Key Takeaways:
- Bitcoin experienced one of its most volatile years as it hit a record high of $69,000
- Outlook for growth of BTC and crypto remains firmly positive as we move into 2022
Bitcoin Adoption Grows Substantially in 2021
Bitcoin, the world’s biggest cryptocurrency, experienced a highly-volatile, jittery, and wild year. In 2021, the original cryptocurrency enjoyed waves of mainstream adoption, from institutions to entire countries. This said, major investment banks and financial professionals embraced the nervously-bouncing digital asset.
Goldman Sachs, JPMorgan, Morgan Stanley, all shifted their attention to bitcoin products as they struggled to meet client demand. Moreover, Wall Street welcomed its first three Bitcoin exchange-traded funds. As a result, bitcoin futures are now trading alongside traditional assets like stocks, commodities on the US exchange.
Further, El Salvador became the first country to adopt bitcoin as legal tender and national currency. The small Latin American nation started using BTC in early September. Since then, the token has become a catalyst for change, and a reason for the nation to be optimistic for its future.
Also, earlier in the year, Elon Musk decided to accept bitcoin as payment for Tesla’s electric cars. While the decision was later reversed, Tesla converted $1.5 billion into bitcoin. Most of it is still in Tesla’s treasury and is now worth over $2 billion.
Prospects for Bitcoin Remain Bright in 2022
Looking ahead into 2022, key opportunities are expected to unfold. In detail, traders and investors await US regulation to arrive over bitcoin and crypto. On this note, US regulators, namely the Securities and Exchange Commission (SEC), are working over the clock to hammer out rules.
Once this is settled, the market is expected to continue on its upward trajectory as millions of new participants join the space. Not only that, but leading banks worldwide are facing increased demand to offer genuine bitcoin, instead of futures.
In conclusion, bitcoin is likely to become an even hotter commodity in 2022 and this is expected to be reflected in its price. This year, bitcoin hit a record high of $69,000 and is currently up about 70% since January, trading around $50,000. Join the crypto market to see where bitcoin will take us next year.