Footprint Analytics: After BTC’s Big Rally in 2021, What’s in Store for 2022? | Annual Report 2021

Record highs and long-awaited institutional acceptance make 2021 the most important year for BTC since its inception.

According to Footprint Analytics, the price of BTC rose from $29,022 at the beginning of 2021 to an all-time high of $67,674 on November 8, an increase of 133%.

During this period, the total fluctuations in currency rates remained between $45,000 and $60,000.

Footprint Analytics - BTC Price in 2021
Footprint Analytics – BTC Price in 2021

As the largest cryptocurrency by market capThe volatility of BTC affected the entire market.

In the first half of 2021, the volume of BTC trading reached nearly $60 billion. In the second six months of the year, the volume dropped to around $20-40 billion. This has had a significant impact on policy events.

Fingerprint Analytics – BTC Token Trading Volume

Highlights from the past year include:

  • Tesla is (temporarily) accepting payments in Bitcoin.
  • El Salvador is submitting legal tender for BTC.
  • MicroStrategy tripled its holdings to 122,000 BTC.
  • Goldman Sachs offers cryptocurrency investment tools to clients in the second quarter.
  • Berkshire Hathaway has invested $500 million in Nubank, which plans to offer a Bitcoin ETF.
  • The number of cryptocurrency ATMs has exceeded 24,000, worldwide.

Looking back in 2021, we will analyze the major events that Bitcoin has experienced in each of the four quarters.

Footprint Analytics - BTC Daily Price Growth
Footprint Analytics – BTC Daily Price Growth

Q1: Tesla accepts BTC payments

On February 8, Tesla began accepting Bitcoin as a form of payment for its products for a short time, and also purchased $1.5 billion worth of Bitcoin.

This pushed BTC to a new high of $56,000 and made institutional investors and VCs around the world take notice.

According to Bitcoin Treasury data, Tesla currently owns 42,902 BTC, ranking second among companies listed with BTC, with a value of $1.84 billion, or 0.204% of the total BTC supply of 21 million.

Screenshot Source – Bitcoin Bonds (Public Companies That Own Bitcoin)

Q2: Bitcoin price drops as the coin faces challenges

On May 18, the People’s Bank of China and major regulators issued a joint declaration banning business related to virtual currencies, and Chinese banks subsequently announced that they are prohibited from conducting transactions related to virtual currencies such as BTC.

On June 9, the Chinese government banned mining, sending BTC down from $59,000 to $34,000. Additionally, on May 13, Tesla reversed its decision to accept payments in BTC due to concerns about the environmental impact of the digital currency.

Q3: El Salvador submits legal tender for BTC

On September 7, El Salvador became the first country to announce legal tender for BTC, which means residents can download the government’s digital wallet for free and not pay capital gains tax on Bitcoin. People will be able to conduct business transactions, pay taxes, and receive salaries with Bitcoin.

Moreover, people who invest 3 BTC through a state wallet will be able to obtain Salvadoran residency. This move is one of the major milestones in the history of BTC.

According to Bitcoin bond data, the countries and governments that currently own BTC include Bulgaria, Finland, and Ukraine.

Screenshot Source – Bitcoin Bonds (Countries and Governments That Own Bitcoin)

Q4: The first US Bitcoin ETF launched for Bitcoin

In October, the first Bitcoin futures ETF was approved in the US, followed by the listing of the Valkyrie Bitcoin ETF. Van Eck didn’t launch its Bitcoin ETF until November either.

In addition, the fourth quarter also saw mining computing power shift to the United States, Russia, Canada and other countries after the Chinese ban, bringing new all-time highs.

Currently, the Grayscale Bitcoin Trust holds 648,069 bitcoins, or 3.086% of the total BTC supply of 21 million. All other entities under 50,000 coins.

Screenshot Source – Bitcoin Bonds (ETFs that own Bitcoin)

Ideas about Bitcoin

While BTC has been trading among small individual investors and crypto-believers over the past 10 years, 2021 saw the emergence of entire countries and established institutional players.

Bitcoin price went through multiple dumps as well, but finally closed stable above $40K towards the end of the year.

With the start of 2022, Bitcoin appears to have reached a point where no country’s policies or one person’s opinion can any longer destabilize its price trajectory.

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January 10, 2022, [email protected]

Data Source: Footprint Analytics – 2021 BTC Dashboard

This article is part of our “Year in Review” series.

What is a fingerprint?

Footprint Analytics is an all-in-one analytics platform for blockchain data visualization and insights discovery. It cleans and combines on-chain data so users of any experience level can quickly begin searching for codes, projects, and protocols. With over a thousand dashboard templates as well as a drag-and-drop interface, anyone can create their own custom layouts in minutes. Discover blockchain data and invest smartly with Footprint.

Publication date: Bitcoin Analysis

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