For all its advantages, cryptocurrency remains a volatile and subjective commodity. Digital currency cannot be controlled the way fiat currencies are. There is no central bank or supreme financial body regulating the rise and fall of their value. The value of these currencies (and the cryptocurrency market in general) is often influenced by different factors, including the activities of miners, the rate of demand, and how frequently traders buy bitcoin within a given period.
In mid-2021, crypto traders experienced a fall in the value of many currencies, most particularly Bitcoin. There was a huge reduction in Bitcoin price and value, as it kept plunging downwards between May and July, 2021. In July 2021, the coin actually went below 30,000 USD, as against the 64,000+ USD it had reached in April of this same year. This means that bitcoin had fallen by more than half of its value in less than 3 months.
However, experts believe that bitcoin will experience a double bubble, before the end of 2021. Currently, we are said to be in a bull market and BTC could possibly surge to a price as high as 300,000 dollars, based on previous patterns, finally effecting a second btc bubble.
Many experts and crypto entrepreneurs have noticed the patterns exhibited by bitcoin since the beginning of 2021, where it has broken multiple records so far. The Bitcoin bull market cycle comes occasionally, perhaps every 4 years, and for 2021 it is being predicted that it could really go up to unprecedented numbers. For clarification, a bull market refers to a “condition of a financial market in which prices are rising or are expected to rise”.
Similar situations have happened in the market twice, over the past 8 years. The first was in 2013, while the most recent was in 2017 when bitcoin price surged up to about 20,000 dollars by the end of that year, from $1000 at the beginning of that same year. The prediction is that the crypto bubble 2021 experienced in April, is likely to happen again later this year.
The Drawback
The above information is clearly good news. However, a disadvantage is that there may be a likely bubble burst, after the surge. The Bitcoin bubble signifies a situation whereby bitcoin price and value continue to rise and rise, which is also a characteristic of an actual bubble. And just like an actual bubble, the bitcoin bubble is predicted to burst after its double bubble run finally happens this year. In other words, it is expected to drop in value after going really high.
Interestingly, this has happened before in the cryptocurrency market, where Bitcoin price dropped about 80% in value, from the “high” it experienced in late 2017. The only guarantee with bitcoin and other cryptocurrencies is their volatility and this has served as both an advantage and a disadvantage.
However, the crypto market is generally becoming more mature with major institutional support and recognition. Many hedge fund managers, banks and pension funds have jumped on the crypto train in the past year, and many investors have been compelled to get into the space due to the participation of many of their clients.
The Bitcoin Bubble Index, which is the dedicated monitoring tool for the general movement of bitcoin, depicts a double bubble phase for bitcoin in 2021.
Specifically, the BTC bubble index hit an all-time high on April 14 2021, when the price and value of BTC/USD reached $64500. During this period, bitcoin had an all-time market cap high of 1,000 billion USD. However, there had been a market capitalization decrease from then, which had declined to roughly 600 billion USD by June. In May, when the fall began, the run-down in value for bitcoin, from $64000+ to about $30,000. Many experts have likened this to 2013, as proof of another peak happening. During this period in 2013, bitcoin holders held on and decided not to sell, eventually reaping the benefits before the end of the year. Experts predict that the higher prices and a supply squeeze which will happen as a result of “buying the dip”, would begin to resemble the double bubble scenario, which occurred in 2013.
Gearing Up for a Second Peak; The Double Bubble
From the information above, what experts have predicted is that the coin will indeed experience a second peak, where the value will experience another all-time high, which will significantly surpass the record in April 2021. This milestone is expected to be achieved before the end of the year. The second peak is what will signify the occurrence of a double bubble, with the first being the April peak (which unfortunately burst shortly after).
Following the development of bitcoin since the fall in May, the price has risen to over 50,000 dollars by early September 2021. Monday September 6, the bitcoin price already rose to 52,912 USD. Whether this signifies the beginning of the second peak, it is simply another exercise in volatility, no one can definitely say. However, from all indications, and the input of experts, the reasonable prediction is that we are likely experiencing another peak this year, similar to the experiences of 2013 and 2017 (a second “Crypto Bubble 2021”, according to many).
The Chart
The BTC/USD Chart indicates the real time value of bitcoin in US Dollars. Many platforms and websites such as Redot, TradingView, and Business Insider provide accurate btc price news, as to the general value of Bitcoin when converted to Dollars. This is quite similar to the Dow Jones Industrial Average as displayed by certain websites, which shows the market situation and changes in real time. The BTC/USD chart has been used as the basis for data analysis and future predictions of the market. If you happen to be new to the crypto currency market in general, these platforms provide you with full details of the USD equivalent of BTC price today.
Conclusion
Despite the changes and volatility ascribed to bitcoin and the overall crypto network, it remains a market that shows a lot of promise. One of the most notable achievements of the crypto space to this day remains the lack of duplicate transactions or counterfeits, which hard currencies continue to find as a challenge. This is all thanks to the securing of currencies with blockchain during mining. With regards to experiencing the second peak before the end of the year, we look forward to this happening, and until then, fingers crossed.