The world has been seeing bitcoin and digital currency evolves for the past decade. Still, it wasn’t until recently that these digital currencies gained exceptional momentum in the past five years.
While there is a debate on how this digital currency can be safely regulated, it hasn’t affected these currencies’ growth. While bitcoin has risen exponentially in the past six months and peaked at 58,354 USD, it did see a sharp fall on Monday 22nd of February 2021 and fell by 6 percent to 54,941 USD.
The sudden fall in the valuation has been linked to a selloff in global equities and curbed risk appetite. Bitcoin has been the most popular cryptocurrency, and increases in its valuation to such extent have shown what potential the currency has.
The key factors driving the growth and popularity of the very popular cryptocurrency would be its acceptance from mainstream giants like Mastercard, Tesla, and BNY Mellon, to name a few.
While the sharp upsell and fall has been linked to news catalysts, the traders have denied this and stated that the movement was primarily technical.
The cryptocurrency market valuation hit a record high of 1 trillion USD on Friday and achieved a new benchmark in its trade history.
So with this new high in the digital currency market, we expect to see a significant change in the financial domain. If the trend continues, it will shake up the financial aspects of our cash-fueled economy. So it will be interesting to see how these digital currencies pan out in the more digital future we are heading in.