2021 was the year where Bitcoin reached it’s all time high by breaking the USD$ 68,000-dollar barrier in November. Since then, the price has dropped and has stabilized around 50,000 dollars. With the world entering a world of restrictions again the monetary movement has experienced a large downfall. However, there is still room to stay optimistic for the future, when you just know why the price has gone down.
New Infrastructure Bill
Joe Biden signed a new infrastructure bill on the 15th of November. This means that cryptocurrencies exchanges who are operating on the American market need to report crypto transactions to the IRS. Crypto dealers still need to report their losses and gains on their own tax bill, but it will now be highlighted by the IRS if the numbers do not match. This leaves the crypto dealers behind with an infrastructure issue themselves, as they will need to track and note how much they paid for the crypto originally. This has led to uncertainty for the future business.
Covid-19
With a lot of the world entering another lockdown period the economy in general is led in the bad direction. Many people will be forced to work from home and some countries have introduced curfews. The good thing about the market going down for a while, is that you can buy your way into crypto dealing at a lower price. However, it is important to find the best broker and get the most bang for your buck. Ensure the best crypto prices here and try to capitalize on the market. Analysts expect that the bitcoin price will reach the 100,000-dollar landmark next year, so right now might be a good time to invest.
The Short-term Investors
Due to the uncertainty of the upcoming changes of taxation and the future in general, some have chosen to sell their investment. This means that the supply has gone up and the demand has gone the other way. Naturally as in any other business this leads to a general price drop in the market. When Bitcoin is going down, the other major cryptos follow its direction. It can be hard to predict, but it is possible to earn money in the crypto broker world.
Crypto in China
Cryptocurrency transactions have been deemed illegal in China, which has closed a huge potential market. Officially the ban took place in 2019, but since then it has been possible for the Chinese investor to use foreign stock exchanges to trade. Now banks and payment platforms have been told to stop facilitating transactions, effectively closing the market in the future. This is a huge blow to the cryptocurrency market as it was one of the largest and the one with the biggest potential.
So, just to sum everything up. The crypto market has experienced a leap backward due to many different factors from the east to the west of the world. This shows that the market is very volatile, but also that it can go up as quickly as it went down. Due to the lower price, it might not be a bad time for you to start investing.
