VIETNAM, December 30 – Illustration of Bitcoin. AFP/VNA Picture
By Ly Ly Cao
HÀ NỘI — Regardless of the volatility available in the market, cryptocurrencies nonetheless witnessed a robust yr, with some currencies posting positive factors of a minimum of 5,000 per cent in market worth, bringing large earnings to traders.
The whole market capitalisation was round US$771 billion firstly of the yr and it is now at $2.2 trillion.
Some widespread cash corresponding to Bitcoin and Ethereum have climbed by 35-45 per cent in worth in 2021. Nevertheless, earlier than reaching the present steady state, Bitcoin had seen some sturdy corrections.
In mid-February, Bitcoin surpassed US$1 trillion in market worth for the primary time as some main corporations like Tesla began utilizing their stability sheets to purchase Bitcoin. The largest crypto in market capitalisation hit $65,000 in April earlier than plunging greater than 50 per cent in Could. The downtrend continued in June following Elon Musk’s tweets in regards to the environmental affect of mining and China’s tightening of crypto transactions.
The sell-off induced the costs of some currencies to drop as a lot as 30-40 per cent in a number of hours. However Bitcoin consumers returned in September and the crypto worth broke over the $69,000 degree, then Bitcoin recorded the longest shedding streak. Bitcoin is progressively climbing again within the final days of 2021, buying and selling at round $51,000.
The cryptocurrency market additionally acquired lots of constructive information, together with the biggest US cryptocurrency alternate Coinbase efficiently itemizing on Nasdaq, partly affirming the place of cryptocurrencies within the funding market.
Some cash have posted extraordinary positive factors this yr, up over 5,000 per cent corresponding to BakeryToken (BAKE), up greater than 6,000 per cent, Fantom (FTM), up over 7,500 per cent and Gala (GALA) – a community-based blockchain gaming platform – even rising over 40,000 per cent.
Due to this fact, it isn’t exaggerating to say crypto is probably the most spectacular funding channel of the yr.
Phan Dũng Khánh, Head of Funding Advisory at Maybank Kim Eng, mentioned that there are two widespread funding channels in 2021, that are securities and digital property.
“Digital property, together with cryptocurrencies, are a buying and selling channel that has not been recognised by legislation, however the variety of traders taking part available in the market continues to be very giant,” Khanh mentioned.
A report from Chainalysis, a blockchain analytics agency, confirmed that Việt Nam ranks fourth among the many largest nations when it comes to earnings earned from cryptocurrency, behind China, Japan and South Korea.
Of which, Vietnamese traders have earned $400 million in 2020 from investing in Bitcoin alone, rating thirteenth on the planet. Beforehand, in response to a survey by Finder and Statista, Việt Nam additionally grew to become the world’s prime nation when it comes to the proportion of the inhabitants proudly owning cryptocurrencies.
Đào Tuấn Anh, a banker, mentioned that he has invested round $3,000-4,000 in cryptocurrencies since Could. “Due to social distancing, I am unable to go to work and have lots of free time, so I appeared for funding channels and the crypto market is kind of widespread now,” Tuấn Anh mentioned.
“I do not spend a lot on this channel since it’s nonetheless new to me. I select to allocate my capital in several digital cash, together with Bitcoin.
“Regardless that the crypto market was extremely unstable and Bitcoin has dropped lately, I nonetheless gained 15 per cent.
“With different cash, some I gained 30 per cent, however some misplaced as much as 50 per cent.”
Though there are forecasts concerning the downtrend of cryptocurrencies subsequent yr, many specialists nonetheless imagine that the market will proceed to be lively.
Because the crypto market may be very dangerous, with many pretend crypto exchanges in Việt Nam, traders ought to study and perceive the property they’ll put money into. In the meantime, choosing the right time to affix the market can also be a vital issue. — VNS
