Bitcoin, the world’s most valuable crypto, reached an all-time high of approximately $67,000 only a week ago. But investors have been replacing it with Shiba Inu.
On Wednesday, the value of one bitcoin fell over 5% and was trading 12% below last week’s record levels (around $59,000). Such a short-time drop would be considered a market correction for any other asset, like a bond or stock. But for BTC, it seems just like a usual business. Crypto investors started to accept the idea that bitcoin is volatile.
Despite the fact that there are over 13,000 cryptocurrencies listed on CoinMarketCap, BTC remains the dominant digital currency. They range from dogecoin and Shiba Inu to more complex tokens with even stranger names, such as Elon’s Marvin, Baby Floki Billionaire, Dogelon Mars, and Kitty Inu.
Predictions for Bitcoin price
Now in circulation, the total number of BTC has a market value of around $1.2 trillion. That’s almost half of the size of the whole crypto market, valued at $2.48 trillion. Ethereum is worth about $476 billion, while all the other cryptos are worth less than ether and bitcoin. This situation probably will not change soon. Last week, the ProShares BTC Strategy ETF started trading, followed by the introduction of Valkyrie Bitcoin Strategy ETF. The ProShares ETF has more than $1.3 billion under management. Some crypto experts claim that BTC prices might hit $100,000 by the end of 2021 or in early 2022. Other bitcoin missionaries are predicting even higher price targets. Venture capitalist Tim Draper said that bitcoin might exceed $250,000 by the end of 2022. In Tuesday’s latest earnings report, Brokerage company Robinhood said that the crypto movement decreased from record highs in the prior quarter.
In addition to more average investors purchasing bitcoin ETFs, some top institutional investors, including George Soros and Paul Tudor Jones, started to buy bitcoin.