xrp cryptocurrency price

Bitcoin Is Rising From Its Slumber. Is Now A Good Time To Buy?

Bitcoin Is Rising From Its Slumber. Is Now A Good Time To Buy?
Written by publisher team

The price of Bitcoin has fallen since early November 2021, when it reached an all-time high of $69,000 (AU$94,750). It has since fallen to $40,664 (AU$55,839) on Jan 9 (a low that almost fell again on Jan 11). Since the eleventh, however, its price has gone up. Today, at the time of writing, on January 13, it was priced at $43,797 (AU$60,132).

Bitcoin price chart for 1 month. Photo: CoinDesk

So: Will Bitcoin continue to stabilize (or increase) in price? Will bitcoin drop even further (say, back to $10,000 per bitcoin, as one prominent investor bleakly predicted last year)? Or is this all fun and games in a notoriously volatile market?

First, let’s take a look at why it’s so low. First of all, it should be noted that crypto has a natural cycle as people tend to sell soon after assets hit record highs (which Bitcoin did in November).

Even before this latest dip really started to fall, the market wasn’t going fantastically. Forbes It was reported on December 3, 2021, that the prices of Bitcoin and other cryptocurrencies have fallen sharply, wiping out about $300 billion from the aggregate crypto market in just two days.

Bitcoin price chart for a year. Photo: CoinDesk

Bitcoin trading was rising to $69,000 just weeks before that. So it’s down about 30% at that moment, and in the following weeks to January 11, it’s lost nearly half of its value.

Bitcoin’s drop was followed by serious drops in other coins, including Ethereum, Binance’s BNB, Solana, Cardano, and Ripple’s XRP.

But why did bitcoin itself drop?

The decline in the price of bitcoin in December 2021 came along with some significant declines in the stock market, as well as a warning given by wig investor Louis Navlier that a tapering of the Federal Reserve could cause the bitcoin and cryptocurrency bubble to burst.

Navellier said, according to an article by interested in trade in December.

“The more the Fed tapers, the more volatility we should see in both stocks and bonds — and yes, bitcoin too.”

The Fed is now beginning to “cut back” its financial strength, after a sharp rise in inflation and a recovery in the labor market.

While some believe there is still a lot of money left out, even though the Fed is starting to taper, and doubt that the Fed will allow the markets to crash away, others are making much worse predictions.

Navellier warned, for example, that Bitcoin could drop to $10,000 per Bitcoin, a sharp 80% drop from last month’s all-time high of about $70,000 (Bitcoin was not as low as $10,000). Since September 2020).

“I would consider a dip below $46,000 (the 200-day moving average) to be a yellow flag and a dip below the spring low of $28,500 to be a completed massive double top indicating a drop below $10,000, which coincides by the way,” he wrote. Navellier, according to interested in trade.

Forbes Reports: “Bitcoin price has recorded similar declines in the past, although bullish bitcoin and crypto investors remain confident that the price of bitcoin will rise significantly in the coming years.”

interested in trade Reports: “While Navellier is making a dramatic prediction, Bitcoin has endured a few 80% plunges before, the last of which began in December 2017 and ran for most of 2018. There were plenty of reasons, including the government’s refusal to allow the Bitcoin ETF to trade, concerns about hacks, and warnings from prominent investors such as Warren Buffett.”

the sun I reported in December that the rapid decline in the price of bitcoin came after China intensified its clampdown on bitcoin mining, helping to cause the most recent crash earlier this year.

“The omicron variant has also led to risk aversion due to concerns about what it could mean for the reopening of the global economy in the coming months,” the sun I also mentioned.

Bitcoin’s crash also comes a few weeks after Twitter’s chief financial officer, Ned Segal, said he wasn’t shameful about investing companies’ Twitter funds in cryptocurrency at this time.

The Wall Street Journal It was reported in November that Seagal said in an interview, “We [would] We have to change our investment policy and choose to own more volatile assets,” he said, adding that Twitter prefers to keep less volatile assets (such as securities) on its balance sheet.

in addition to, The Wall Street Journal It stated that Twitter is “assembling a team called Twitter Crypto to research ways to help app creators earn money or accept cryptocurrencies like Bitcoin for payment, and other ways to use blockchain technology.”

The Wall Street Journal It also cited a handful of other technology companies that revealed it Act You own crypto assets, such as Tesla and Square.

Watch Elon Musk and Mark Cuban discuss potential real-world applications of the ‘Dogecoin’ meme coin in the video below

On that note: Although there is a long way to go before this Wild West is tamed, certain aspects of the crypto world have recently achieved some milestones in terms of legitimacy, frustrating many (see Jordan Belfort’s recent comments) with the hype about shitcoins giving Notoriety for the industry, and calls for more regulation to push the space forward.

With this in mind, if you have faith that Bitcoin will bounce back, and you are a long-term believer, this might really be a good time to buy (as long as you are prepared for volatility and worst-case scenarios and can afford to lose everything you put in).

However, if you are a short-term investor, you are heading into the unknown without any shred of the compass (i.e. gambling). This is because there is no way to know if bitcoin will fall further or bounce back in the coming days and weeks.

Some experts are very bullish this week, as Bitcoin (apparently) is starting to recover.

One – Hongfang, CEO of crypto exchange – told CNBC Recently, despite the uncertainty currently surrounding Bitcoin: “I still think the $100k price point is reasonable.”

Even among crypto-believers, there is a lot of disagreement about possible future winners. Some people believe that Bitcoin and Ethereum will always be the benchmarks and stores of wealth (more Bitcoin than Ethereum), even if the new tokens outperform them in certain ways (such as speed and environmental benefits). Meanwhile, others are looking further afield at (less-proven) niches like Nano, Solana, and Cardano.

Disclaimer: This article is for informational purposes only. This is not financial advice. Never invest more money than you can afford to lose in any cryptocurrency.

About the author

publisher team