2021 was a significant year for digital currency investments, giving Bitcoin and its closest rival, Ethereum, a considerable boost. Many genuine people have invested in this crypto at https://bit-qt.app/, a reliable trading platform.
Nobody imagined that the upward trend of 2021 would be practically pulverized by the crypto winter of 2022. Although a better 2023 is expected for the digital financial market, all that remains is to follow the events.
The harsh financial measures, the war between Russia and Ukraine, and the bankruptcy of the exchange platforms were some elements that influenced the decrease in market value, reaching an annual total of more than 3,900 million dollars.
Digital currencies fall to their lowest levels.
By January 2022, the crypto market registered million-dollar losses of close to 130,000 million dollars; consequently, the price of digital currencies plummeted.
This situation generated great anxiety and uncertainty among its beneficiaries, which is why many considered the ideal time to acquire more cryptocurrencies.
At the same time, some are more conservative and even prefer to sell for fear of losing vast amounts of money.
The values registered for Monday, January 24, reached a decrease of almost 4% of its price to date, representing a value of USD 33,800 in terms of the leading cryptocurrency of the Bitcoin market.
For its part, the second cryptocurrency, Ether, had a fall that reached a margin of 7%, leaving it at an estimated price of USD 2,240.
Both cryptocurrencies for 2021 showed great strength in the face of negative comments that caused their value to fall; they never reached this low value; they almost advanced 50% of their all-time highs.
Investment experts indicate that not only cryptocurrencies suffered falls in value, but also stocks suffered severe blows in terms of their prices, which suggests that the digital market was affected by the strict monetary policies of the United States Fed.
Cryptocurrency all-time highs
Investments in crypto assets and digital currencies in 2021 set a new record for exchange operations and digital investment.
Users and investors found digital currencies a new refuge that would allow them to increase the value of their savings without suffering losses due to the economic measures of the global financial environment.
For the second and third quarters of the year 2021, the cryptocurrencies had sudden movements that allowed, in some cases, to surprise many with the unexpected prices they reached.
Not only has Bitcoin reached its maximum value, but Ether skyrocketed its price, generating million-dollar profits for its users, where the values of these cryptocurrencies reached USD 66,000 in the case of Bitcoin and almost 4,500 dollars for Ether.
Although Bitcoin decreased in value after its maximum, it remained in the highest valuation range that a cryptocurrency has ever had, making it maintain its leadership as a digital currency.
Although the financial expectations of both digital currencies have varied considerably, it is crucial to consider the upward stability that Ether has. However, its value is lower than that of bitcoin, intending to maintain and take small but stable steps.
Cryptocurrencies and Stocks
One of the most controversial topics is the return on investment in cryptocurrencies or, preferably, in stocks.
Although they are two different sources of investment, both cryptocurrencies and stocks can obtain value on the stock market.
Whether digital or traditional (Forex), everything in the financial market is valued based on the price at which assets or cryptocurrencies are listed. Therefore, if its price increases, it indicates higher demand, which benefits the parties involved.
Their nature is completely different; their market distinguishes them; even though the risks are various, cryptocurrencies are highly volatile and can manage stocks with less susceptible stability.
Stocks are backed by a particular company, while cryptocurrencies only back the top support of their users by investing in them.
Conclusion
The digital market has become a new investment strategy for many; The accessibility to cryptocurrencies has made it possible to invest more and more capital in this financial market.
It is essential to recognize that investing in stocks or cryptocurrencies represents a form of gambling, where users compete to increase or decrease these assets, which will generate eventual income.
The risks are always present, except that cryptocurrencies have made it possible to open up a market that has never been exploited.
More and more options are being created to use and manage cryptocurrencies as a digital currency for exchange and payment, which indicates that even with their volatility, the number of people who want to invest in them is increasing.
