Bitcoin price fell by almost five percent overnight
The price of the most popular cryptocurrency fell to $57,300 – an anti-record since October 28. This is evidenced by the data CoinDesk. At the time of writing the news, the rate has recovered somewhat, and now bitcoin is trading at $57,500. The capitalization of the first cryptocurrency has fallen to $1.09 trillion.
Bitcoin is getting cheaper amid news of new measures against cryptocurrency in China, which banned mining and any transactions with cryptocurrencies in 2021. In November, the government warned state-owned enterprises against mining cryptocurrency. Authorities are also reportedly preparing new punitive measures, one of which is the imposition of higher electricity prices for companies that continue to ignore the ban on coin mining.
Bitcoin hit record highs in value in early November. On Nov. 10, the first cryptocurrency hit a high of $69,000. Experts expected bitcoin to continue to rise, with its value reaching $100,000 by the end of 2021.
BTC price: the expert named the main factors of growth in the near future
The launch of new cryptofunds and low volatility will push up the bitcoin price.
The launch of new crypto funds, low volatility, and the perception of bitcoin as a protection against inflation will push the cost of the most popular cryptocurrency to new highs, according to the director of the largest cryptocurrency exchange Binance.
The U.S. inflation rate hit an alarming 6.2% in October, and bitcoin hit a new price high last week. Once again, this is evidence that the market is on the lookout for an asset that will protect investors from rising inflation. Attention is now focused on the possible launch of new exchange-traded funds (ETFs), particularly from Grayscale Investments and BlockFi, which will push bitcoin to new highs
The expert adds that the cryptocurrency market has seen price consolidation over the past week, with bitcoin volatility reaching 2.7%, approaching its lowest level since the beginning of the year. He explains that the sustained low volatility of the number one cryptocurrency signals bitcoin’s mature development and reinforces its position as an alternative investment asset class with positive returns.