After yesterday’s rally, Bitcoin has started to shy away once again from breaking above its resistance of 50K. Bulls are only likely to return if the Bitcoin breaks this important price level and stays above it. Overall, 2021 has been a landmark year for cryptocurrencies, with the blockchain space attracting a significant amount of capital thanks to the launch of exchange traded funds (ETFs) and greater awareness among investors.
Financial products that track the performance of cryptocurrencies have more than doubled from 35 at the end of last year to 80 now. Assets in the digital sector have hopped from $24 billion at the beginning of the year to $63 billion.
Over the last year, crypto markets have been extremely volatile, with Bitcoin falling roughly 56% between April and June and then reaching its all-time high in November. Due to a recent sell-off in financial markets caused by concerns about the Omicron variant, Bitcoin is currently trading below $50,000. Despite the volatility, it is important to note that inflows to the crypto sector have been very consistent, and institutional investors are also showing increased interest in the space.