Cryptocurrency is no doubt is a well-known digital technology in the world today. The wave began with the inception of the Bitcoin cryptocurrency, the first innovation coined by a mysterious figure Satoshi Nakamoto. Since then there has been much craze among the people around the world. The first-ever purchase made by Bitcoin were two Papa John’s pizza at $10K purchased by a man from Florida.
Many people have become millionaires with Bitcoin. These include Barry Silbert, Brian Armstrong, Winklevoss Twins, Sam Bankman-Fried, and Michael Saylor. Despite being a volatile asset, Bitcoin has been accepted as a payment mode by big firms including Goldman Sachs, JPMorgan, Starbucks, BMW, Coca-Cola, Wikipedia, Twitch, Amazon, Overstock, Paypal, and AT&T.
In the last year, many of the top digital currencies including Bitcoin have been through a volatile stage in the market. In 2021, the price of the dominant crypto coin BTC has plummeted low in November and early December. At present, the market value of the latter crypto coin has gone below $50K. This has raised anxiety among the investors. They are waiting for the day when BTC will going to touch that mark and will break the barriers.
When the Biden administration took an initiative in boosting the acceptance of Bitcoin in the country, it resulted in a price upswing of the latter crypto coin. Currently, it is observing the possibilities created by the growth of digital currencies. Investors who were optimistic about the rise of Bitcoin in the coming decades praised this report. However, the order also prompted the selling of BTC holdings for some traders.
Bitcoin cryptocurrency: From higher to low
Bitcoin reached its all-time high price at US$65K but fall to US$45K. Now, this seems equivalent to crypto losing half of its value. On 2nd March 2022, the crypto king experienced a price surge above US$45,000 moving forward to US$47K. This upswing movement remained throughout the week specifying a 15% rise within a week.
In the last five months, the cryptocurrency has lost beyond 40%, because of volatility. The dominant crypto might be on the rise but is also in its falling state. The cryptocurrency that led to the full growth of the crypto market is now on its downside. This has left investors in a shocking state. However, some crypto experts are optimistic about Bitcoin cryptocurrency touching the target of US$200K by 2022 end.
What made Bitcoin fall?
According to some experts, the current market circumstances of Bitcoin must not discourage investors from doing investment in it. Rather, they must be aware of the present changes in the market movements. Coming to the main reason behind the price downfall of Bitcoin was majorly affected by national and institutional regulations. Very soon investors will come to know that the prices of cryptocurrencies have a co-relation with regular assets.
Now since Bitcoin cryptocurrency has risen to a mature level in being accepted on a wider note. With that being said, the price of BTC becomes co-related with regular assets like stocks. The rise in this co-relation has an impact on the price in the traditional markets. This also affects the decline in the price of Bitcoin at a greater level. Keeping an eye on the changes in the price of the cryptocurrency market will let investors in assessing the financial markets from a broader aspect.
Will there be another bear market phase for Bitcoin?
Will Bitcoin cryptocurrency go to another bearish trend is the question that strikes investors’ minds. The answer to this question is hypothetical. And if it happens to be true, then it must not foil your plan of crypto investment. And this is what has been guided by crypto experts to always spend a minimum amount in doing cryptocurrency investment. The bearish market trend will result in an adverse effect on the crypto market, but the investors need to look for the security of their financial bases, before going for an investment strategy for the long term.
There is nothing new in the latest surge in the price of Bitcoin cryptocurrency, as it is a volatile asset, and can any time dive down to its lowest. So this is an alarming signal for you to be alert and proceed accordingly.
Bitcoin cryptocurrency is very popular in the crypto space. In the last year, the dominant crypto has steeped down to its lowest at $28,000 in December 2021 from its all-time high of $68K in November same year. In short, between November and December, the average price of Bitcoin fall apart to 14%. Well, rise and falls in crypto prices are common because they are prone to volatility. So always follow the advice of crypto experts i.e putting a minimum amount to avoid big losses. Log on to Cryptoknowmics to stay abreast with upcoming movements in BTC price. Also, explore other topics including Michael Van de Poppe and more others.