The world’s largest cryptocurrency, Bitcoin (BTC) is trading under a lot of pressure. Bitcoin is currently about $27,000, which will be almost $69,000 in November 2021. Since then, Bitcoin has been in a downward trend and it is now almost impossible that it will regain the high level it has seen for a long time in 2021.
So what should you do if you are now hooked on Bitcoin? If you run a mile or have high hopes that Bitcoin will return soon. With this comprehensive read, we explain why Bitcoin crashed today and what Bitcoin’s crash means for crypto investors. What’s up with bitcoin?
2022 is a turbulent year for the cryptocurrency king, Bitcoin (BTC). Bitcoin, which reached its peak in November 2021 and exceeded
$69,000, is struggling to hold even around $18,000. After the fall of FTX, Bitcoin could not withstand the market pressure and therefore did not show any real signs of recovery. Overall, the cryptocurrency market has shown to be bearish and highly volatile since the collapse of
FTX, one of the largest crypto exchanges in the world. Apart from the FTX crash, rising interest rates and rising fears also play a major role
in keeping crypto prices low. After the fatal crash in November, Bitcoin hovered between $16,000 and $18,000. BTC is down almost 80%
since it hit its peak in November 2021. It broke the $18,000 level on December 15, 2022, but this price level was short-lived and fell back below $18,000. Experts believe that Bitcoin is going to the bottom soon, however, others believe that it is more depressed. Here’s how the current BTC price has fallen since its peak last year:
Reasons for Bitcoin Crash in 2022
Bitcoin, which started 2022 at a high level, can see its level again by the end of 2022, but some bad events caused the price of BTC to change drastically, causing BTC to fall 50,000 $ to $ 15,000, in past time. year old.
The recent Bitcoin price volatility in the crypto market is due to weak economic fundamentals and the recent lack of liquidity in the crypto world. Bitcoin crashed because:
Russian-Ukrainian war.
Growing fear of inflation which means more investment and cost of living. Uncertainty due to rising interest rates in the US and UK
China is making cryptocurrency transactions illegal.
New tax system in India. Terra Luna crash.
Finally, the failure of the largest cryptocurrency exchange in the world FTX. The decrease in Bitcoin price in 2022 is due to the mentioned factors. Unexpected and negative events not only make the market more volatile and fearful, but also play a major role in disrupting the situation of the investors. What does the fall of Bitcoin mean for crypto investors?
Bitcoin, which is one of the most popular cryptocurrencies among the large lot, is also presented as an alternative to gold, which means that it can be very expensive. Similarly, Bitcoin is the only cryptocurrency that is widely accepted as a valid form of payment, as well as fiat money, but such companies are really few.
Bitcoin investors are well aware that the digital asset is volatile in nature and will change even within 24 hours. This means that even Bitcoin’s price is judged based on investor speculation as to whether it will rise or fall in the future. Investors believe that as fast as the price
of Bitcoin is going down, it can go up quickly. Market experts are quite confident that given its volatile nature, it is possible that one day
Bitcoin will regain momentum and show a rise in price at some point in the future, which may take weeks. , months or even years. Bitcoin supporters view it as a valuable investment method that helps in increasing the overall portfolio and can generate higher returns at any
time than any other form of investment. However, before investing in Bitcoin, one should know the main factors that can help them make a good financial decision.
Tips to consider before investing in Bitcoin
Don’t invest all your money. It is best to invest only 5% to 10% of your total portfolio in cryptocurrencies like Bitcoin.
Add a portion of the money you can afford to lose. Like other traditional assets, think of cryptocurrency as a long-term investment.
Understand the volatility of Bitcoin, and make the investment call. Analyze the best time to buy or sell bitcoin properly to maximize returns.
One thing is clear, Bitcoin is unstable and volatile, with a high record of �
