We made a strong prediction of BTT to reach $1 by 2022 in February of this year. However, things have changed and we have noticed a volatility in the market and its impact on BitTorrent Price.The BitTorrent token is a digital asset connected to the popular filesharing company BitTorrent. This digital asset was built on the Tron Foundation blockchain and currently sits among the top 50 cryptocurrencies on the Coinmarketcap website.The BitTorrent token was created in 2019 to act as a reward for users of the BitTorrent network. Currently, this network is the most significant decentralized filesharing protocol in the world.At the time of its launch, a wide range of price prediction analyses was done on the token. Most of these articles predicted that by 2021 the BitTorrent coin price would hit $1. However, BTT is yet to attain that value; instead, the token’s value dropped from its all-time high this year.
What factors resulted in this price drop? Will the token recover to reach its predicted price of $1? What are the long-term prospects of the BitTorrent coin? The answers to these questions and many others will be discussed in this article. Before we get into these questions, let us quickly review the BitTorrent token.
What Is BitTorrent (BTT) ?
As stated above, the BTT token is attached to the popular filesharing company BitTorrent. This company was founded in 2001 by Bram Cohen, a top software programmer in the United States.As a company, BitTorrent operates a decentralized peer-to-peer protocol that allows users to upload and download files on their network. BitTorrent offers its users top-notch quality service and has a worldwide appeal compared to other filesharing companies available today. Currently, the services of this company are used by over 100 million people worldwide.BitTorrent Inc was sold to Justin Sun, the Tron Foundation (TRX) cryptocurrency project founder, in July 2018. Justin Sun acquired BitTorrent Inc for $127 million. Shortly after purchasing the company, Tron held an Initial Coin Offering for the project and initially raised $7.2 million from selling 60 million BTT tokens. BitTorrent Inc was sold to Justin Sun, the Tron Foundation (TRX) cryptocurrency project founder, in July 2018. Justin Sun acquired BitTorrent Inc for $127 million. Shortly after purchasing the company, Tron held an Initial Coin Offering for the project and initially raised $7.2 million from selling 60 million BTT tokens.
BTT tokens were created to reward users who share and store files on the BitTorrent network. Additionally, the tokens were created to unify the BitTorrent network with the Tron ecosystem. Currently, users can buy this token on exchanges like Binance, Huobi Global, CoinTiger, OKEx, and FTX.At the time of its launch on January 1, 2019, the coin price was $0.00012. however, with the increase in the purchase of the token, the coin price increased gradually increased reaching a new coin price of $0.0018 by May 28, 2019.Following this price increase, BTT suffered a significant drop in value, and bittorrent price dropped from its 2019 all-time high to 0.00031 by December 10, 2020.BitTorrent saw a remarkable increase in price value with the new year’s coming as coin price hit its all-time high at $0.01426 by April 5, 2021. However, there has been a significant drop in price value for this token, which brings us to the first question. What are possible reasons for this drop in price value?
So Why The BitTorrent Price Is Falling In 2021?
Several reasons can be attributed to the drop in the price of BTT, and these reasons are have resulted in a significant drop in the price of this token. Let us review two key reasons for the drop in BTT token price.
Selloff by Buyers
Due to its 400% rise during the early months of 2021, many early hodlers of the BTT token sold off to take profits. This is particularly evident when you consider that digital assets like Bitcoin and Ethereum rallied during this period.At the time of the selloff by buyers, the price of Bitcoin was in the $60,000 price range, while Ethereum price was around the $2500 price range. An initial selloff by buyers resulted in a major selloff of BTT tokens by holders to make profits off their tokens. However, following the selloff, there has been a drop in top crypto asset Bitcoin price.
Drop-in Bitcoin Price
Following the initial selloff of the BTT token by holders of the coin, another factor that has greatly affected the token’s value is the drop-in Bitcoin price. This factor has resulted in a drop in value for all altcoins in the crypto market.
The drop in Bitcoin price can be attributed to a tweet from tech Billionaire Elon Musk. On May 12, 2021, Musk tweeted that Tesla will no longer accept Bitcoin as a payment method for their electric cars due to environmental concerns. This tweet saw a massive drop in Bitcoin price, with coin price dropping to $30,000 by May 19, 2021.Following this huge drop in Bitcoin price, the coin price of all other altcoins suffered a massive price drop. The BTT token was not left out as its value dropped significantly during this period.As of May 12, 2021, the BTT token price was $0.0069, but with the drop in Bitcoin price, the BTT token price dropped to $0.0025. After this price drop, Bitcoin saw a small increase in price and moved up to the $40,000 range. This move saw many other altcoins like BTT make small gains.The Bitcoin price dropped further after the ban on Bitcoin mining in China. As a result, there was a price drop for other altcoins like BTT. However, Bitcoin seems to have recovered from this price drop. As of June 28, 2021, the Bitcoin price is $34,462, while the price of the BTT token is $0.0025. This brings us to the second question, Will the BTT token recover to reach its predicted price of $1 in 2021?
What are the long-term prospects of the BitTorrent coin?
Like many other solid crypto projects, the prospects for this BitTorrent token are encouraging. The token is associated with a solid project, which has a massive following with over 100 million active users. As a result, we expect to see an increase in its value in the long term.
We will refrain from making a specific prediction about the coin’s price long term. However, we expect to see an increase in coin price with the next bull run in the crypto market.
