Bitcoin is on the verge of hitting an all-time high, thanks to the debut of the first U.S. bitcoin futures exchange-traded fund, which investors believe would make the cryptocurrency more accessible to a wider range of investors.
However, the introduction of cryptocurrency ETFs in the world’s largest economy isn’t the only factor driving bitcoin’s 2021 rollercoaster. Here are some graphs that show the dynamics of its ascent to a new high.
Bitcoin is infamous for its extreme price swings, with its 13-year history littered with dizzying ascents and equally dizzying descents. This autumn’s performance has been no different. Since mid-September, the world’s largest cryptocurrency has risen by more than 60%, with gains of more than 46% in October alone.
This year, though, it has seen some severe drops. After reaching a high of $64,895 in mid-April, bitcoin has dropped by more than half in just 35 days, owing to a Chinese crackdown on cryptocurrencies.
Investors are increasingly expecting that major central banks would hike rates as a result of growing inflation in several global economies. Bitcoin’s alleged inflation-proof features, according to some market participants, have also fueled recent advances.
Bitcoin has gained about 85% from the beginning of July. Some inflation-hedging investments have performed better, with inflation-linked bonds (the US TIPS Index) gaining over 140 percent. Over the same time period, gold has remained unchanged.
