The price of Bitcoin has lately been very volatile as a result of recent occurrences. It's difficult to predict Bitcoin's short-term prospects given Elon Musk's flurry of comments and fresh Chinese crackdowns on the digital currency. On the one hand, some foresee a precipitous decline in the crypto currency, while crypto aficionados anticipate a gradual increase. What will happen to cryptocurrency at the end of the year? What is the price forecast of Bitcoin for the end of 2021?
A quick glance at Bitcoin's current pricing
Following the latest waves of containment due to COVID-19, Bitcoin witnessed a spectacular and epic surge. Indeed, many people resorted to decentralized transactions at this time, especially those using Bitcoin. In fact, the BTCUSD pair was able to hit a high of $64,863.10.
Bitcoin is now valued $36,782.40, with a 24-hour trading volume of about $46 billion. As a result, Bitcoin has dropped by more than 35% in the past 48 hours. Bitcoin has lost almost half of its value from its April peak! So, will this downward trend continue?
What does the Chinese crackdown on cryptocurrency mean for Bitcoin and its prediction for the rest of the year?
Following Tesla's statement that after just 6 months of utilizing Bitcoin as a car payment option, the company will be discontinuing the practice, the cryptocurrency suffered a 15% decrease in less than 24 hours. This abrupt change of heart, according to Tesla CEO Elon Musk, is due to Bitcoin mining's "anti-green" character.
Bitcoin mining, however, would, in his opinion, use much too much carbon. On a one-year timeframe, Bitcoin's consumption exceeds 511.75 TWh, as seen in the graph above (this is a graph provided by Elon Musk on his Twitter account the day following Tesla's announcement, on May 13).
After that, holders of Bitcoin positions raced to sell their holdings. This did not speak well for Bitcoin's future.
China did not join the crypto arena until after this. After a warning of imminent Bitcoin crackdowns, the Asian behemoth triggered yet another Bitcoin collapse. The authorities of Chinese Bitcoin mining companies, in particular, have lately decided to prohibit and penalize all Bitcoin-related transactions in the nation. Furthermore, Bitcoin mining will be subject to a slew of new restrictions. Investors will only be entitled to a public warning about this kind of instrument's speculation.
As a result, Bitcoin is deteriorating. As a reminder, China has a significant effect on the Bitcoin market due to the low cost of energy there. Prices are expected to continue as a result of this wave of crackdown, which was foreshadowed by Tesla's recent statement. The $20,000 milestone may be achieved very soon, according to some Bitcoin prediction research!
Furthermore, investors are gradually warming to Elon Musk's assertion that "Bitcoin is terrible for the environment." All of his sell-offs are essentially pushing Bitcoin closer to the famous $20,000 level, whether it's out of pure arrogance or a genuine desire to protect nature.
Furthermore, with China's crackdown on Bitcoin mining pools, several participants in the industry are already fleeing the country. China's Hashrate, which peaked at 76 percent in 2019, is now at 65 percent. Bitcoin is unlikely to increase again very soon if they do not able to establish themselves somewhere to continue their operations. The Bitcoin prediction for the rest of the year isn't looking so bright.
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Bitcoin forecast: Can we expect a miraculous rise in the crypto currency?
Bitcoin may be on the verge of a comeback. However, it is unlikely to be as quick as the last one. Indeed, the majority of Bitcoin miners and tool manufacturers are planning to leave China or have already done so. Their aim is to set up shop somewhere else and continue mining bitcoin.
They're aiming for nations like the United States, Kazakhstan, and Canada, where the cost of energy makes Bitcoin mining feasible. Even better, some nations have extremely advantageous Bitcoin mining regulations. This is something that investors, particularly crypto aficionados, are extremely pleased with. According to a Coinmarketcap study, Bitcoin is expected to climb to $62,000 in the near future.
As a result, a meteoric increase in the price of Bitcoin may already be predicted. Also, if Bitcoin reaches $42,000 in early July 2021, we may consider this forecast confirmed.
Bitcoin, the cryptocurrency that has sparked so much debate, now has a high level of volatility. If the big mining companies do not able to escape the Chinese crackdowns before the end of the year, the cryptocurrency's future seems grim. Some miners, like as HashCow and BTC.TOP, are getting ahead of themselves and planning their exit from China. Future-oriented news and a positive Bitcoin forecast?