HANOI (Vietnam Information/Asia Information Community): Regardless of the volatility out there, cryptocurrencies nonetheless witnessed a robust yr, with some currencies posting positive aspects of no less than 5,000 per cent in market worth, bringing large income to traders.
The whole market capitalisation was round US$771 billion at first of the yr and it is now at $2.2 trillion.
Some common cash similar to Bitcoin and Ethereum have climbed by 35-45 per cent in worth in 2021. Nevertheless, earlier than reaching the present secure 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 firms 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 Might.
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 brought on 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 value broke over the $69,000 degree, then Bitcoin recorded the longest shedding streak. Bitcoin is step by step climbing again within the final days of 2021, buying and selling at round $51,000.
The cryptocurrency market additionally obtained a variety of optimistic information, together with the most important US cryptocurrency trade Coinbase efficiently itemizing on Nasdaq, partly affirming the place of cryptocurrencies within the funding market.
Some cash have posted extraordinary positive aspects this yr, up over 5,000 per cent similar 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.
Subsequently, it isn’t exaggerating to say crypto is essentially the most spectacular funding channel of the yr.
Phan Dũng Khánh, Head of Funding Advisory at Maybank Kim Eng, mentioned that there are two common funding channels in 2021, that are securities and digital belongings.
“Digital belongings, together with cryptocurrencies, are a buying and selling channel that has not been recognised by legislation, however the variety of traders taking part out there continues to be very massive,” Khanh mentioned.
A report from Chainalysis, a blockchain analytics agency, confirmed that Vietnam ranks fourth among the many largest international locations when it comes to income 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 earth. Beforehand, based on a survey by Finder and Statista, Việetnam 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 Might.
“Due to social distancing, I am unable to go to work and have a variety of free time, so I regarded for funding channels and the crypto market is sort of common 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 numerous digital cash, together with Bitcoin.
“Although the crypto market was extremely risky 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 in regards to the downtrend of cryptocurrencies subsequent yr, many consultants nonetheless imagine that the market will proceed to be energetic.
Because the crypto market may be very dangerous, with many pretend crypto exchanges in Việt Nam, traders ought to study and perceive the belongings they’ll put money into. In the meantime, selecting the correct time to affix the market can be a vital issue.