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Bitcoin wraps up year at 50.73% rise

Bitcoin and Inflation: Everything you need to know

Bitcoin is expected to end the year at a higher price than it did last year, with the current price of bitcoin as of December 31, 2021, reaching $48,088.60, up 50.73 percent from the market price of bitcoin as of December 31, 2020, which was $28,629.40.

Its been a fairly strong year for bitcoin as the market price has experienced a tumultuous and volatile movement. It opened the year at $29,207.27 traded on the lows at the middle of the year and as we get to the close of the year, we are trading on the high again which summarizes the volatility of its price range over the year.

In more detail as said earlier, Bitcoin opened at $29,207.27 and peaked at $63,569.81 on April 14, 2021. While the number of Covid cases and deaths were at their zenith in May 2021, the average price of BTC was going downhill at a fast pace. Despite making the highest average price in April, BTC plunged more than 72 percent in June and July when the number of covid was at its peak and was priced at $29,789.94 on July 21.

Read also: Police probe alleged N22m Bitcoin extortion by officers

Since after July, BTC witnessed a steady rise in the average price and hit its highest average price on November 9 reaching $67,553.93 until the threat of the third wave came with cases of Omicron being reported, and between November and December, Bitcoin faced a fall of more than 15 percent in the average monthly price.

Despite the fact that BTC reached its highest average price in November, market volatility caused it to plummet in December. Between November and December, the average price dropped by approximately 14%, bringing it to $48,088.60. While this drop may be an indicator of the risk aversion that is sweeping financial markets, experts believe that the Omicron strain of the coronavirus, which has harmed other financial sectors, could be the lead factor contributing to this volatility.

According to experts, other contributing factors include the United States Securities and Exchange Commission (SEC) rejecting a spot bitcoin exchange-traded fund (ETF), which would likely have seen billions poured into the crypto market and China’s clampdown on cryptocurrencies in November.