Bitcoin investors have been suffering monumental losses in the past couple of days. In most people’s minds, all they can wonder is, “Will the value of bitcoin rise after this drastic fall?” The team of bitcoin-circuit.app are analizing the Bitcoin ups and downs, and the first question is what was behind the Bitcoin dip?
A series of events contributed to bitcoin’s price going off a cliff at such a fast rate. Elon Musk, for example, the Space X and Tesla’s CEO, announced that Tesla put a suspension on the purchasing of vehicles using Bitcoin. He reasoned that bitcoin mining led to a surge in fossil fuels, especially coal, which isn’t friendly to dear old mother nature. Elon’s tweet alone can make bitcoin prices either surge or fall as quickly as possible. He’s got a lot of influence on how the crypto world goes.
The other contributing factor to bitcoin’s drop is the fact that China banned crypto. The country announced that financial institutions and payment firms were not allowed to provide any crypto-related services. Investors were also sternly warned against any speculative trading. Any cryptocurrency service, even trading alone, is now a punishable crime in China. In a collective statement, banking bodies in China claimed that speculative crypto trading has trespassed on the safety people have in property ownership. They also believed that crypto trading has brought about a disruption in the financial order people are used to.
Will Bitcoin prices get any better?
It is impossible to predict what’s going to happen at this moment. The thing that can bring the bitcoin price up is if its mining is friendlier to the environment.
The ban made in China will need a global intervention. Regulation can be made across the globe to impact the decentralization of crypto, which will, in turn, attract those that want to invest and frequent traders also.
Bitcoin is very volatile, and so it can gain momentum in just a few weeks or even months. However, keep in mind that putting your money in bitcoin is more of a gamble since the price can rapidly go up and fall too fast. Do not invest all of your savings in crypto.
Is it advisable to invest in bitcoin?
Some people have learned about bitcoin since its invention and decided to put some money into it. They have made such a huge profit so far if they are still in the trade. Satoshi Nakamoto, bitcoin’s creator, made a bank from it; around $40bn. Various investors have also profited in millions just for making their investments at the right time.
Many small investors have, however, lost most of their investments following the recent dip. Most people got into bitcoin since it was heavily hyped all over the internet without thoroughly studying the ups and downs involved with the crypto world. They invested with the idea that they’d be missing out on the opportunity in case it made their peers rich.
Has the bubble Bitcoin created burst?
Since bitcoin got launched over a decade ago, it has been a part of the bull market. In 11 years, the coin went up to $20,000. When it reached that point, it only took three weeks to double its value. The following 12 months after that, bitcoin rose to $63,000. That’s a 700% soar.
However, if you gain interest in investing, know that the market is heavily dependent on the wild predictions made by crypto fans online. The good thing about bitcoin is that big brands such as Visa and Mastercard adopted it. This alone is a significant contribution to the rise of its price. Its adaptation brings about excellent price stability, putting a limit to those sharp price swings.
According to Kryptoszene.de, the money flooding into the investment funds sector could contribute to bitcoin’s surge. In the $4.2bn made in the first quarter of the year, investors put 79% of it into bitcoin.
Market analysts believe bitcoin is the future of investment. Instead of people storing their assets in financial institutions, they’re instead going the crypto way. This forces companies to adopt crypto, which will be another contribution to its price rising again. The more institutional investors adopt crypto for their capital gains, the calmer the price movements will get.
Bitcoin has been hyped as an alternative to gold for quite some time. The reasoning being its value has gone up so significantly, and it has a limited number of coins. If it can prove itself as a hedge against inflation, more people are going to adopt it.
Various crypto-market experts speculate that bitcoin might hit up to $100,000 or even a much higher value by the end of 2021. However, its volatility makes it impossible for investors to predict if it will take an upward or downward direction. It certainly is going to be a wild ride for crypto investors. Remember, only risk what you can afford to lose. Get into it with the mentality that money invested in bitcoin is as good as loss, but it makes you a fortune, then it’s money that’s been spent well.