Footprint analysis: after the big BTC rally in 2021, what’s in store for 2022? | Annual Report 2021

All-time highs and long-awaited institutional acceptance made 2021 the most important year for BTC since its inception.

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

During this period, the general fluctuations in the price of the coins remained between $ 45,000 and $ 60,000.

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

As the largest cryptocurrency by Market cap, the volatility of BTC affected the entire market.

In the first half of 2021, BTC’s trading volume was roughly $ 60 billion. In the second 6 months of the year, the volume dropped to between $ 20 and $ 40 billion. This had a great impact on political events.

Footprint analysis: BTC token trade volume

Last year’s milestones include:

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

Looking back at 2021, we’ll take a look at the major events that BTC experienced in each of the four quarters.

Footprint Analytics - Daily BTC Price Growth Rate
Footprint Analysis: Daily BTC Price Growth Rate

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 bought $ 1.5 billion worth of Bitcoin.

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

According to data from Bitcoin Treasuries, Tesla currently owns 42,902 BTC, ranking second among companies that are publicly traded with BTC, valued at $ 1.84 billion, or 0.204% of the total BTC supply of 21 million.

Screenshot Source: Bitcoin Treasures (Public Companies Owning Bitcoin)

Q2: BTC Price Falls As The Coin Faces Challenges

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

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

Q3: El Salvador makes BTC legal tender

On September 7, El Salvador became the first country to declare BTC legal tender, which means residents can download the government digital wallet for free and pay no capital gains tax in Bitcoin. People will be able to conduct business transactions, pay taxes, and receive wages with Bitcoin.

Also, people who invest 3 BTC through the country’s wallet will be able to obtain Salvadoran residency. The move is one of the major milestones in the history of BTC.

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

Screenshot Source: Bitcoin Treasures (countries and governments that own Bitcoin)

Q4: First US Bitcoin ETF for Bitcoin Launched

In October, the first Bitcoin futures ETF was approved in the US, followed by the listing of the Valkyrie Bitcoin ETF. It wasn’t until November that Van Eck also launched his own bitcoin ETF.

Furthermore, the fourth quarter also saw the computing power for mining shift to the US, Russia, Canada and other countries after China’s ban, ushering in new all-time highs.

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

Screenshot Source: Bitcoin Treasures (ETFs Holding Bitcoin)

Thoughts on Bitcoin

While BTC has been traded between small retail investors and crypto believers for the past 10 years, entire countries and established institutional players joined in 2021.

The price of BTC also went through multiple dumps, but eventually closed stable above $ 40,000 at the end of the year.

Going into 2022, bitcoin appears to be at a point where the policies of a country or the opinion of a person can no longer shake its price trajectory.

Benefits for CryptoSlate Reader

From January 11 to 25, 2022, click this hyperlink in CryptoSlate for a free 7-day trial of Footprint Analytics. New users only!

January 10, 2022, [email protected]

Data source: Footprint analysis – BTC 2021 Dashboard

This article is part of our Year in Review series.

What is Footprint

Footprint Analytics is an all-in-one analytics platform for visualizing blockchain data and discovering insights. Clean and integrate data chain so that users of any level of experience can quickly start researching tokens, projects and protocols. With over a thousand dashboard templates plus a drag and drop interface, anyone can create their own custom charts in minutes. Discover blockchain data and invest smarter with Footprint.

Posted in: Bitcoin, Analysis

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