Looking back on 2021: After experiencing the surge in 2021, what are the new highlights of BTC in 2022?
Jan. 2022,vincy@footprint.network
Data Source: Footprint Analytics - 2021 BTC Dashboard
This article is part of the Footprint Analytics Blockchain Annual Report.
This article is part of the Footprint Analytics Blockchain Annual Report. Footprint AnalyticsIt shows that the BTC price rose from USD 29,022/coin at the beginning of 2021 to the historical peak of USD 67,674/coin on November 8, an increase of 133%. During this period, the overall token price fluctuation of BTC remained between 45,000 - 60,000 US dollars.
Footprint Analytics - Price of BTC in 2021
BTC asmarket valueThe largest cryptocurrency, its volatility has a certain impact on the entire crypto market. In terms of transaction volume, the performance in the first half of 2021 will be more impressive than that in the second half of the year. The transaction volume in the first half of the year remained at 60 billion US dollars, while in the second half of the year it was basically below 50 billion US dollars, or even between 20 billion US dollars. During this period, there are direct factors affecting policy events of major investment institutions or countries.
Footprint Analytics - Token BTC Trading Volume
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With the rapid development of the encryption market, 2021 will also be a year of qualitative changes for BTC. At the same time, more large institutions will enter the encryption field, such as:
Tesla (temporarily) accepts BTC payments;
El Salvador listed BTC as legal currency;
MicroStrategy triples BTC holdings to 122,000 in 2021;
Goldman Sachs will provide clients with cryptocurrency investment tools such as BTC in Q2;
The number of cryptocurrency ATMs worldwide has exceeded 24,000, etc.
Looking back on 2021, we will analyze the major events that BTC has experienced in each of the four quarters, and see what impact it has on cryptocurrencies?
Footprint Analytics - Daily BTC Price Growth Rate
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Q1: Tesla accepts BTC payments, symbolically leading BTC into the public eye
According to data from Bitcoin Treasury, currently, Tesla holds 42,902 BTCs, ranking second among listed companies that own BTCs, with a value of $1.84 billion, accounting for 0.204% of the total supply of 21 million BTCs .
Screenshot Source - Bitcoin Treasuries(Public Companies that Own Bitcoin)
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Q2: China's policy announced a complete ban on mining, and the price of BTC fell off a cliff for the first time
On May 9, 2021, the Chinese government issued policy documents one after another. On May 18, the People's Bank of China and major regulatory agencies issued a joint announcement prohibiting businesses related to virtual currencies, and Chinese banks subsequently announced that they would prohibit the use of the bank for transactions related to virtual currencies such as BTC.
On June 9th, the Chinese government issued a comprehensive ban on mining. The impact of the reform policy extended from the currency circle to the mining circle, which also had a relatively large impact on BTC. The price fell off a cliff, from 59,000 US dollars per coin to 34,000 US dollars/coin, causing chaos in the "currency circle", which proves that the currency circle changes in a day and the world changes in a year.
In addition, on May 13, Tesla withdrew its previous statement that it planned to use BTC to purchase its products, mainly considering issues such as energy consumption and environmental pollution, and worried about adverse impacts on the environment.
In summary, the frequent introduction of policies and the actions of listed companies on BTC will affect the price changes of cryptocurrencies.
Q3: El Salvador listed BTC as legal currency, becoming one of the important milestones in history
On September 7, 2021, El Salvador became the first country to declare BTC as a legal tender. Residents can download the government's digital wallet for free and do not need to pay capital gains tax. Commercial activities such as transactions, taxes, and wages will be completed using Bitcoin. , it is worth noting that holding 3 BTCs can obtain immigrant permanent residency in the country.
According to data from Bitcoin Treasury, the countries and governments that currently own BTC include Bulgaria and Finland, among which El Salvador owns 1,391 BTCs.
Screenshot Source - Bitcoin Treasuries(Countries & Governments that Own Bitcoin)
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Q4: The first Bitcoin futures ETF approved in the United States, BTC hit a record high of $67,674
In October 2021, the first Bitcoin futures ETF was approved in the United States, after which the Valkyrie Bitcoin ETF was launched. Until November, VanEck launched its own Bitcoin ETF in the United States.
Currently, Grayscale Bitcoin Trust holds 648,069 bitcoins, accounting for 3.086% of the total supply of 21 million BTCs. Other entity companies are less than 50,000.
Summarize
Summarize
In the past 10 years, BTC has been traded between retail investors and believers. In 2021, for the first time, giant companies joined and was listed as a legal tender by Salva, which promoted the rapid development of the encryption market and also affected the price of BTC. and other important factors in the price of cryptocurrencies.
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