Markets.com Logo
euEnglish
LoginSign Up

Cryptocurrency update: Bitcoin and the search for $50,000

Dec 17, 2021
5 min read
Table of Contents
  • 1. Cryptocurrency update
  • 2. Bitcoin struggles to break $50,000
  • 3. Will institutions bypass Bitcoin in the future?
  • 4. Crypto rug pull scams see investors lose $2.8bn across 2021

Bitcoin’s downward stagger continues. Forget talk of $100,000. Let’s focus on breaking $50,000 again by the end of the year.

Cryptocurrency update

Bitcoin struggles to break $50,000

Bitcoin’s torrid time continues. Up until very recently, we were discussing whether Bitcoin could break $100,000. Now, it’ll be lucky to crack over $50,000 in the coming weeks.

Despite getting a bump on the Federal Reserve’s tapering and rate hike news on Wednesday, Bitcoin continues to trend downwards.

Bitcoin lost 2.5% on Thursday following a 1% upward bump on Wednesday. At the time of writing on Friday 17th December, the token was still in the red, trading a further 2% lower. BTC is now trading for around the $47,236 mark.

So much for a relief rally. Bitcoin did reach above $49,000 briefly on Wednesday but looks unlikely to recapture the fighting spirit that saw it climb to all-time highs in November. The token is currently about 30% away from those levels.

Other coins are faring poorly too. Looking at charts throws back a see of red and negative numbers.

Ethereum, the world’s second most popular token by market cap, is down 3.9% on the day. ETH is currently trading for around $3,875 level – roughly $1,000 off its all-time high. Even so, Ethereum is still up several hundred percent year-on-year but appears to be struggling at the moment.

We’ve often said it, but Bitcoin is a market bellwether. The general trend is such that when Bitcoin underperforms, the wider cryptocurrency market underperforms with it. That’s what we’re seeing today. So much for a fairy-tale ending to 2021 for Bitcoin.

What we have been seeing more of in recent weeks is the performance of Bitcoin and digital tokens against stock markets. The current downward swing in BTC prices is partially linked to Wall Street. After some of Europe’s central banks announced their plans to combat inflation, the S&P500 and Nasdaq dropped – 2% in the cast of the Nasdaq – which in turn caused a general sinking of crypto prices.

Will institutions bypass Bitcoin in the future?

While some are hoping Bitcoin will cross the $100,000 Rubicon, others are looking at decentralised finance (DeFi) from a more practical perspective. In this context, some businesses and organisations may look to forgo BTC investment in lieu of more developed blockchain tokens.

Clayton Gardner, CEO of cryptocurrency investment management firm Titan, believes firms will look to invest in currencies and blockchains that feature smart contracts.

Bitcoin has never really been associated with smart contracts. For context, a smart contract is an agreement between two parties programmed into blockchains. When the conditions between the two parties are met, the program is run and executed.

A big network upgrade occurred in mid-November giving Bitcoin this functionality. However, other blockchains, like Ethereum’s, were designed from the ground up with smart contracts in mind. As such, they are more developed and may be institutions preferred choice as the world moves towards mass crypto adoption.

“Bitcoin was originally seen as a macro speculative asset by many funds and for many it still is,” Gardner said. “If anything solidifies its use case, it’s a store of value. It’s not really used as originally intended, perhaps from a medium of exchange perspective.”

Gardner added: “Bitcoin is still one of the most secure blockchains, but I think layer-one, layer-two blockchains beyond Bitcoin, will handle the majority of transactions and activities from NFT (nonfungible tokens) to DeFi.

“So, I think institutions see that and insofar as they want to put capital to work in the coming months, I think that could be where they just pump the capital.”

Crypto rug pull scams see investors lose $2.8bn across 2021

A report from Chainanalysis, as reported by Coindesk, cryptocurrency investors lost $2.8bn in rug pull scams this year.

A rug pull scam in the crypto world essentially involves scam artists doing seemingly legitimate work on blockchain networks. They will then issue a coin on decentralised exchanges. Victims will then pick up the tokens in the hope that they will appreciate in the usual manner. During this time, liquidity pools can run into the tens of millions of dollars.

Once the pool is large enough, the rug is pulled out from investors feet. The scammers will pull all liquidity out of the pools and remove their token from any exchanges, pocketing the cash.

Rug pulls represent 37% of all illicit crypto-generated revenues generated in 2021. A total of $7.7bn was created by illegal or illicit means this year. Worryingly, rug pulls only accounted for 1% of the total created in 2020. Scammers are getting smarter.

We are still seemingly in the Wild West when it comes to crypto. Such an increase in scams of this nature really strengthens the case for careful regulation. It also backs up some commentators’ fears that investors will lose their money, either through being scammed or general naivety over what crypto investment actually entails.

Keep safe and only invest or trade crypto from trusted sources. If something looks too good to be true, it usually is.


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Written by
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    -0.57%
  • EUR/USD

    chartpng

    --

    -0.17%
  • Cotton

    chartpng

    --

    -0.03%
  • AUD/USD

    chartpng

    --

    0.04%
  • Santander

    chartpng

    --

    -0.63%
  • Apple.svg

    Apple

    chartpng

    --

    0.03%
  • easyJet

    chartpng

    --

    -0.50%
  • VIXX

    chartpng

    --

    0.00%
  • Silver

    chartpng

    --

    0.01%
Table of Contents
  • 1. Cryptocurrency update
  • 2. Bitcoin struggles to break $50,000
  • 3. Will institutions bypass Bitcoin in the future?
  • 4. Crypto rug pull scams see investors lose $2.8bn across 2021

Related Articles

VAPE Stock Soars 600%: What’s Happening with CEA Industries?

VAPE Stock Soars 600%: CEA Industries, known by its ticker symbol VAPE, has recently seen a remarkable surge in its stock price, soaring by 600%.

Ghko B|about 15 hours ago

Trending Stocks Today: PLTR Stock , MCVT Stock, SMCI Stock, NVDA Stock

Trending Stocks Today: in the ever-evolving landscape of financial markets, certain stocks catch the attention of market participants due to their innovative approaches and strategic developments.

Frances Wang|1 day ago
Interest rate cut percentage

Week Ahead: Interest Rate Decisions from Fed, BoC, and BoJ in Focus

The U.S. JOLTs job openings for May stood at 7.769 million, with June’s figure (due 29 July, 1400 GMT) expected to fall to 7.1 million, signalling a cooling labour market under tight Fed policy.

Tommy Yap|2 days ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The www.markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.