Significant spike in cryptocurrency prices during 2021

Mohamed Alaa El-Din
3 Min Read

Cryptocurrency prices increased remarkably in 2021, although their value has fluctuated throughout the year but overall it has made solid profits.

According to the Coin MarketCap platform, the value of bitcoin increased by 52.6% over the past year, as its value rose from $29,600 last January to $48,400 at the close of trading on 31 December 2021.

Over the course of the year, bitcoin prices moved up and down, as the value of the bitcoin in February reached $58,000 before it started fluctuating. The value of one bitcoin reached about $61,500 in mid-March.

Bitcoin recorded its highest price in 2021 on 20 October, when it reached $66,900 before falling again, to conclude the year’s transactions at $48,400 per unit.

The year 2021 also witnessed a growth in the value of the digital currency Ethereum, which started the year at a price of $749.2 per Ethereum, while it concluded the year at a price of $3,800 at the end of transactions in 2021.

Binance currency also achieved strong growth in 2021, where the currency started the year at a price of $38.9, to grow throughout the year and closed in 2021 at a price of $527.7.

Digital currencies are virtual currencies that do not have a physical presence and are not covered by tangible assets, are traded over the Internet, are not issued by any central bank, are not under the supervision of any regulatory authority and are not controlled by any central authority.

Cryptocurrencies are mined by thousands of computers around the world that validate transactions and add more of these coins to the system.

Bitcoin is the most famous digital currency, but it is not the only one that has become popular in recent years, as the number of these currencies currently reaches thousands, especially after the first big rise of Bitcoin in 2017, which highlighted this field and trading in it, and thus the emergence of more of these currencies.

On the CoinMarketCap platform alone, about 7,714 encrypted digital currencies were traded, led by Bitcoin, in addition to some other digital currencies that became famous after the high prices of Bitcoin and the inability of some to trade it, such as Ethereum, Dogecoin, Litecoin, and others.

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