Everything in the previous year has really gone off the beat whether in regard to global pandemic, travel restriction, countrywide lockdowns or market uncertainties as well. In Spite of all that, here we truly have witnessed that one financial digital asset accelerated the highest and that is Bitcoin. However, it again saw fallback as well.

So, being a prospective Bitcoin investor or maybe the existing one, you must be wondering whether Bitcoin will go bust or boom during the end of 2021. Here let’s see:

Reasons Behind Bitcoin Price Drop:

Earlier the cryptocurrency marketplace has certainly witnessed the glorious momentum in Bitcoin exchange for US Dollar (BTC-USD) where unexpectedly the price reached the skyrocket height of $60,000 from $10,000 instantly. As we already know that the scenarios never remain the same in any exchange market whether it's a stock exchange or maybe a currency exchange as well. And the same mechanism applies to crypto platforms also where circumstances change immediately that directly affects the prices of cryptocurrencies.

So, here the situation also reversed with the Bitcoin price where it literally reached back around half of the rally. Even before touching the mark of $60,000, the price for Bitcoin also fell during last summer when it was traded in the $10,000s. Now there might be several factors like retail investors speculating, institutional adoption of bitcoin or increased retail as well that actually drove the price back. Although the continuous adoption of Bitcoins went on increasing until the sudden uncertainty counterbalanced the scene by causing Bitcoin price to fall.

Presently, Bitcoin really seems going on its way back but there are some reasons that induce Bitcoin price faded after it touched the all-time sky high point:

  • The first major reason became the Chinese Communist Party who had arrested nearly 1,100 people there who were dealing in Bitcoins. Although the government afterwards claimed that all those people were engaged in criminal activities, it initially published a crackdown on Bitcoin that poorly affected the sentiments of Bitcoin investors and the Bitcoin price started to drop.
  • Then second is the major conflict between making investments in the cryptocurrency ecosystem or ESG (Environmental, Social and Governance) because both platforms are desirable for institutions. And these hot arguments often lead to a concern whether Bitcoin is suitable for the environment or not. This is because Bitcoin technology really consumes a ton of electricity. Further, to fulfill the requirement of electricity consumption in Bitcoin, the excess capacity of energy might also be utilized from the massive hydroelectric dams with intention to centralize Bitcoin mining. However, Bitcoin is just in its initial stage just like the internet was in the 1990s and a lot has changed for the internet in terms of technology and so will for Bitcoins. 
  • Then the third major reason became Elon Musk’s tweet on Bitcoin that has negatively affected the sentiments of Bitcoin investors. However, this scenario has changed again where Elon Musk is presently supporting Bitcoin in rising higher. And this might further change again relying upon the bedside of Elon Musk on which he wakes up next. 
  • And the fourth reason is marginal calling which bitcoin investors actually believe in. Sounds strange, but that's right! Here Bitcoin prices usually face the highest volatility ever that leads to forced buying which eventually results in more borrowing against Bitcoin by keeping it as collateral security. So, when the prices suddenly fall, this usually gives birth to forced selling that engenders price crashes where many speculators often have to lose all their investment money.

Will Bitcoin Go Boom or Bust by the End of 2021?
Based on the current cryptocurrency payment mechanism, it can be stated that crypto adoption is really going to boost in the coming future. And Bitcoin is the most popular cryptocurrency among users. So, it is certainly going to rise in the coming years. Bitcoin users are suggested to be always prepared for a sudden drop of 50 percent of its value at any point of time. However the price decline could be substantially higher than the current price. 

Here the sudden fluctuations in Bitcoin value actually reflects the uncertainties of exchange markets in the overall world. But there is no risk like Bitcoin price will go down to zero or Bitcoin cryptocurrency being banned as well. 


Here the bottom line is that Bitcoin investment is meant for those users who are really capable enough in comfortably tackling its stomaching volatility. Overall the upside story of Bitcoin journey is strongly overriding its downside part. Bitcoin has really gone through many wild ups and downs & it can be expected to have the same in the future as well. However, it certainly holds great potential for long term investors and you can place your money behind it.