Increased Demand Of Cryptocurrency In December 2021
According to the digital currency manager, people were investing in cryptocurrency funds in the last week of 2021. Total investment of the last 3 weeks was $260 million, and by mid-December, the trend slowed down. Still, cryptocurrency showed a strong inflow into digital assets investment products.
In 2020 when bitcoin launched, people were not so familiar with crypto, but now, as of 2021, inflow hit $9.3 billion, which is a hike of 36%. In 2021 total assets management was $62.5 billion, and in 2019, $2.8 billion. Growth has been published in fund inflows represents a maturing industry.
In 2021 Ethereum‘s inflow went to $1.3 billion, which is double from the last year and in 2020, $920 million. Similarly, the bitcoin growth rate increased to 16% ($6.3billion), which is a low growth rate compared to other digital assets.
On November 10, bitcoin lost its value; it went down from $69000 to $46.186.55. Ether, the currency for the ethereum blockchain, went down to nearly 20% from its November peak.
Across many on-chain measures, there is a general lack of activity in bitcoin, bitcoin continues to migrate to inactive wallets, and investors receive profit, says blockchain data provider Glass node.
Glass node added that his expectation increased with the balanced bull and bear signal at hand. In 2021 coin invested in products increased from 9 to 15 percent, and in 2020, 24 products were launched. In 2021, 37 investment products were launched, which is a sign of the demand and popularity of digital assets.
The two largest digital assets, manager grayscale and coin share asset under management, were $43.23 billion and $ 4.2 billion.
Cryptocurrency is a kind of virtual money that depends on market demand. Despite real cash liquid in nature, crypto is illiquid. People sell crypto on a virtual platform like wazir x and coin and receive money in return. There’s no need for government permission in that. Bitcoin, litecoin, dogecoin is a few examples of cryptocurrencies. The market value of cryptocurrency is fixed worldwide, like the value may increase or decrease for every part of the world. It works on blockchain technology. If everyone is using bitcoin, we’re forming a chain in my friend’s group, and every user is interlinked.