitcoin in whale addresses hit its highest level all year, 11.46 million bitcoin, but addresses with a balance of more than 100 bitcoin surpassed 16,300—a reading last seen on March 16, 2020.”
This massive bitcoin accumulation helped the bitcoin price to soar 50% through December, with the price rise accelerating in the new year. The bitcoin price has added a further 40% in the first week of 2021 alone.
Some huge numbers mentioned there, but anybody who has dabbled in Bitcoin knows that it’s a bumpy, white-knuckle ride.
Over the past two days, a tumble in price has led to concerns that the cryptocurrency may be running out of steam.
Here’s Moneyweb:
Bitcoin, the largest cryptocurrency, slid as much as 18% over Sunday and Monday to as low as about $33 500. That’s the biggest two-day slide since May last year and follows a record high of almost $42 000 on Jan. 8.
“It’s to be determined whether this is the start of a larger correction, but we have now seen this parabola break so it might just be,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore.
This graph, via CoinDesk, is correct as of 8:45AM South African time, and shows Bitcoin’s performance over the past 24 hours:
During that period, it has lost around 20% in value.
However, Bitcoin’s performance over the past seven days still shows an increase (as of 8:50AM SA time):
More from Moneyweb:
Believers in Bitcoin see it as a maturing asset that provides a hedge against dollar weakness and inflation risk. Others worry that the rally is untethered from reason and fuelled by vast swathes of fiscal and monetary stimulus.
Bitcoin has shrugged off recent dips and may do so again, potentially recovering to as much as $44 000 “before the actual correction,” Ayyar said.
The rollercoaster ride continues.
