While Bitcoin (BTC) may have led a crypto market price surge at the beginning of November, the sector has since experienced a slight decline amid an array of international concerns.
Most importantly, crypto prices appear to have plunged sharply in India’s domestic exchanges, following reports that the nation’s government is planning to introduce a bill that targets token trading this winter.
But what inspired the initial spike at the beginning of the month, and what does the near-term future hold for BTC and the wider crypto market as a whole?
Appraising November’s Crypto Surge
In the first week of November, BTC and Ethereum (ETH) led a significant crypto market charge, with the former achieving a record price high.
More specifically, BTC peaked at an impressive $66,425 (£49,836.79) on Monday, 8th November, beating the previous high of around $63,000 (£45,881.61) recorded on April 15th.
Of course, the previous high precipitated a concerted slump and market collapse over the subsequent eight weeks, falling to less than $30,000 (£21,649.85) by July 20th and sending investors into a temporary panic.
Analysis of such trends show that BTC and other crypto assets have endured a particularly volatile year to date, with frequent surges and short-lived bull runs followed by noticeable and marked declines.
Such peaks and troughs appear to have been influenced by a wide range of global developments, including the introduction of more stringent restrictions in the Chinese market and the decline of fiat currencies and concerns of rampant inflation across the globe.
So, while demand and trading activity has diminished in some regions, those who normally practice forex trading with brokers such as Tickmill in the UK and the US have continued to embrace crypto assets on a mass scale.
The Future Outlook for the Cryptocurrency Marketplace
If we drill down a little deeper into these individual peaks and troughs, the most interesting takeaway is that BTC and similar assets are continuing to rise in value overall.
This is borne out by annual charts, which reveal that despite the volatility experienced through 2021, the price of BTC has actually risen from £12,788.09 on November 25th, 2020 to £44,109.56 just one year later.
This represents just short of a four-fold increase over the last 12 months, with each trough seemingly followed by a sustained bull run that sends the price of crypto assets incrementally higher.
Experts predict that this trend will continue for the remainder of 2021 and beyond, potentially peaking at $98,000 in December and breaking through the $100,000 barrier early in the New Year.
Of course, this is far from being a conservative forecast, but it suggests that the price of BTC and other established tokens will continue to rise in the longer-term. This makes it a viable buy-and-hold asset in the current marketplace, and one that will continue to appreciate sharply in value over time.
