A look back at the 10 key moments in the cryptocurrency market in 2021

2021 is a special year for the cryptocurrency market, the overall market value of cryptocurrencies is at an all time high and the ecosystem is constantly evolving.

In terms of value, the total market value of the cryptocurrency market as of December 28, 2021 was $ 2.5 trillion, more than double the level of a year ago. Bitcoin has broken all-time highs and gained a market cap of around $ 545 billion, with its value increasing by almost 70%, despite its recent small gains. . The Ethereum ecosystem is booming, traders need access to further expansion, and memes like Dogecoin and Shibainu Coins have also become prominent.

More importantly, Bitcoin and other cryptocurrencies have made great strides in adoption as well. According to a temporary survey released by Crypto.com, there are around 221 million cryptocurrency holders worldwide, more than double what it was in January. Topics like NFT / metauniverse / web 3 were immediately discussed in the context.

When it comes to rules, there are conflicts and accounts. El Salvador has declared Bitcoin to be a fiat currency, and many countries, including the United States, have announced Bitcoin-based ETFs.

The cryptocurrency market has seen many happy events this year. The BiTui editorial team will bring you 10 key moments from the crypto industry in 2021.

1. The richest man in the world Musk $ 1.5 billion entered the game

As the founder, CEO, and CEO of SpaceX, as well as early entrants, CEOs, and automaker Tesla, Musk has received many accolades this year, with various new countries being referred to as 2021 the Year of Musk.

BitTweet previously said Musk announced his congratulations on Bitcoin at the end of January and that he was "definitive" but still a supporter of BTC. On February 8, 2021, Tesla announced that it had invested $ 1.5 billion in Bitcoin and would soon begin accepting Bitcoin as a payment method for its products. This news immediately ignited the entire crypto industry. According to data from the BitTweet terminal, the value of Bitcoin has increased by more than 10% since the announcement.

The richest man in the world has always supported his business as a model for low-power devices. After strong opposition from some environmentalists and investors, Tesla stopped using Bitcoin as a means of payment, regarding electronics. “Bitcoin mining and industry, especially coal, are concerned about the further increase in the use of fossil fuels, which release the heaviest emissions of all fuels,” the company wrote in a public statement.

Bitcoin fell more than 7% to $ 52,669 after the news broke. Musk added that Tesla will not sell Bitcoin and will use Bitcoin to trade as soon as the stock market moves to a more robust location.

2. Bitcoin Marketplace exceeds $ 1,000 billion for the first time

On February 19, Bitcoin traded for the first time above the $ 1,000 billion mark.

This important comes after large corporations and financial institutions started to take over cryptocurrency. In addition to Tesla, companies such as Block (formerly Square), MicroStrategy, and Marathon Patent Group have started adding Bitcoin to their assets. On balance, WeWork, Substack and insurance giant AXA have started accepting Bitcoin payments.

3.69 million dollars worth of digital artwork created by NFT Wave

At Christie's on March 11, digital artist Beeple's NFT artwork "Every Day: The First 5000 Days" sold for $ 69.3 million, and was selected as one of our top top artists. range. It is marked with an exclamation mark. The competition makes Christie the first major retailer to sell all of the art used by NFTs.

This sale brings the NFTs directly into the visual field. Around the same time last year, NFTs were still a niche business and have now grown into a big result. This year we have seen Nike, Adidas, Playboy, Budweiser, Paris Hilton and other big names or artists enter the space. , the monthly trading volume of the NFT market has also reached thousands of dollars.

According to data from DappRadar, the market value of NFT reached $ 10.67 billion in the third quarter and is expected to reach $ 22 billion in 2021 and only $ 100 million in 2020.

As the market for NFT grows, it grows as more and more applications are used to control the transition to pragmatic NFTs. NFTs are considered to be an integral part of the Web3 industry. That is, it is the heart of the meta world. As we move into 2022, we will still be in the depths of the NFT boom.

Alex Svanevik, CEO of Nansen, said, “DeFi brings investments to the crypto space, and NFTs bring the public to the crypto space.

4. "Thawj Cryptographic Share" Coinbase revealed

On April 14, 2021, the Coinbase cryptocurrency exchange officially went public in the United States, becoming its “first cryptocurrency listing” and the largest direct listing in NASDAQ history. Coinbase closed at $ 32,828 on its first day of listing, and when all transactions were included the company was valued at $ 85.7 billion.

Many people must estimate the importance of this situation, especially after the COIN share price fell (closing at $ 280.27 on December 27). However, regardless of the current price, this event is very important for the cryptocurrency market.

The completed list is a win-win for the entire industry and a symbol of financial recognition and support for the industry. Across the industry, Coinbase's IPO also means that U.S. regulators are prepared to work legally with crypto assets. Coinbase's move is having a positive impact on other trading partners as well, and as previously reported, another cryptocurrency exchange, Kraken, has also decided to go public in 2022.

5.China Limited Total Crypto

2021 is turning into a different year for Bitcoin mining. On May 21, the Chinese central government released a report condemning the crackdown on Bitcoin trading and mining. On June 9, a bitcoin mine in Xinjiang's Zhundong Economic Zone was forced to close, according to Qinghai. From June 18 to 26, 26 Bitcoin miners in Sichuan province were shut down. At the same time, Bitcoin fell below $ 30,000 for the first time since January, and its value fell almost 30%.

On September 24, the Financial Services Corporation released a statement declaring that virtual currencies are not legally binding with fiat money. Any business dealing with virtual rewards is illegal. It has become China's strongest symbol for entering the crypto industry.

China's persecution has created opportunities for the overseas bitcoin mining industry, and the United States has slowly become the largest bitcoin mining market and industry as Chinese miners seek out "the sea." According to statistics from the University of Cambridge, the United States has become the number one place for Bitcoin miners. Mining infrastructure is slowly emerging in North America, Russia, Central Asia and Europe.

6. El Salvador became the first country to recognize Bitcoin as a valuable resource.

El Salvador is a small coastal country in Central America that became the first country in the world to legalize Bitcoin. On June 9, 2021, the Bitcoin Bill was passed in the National Assembly, and shortly thereafter, the value of Bitcoin rose 5% to $ 34,239.17.

According to the Bitcoin law, around 70% of Salvadorans do not have access to traditional financial services, so cryptocurrencies have been seen as a way to promote financial literacy. On September 7, El Salvador unveiled Chivo Wallet on the day the Bitcoin law went into effect.

Additionally, a small country in Central America is considering establishing a Bitcoin city. According to Reuters, Bitcoin City should be a circle (like a coin) and the giant Bitcoin logo is placed in the central square. The city will be formed near the Conchagua volcano and will use national geothermal energy to support the city and its cryptocurrency mining.

El Salvador was piloting bitcoin mining at another hydroelectric site adjacent to the Tekapa volcano. According to Bukele, residents of Bitcoin do not have to pay tax on income, assets, capital gains, or tax returns. The construction of the city will take into account the attractiveness of foreign capital.

7. Musk "Shipping" Dogecoin

Social media, especially Twitter, appears to play an important role in the cryptocurrency industry. Affected by the dramatic performance, a few short tweets from celebrities like Musk can drive the prices up and down.

In February 2021, Musk tweeted "Doge" with a photo of a rocket fired into the sky. A few minutes later, Dogecoin prices started to rise and investors like FOMO (fear of disappearing) speculation rushed into the market.

Musk also hinted in his tweets that Dogecoin could become "the future of the world." After half-truth, half-false tweets, Dogecoin started returning in February, and in May Dogecoin prices soared before Musk appeared as a guest on Saturday Night Live (SNL). On May 8, when Musk joined the SNL show, Dogecoin climbed to around 73 cents.

Although many believe that the DOGE bubble will burst and explode, the token still holds a place in the cryptocurrency market. As of December 27, Doge was trading at $ 0.28, ranking 12th by market.

8. Announces the first Bitcoin Futures ETF in the United States

On October 19, the ProShares Bitcoin Futures ETF was publicly announced on the New York Stock Exchange under the symbol "BITO". Instead of investing directly in Bitcoin, Bitcoin Futures ETFs invest in Bitcoin Futures contracts, which are contracts to buy and sell assets at an agreed price for a specific future. . These new products allow people to trade through their regular investments, overcoming the interference and security concerns of cryptocurrency exchanges.

While ETF and Bitcoin prices will no longer need to be competitive, the ProShares Bitcoin Futures ETF presents "one of the first highs in ETF history", with market volume of just 1 billion of US dollars at the close, and the second highest. Day Trading in ETF History He wrote many stocks. US Carbon Transition Rdnss secures second place with Blackrock.

Several years ago, crypto companies were busy announcing the first US Bitcoin spot ETF. However, the US Securities and Exchange Commission (SEC) is rushing to acquire the assets, citing the lack of regulation of the Bitcoin market and concerns about fraud and fraud control. SEC Chairman Gary Gensler said that under the Securities and Exchange Commission Act of 1940 organizations were open to future Bitcoin ETFs that could manage their mutual funds and provide "critical client protection." .

9. Bitcoin successfully using the Taproot soft fork.

On November 14, the Bitcoin network completed the Taproot soft fork, the first Bitcoin development in four years.

Taproot's versatile fork brings features that improve privacy, scalability, and online security. The development of the taproot is also unlocking the potential of smart contracts, reducing the number of brokers in the Bitcoin market.

A fork occurs when a blockchain code changes drastically and there are two ways to code forward. Therefore, blockchain users must define and support one chain and not another. This can lead to differences in the crypto community and a stable fork to create more tokens. For example, Bitcoin Money is created by the fork of the Bitcoin blockchain.

10. The power of the cryptocurrency lobby was born when the US infrastructure law came into effect.

In recent years, people have paid more attention to the management of cryptocurrencies. U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said some cryptocurrencies fall under the securities category, while Fed Chairman Powell and Treasury Secretary Yellen have put repeatedly guarded against the use of cryptocurrencies, in particular. . And guess ...

On November 15, US President Joe Biden signed the Bipartisan Infrastructure Act, which includes tax rules applicable to digital assets such as cryptocurrencies and NFTs.

The most inconsistent term is the definition of “employee”. Industry insiders generally believe this definition is too broad to involve others in the crypto space, such as miners, software developers, transmission validators, and node operators. Each person is required to report digital assets greater than $ 10,000 to the Internal Revenue Service (IRS).

This has raised concerns in the cryptocurrency community. Many lobbyists have appeared. The Blockchain Association and the Senators represented by Pat Toomey and Cynthia Lummis have done their best to approach the term "broker". The strike led to the unification of crypto lobbies and crypto experts.

Ron Hammond, Executive Director of the Blockchain Association, said: “Fighting the law has made everyone successful. The broker is welcoming representatives from the crypto industry. It is a joint venture. “I think now is the time to make a decision,” said Kristin Smith, director of the Blockchain Association. "It has become an exchange for the Washington cryptocurrency industry to join."

According to a December report from The Economist, cryptocurrency companies spent $ 5 million lobbying U.S. lawmakers in the first quarter of 2021.

enter at the end

This year has seen many important developments in the crypto industry. Bitcoin, the mining industry, and the cryptocurrency industry have become popular around the world. New blockchain applications like NFT and Metaverse will still be in 2021. In 2016, people don't just think about the value of cryptocurrencies going up or down, which makes 2021 an interesting and interesting year for them. look to 2022..