Following a 200-week average run, Bitcoin (1) fell from a record high of $69,000 to its lowest point since November 2021, a 70% drop, and is now trading for $21,501.
Better recovery from the $17,700 mark reached by the Bitcoin BTC market in June. For many Bitcoin investors, this has been devastating.
Some analysts are predicting Bitcoin to catch up to a downfall of $3,000. If it can fall 70% once, then it can fall 70% again. "Bitcoin is dead" and "Bitcoin Dead" have been trending on Google searches (2) and have spiked alongside top critics claiming the top cryptocurrency might not recover.
The last two weeks have been very brutal for Bitcoin as its price dropped below $18,000. If you observe the market, you will find the crypto market crash headlining. Many analyses point to the end of Bitcoin, with warnings that it will be worse than the previous Bitcoin crash.
Although the crash is nothing new for Bitcoin consumers, it is undoubtedly major news for Bitcoin's rivals. Since Bitcoin is still the most popular cryptocurrency even in its decline, the phrase "Bitcoin death" has been used.
Several factors to consider include inflation, shifting US monetary policy (3), and geopolitical crises, all of which continue to limit extra short-term volatility in the crypto market. rumored rumblings about a potential recession may occur.
Although the crypto market is moving similar to the stock market recently, which makes it even more affected by the increasing global economic factors.
What is affecting Bitcoin’s market fall?
The Federal Reserve (4) has increased interest rates by 75 basis points, the greatest move against inflation in the last three decades. Inflation is rising sharply despite numerous measures intended to control it, and the ongoing conflict in Ukraine (5) continues to contribute to the market's turbulence.
By the beginning of the year, it nearly hit $48,000 and by the end of the year, it lost 70% of its value. Bitcoin’s price has been fluctuating between $17,000 and $22,000 this week.
- June 16: $20,516
- May 23: & 28,646
- March 23: $46,995
Though Bitcoin and Ethereum (6) are both currencies, both have equal ups and downs. Many analysts are also claiming that Bitcoin will exceed $100,000 someday. The volatile value of these currencies is a major draw for many.
The original cryptocurrency once set a record high loss as it plunged over $30,000, abruptly losing half of its value. Crypto investors, particularly Bitcoin investors, are constantly on the lookout for a rise in the volatile value.
The history of this volatile currency does not guarantee a long-term reversal. Bitcoin’s value is just likely to fall and might climb high in the same way at the same pace. The future holds much more volatility to be seen and many claim that crypto investors should adapt to the volatile nature and ups and downs in the market value.
What should investors understand?
If you are a crypto investor, get used to the volatile nature. This is why many experts advise keeping cryptocurrency investments to less than 5% of your overall portfolio.
If there is a price down on crypto now, it does not mean the price won’t go up. The way it falls is in the same way it goes up. On the other hand, just because the price is high does not mean you should buy more cryptos.
Always make sure your investments fulfill your financial bases like retirement solutions to emergency savings before jumping onto speculative assets like cryptocurrency.
Bitcoin and its latest fall are not new for bitcoin investors. Investors have experienced major volatility and frequent volatility in the currency for years. Investors should keep their current investments.
If the price is fluctuating, the best thing you can do is ignore it, let the market fluctuate, and wait for the currency to regain its heights again. Investing in crypto is a long-term investment.
A short history
Although some critics claim the current condition of bitcoin to be average in 2018, its price drop certainly does not render it dead. The pandemic (7) sure had a certain contribution to this list as it was the worst-case scenario for every currency.
If you buy 20% higher than the bottom $3,948, which puts you at around $4,737, and sell it for $10,000 less than the recent high of $69,000, you will have a clear return of 1,145% in the next 20 months of your investments.
Or, if you bought at $4,737 and never sold because you thought it might one day reach $100k, they are still profitable at 341%. The condition compared to other assets is way better and more adjustable.
Also, it is better than ExxonMobil before its selloff. For the time being, this means the ups and downs of Bitcoin are clear. These previous experiences and decisions have led hard Bitcoin investors not to be disappointed in investing in the always high and volatile bitcoin.
Not Dead Yet!
The keyword search for Bitcoin reached popularity with a 12-month high of 100. Notably, it also experienced a 35% increase from the past week when the score was 74.
The Federal Reserve’s dramatic policy has contributed in large to this downfall. The subsequent domino effect (8) and the disintegration of the Terra network (9) also contributed to the market value being turned down.
The big runners, such as Celsius (10) and Three Arrows Capital (11), are expected to fail soon, according to rumors.
From the beginning, there were many crashes that people almost thought were the end of Bitcoin. Many of them are waiting for Bitcoin to end, such as Bill Gates (12) himself, who once stood up against Bitcoin.
Although these market drops also have many other political, economic, and social reasons, they are being pulled down by the ongoing crisis around the world.
even though this was the year's fifteenth death, according to the obituaries. However, Bitcoin's claim of the $20,000 threshold was evidence of its expansion and slow but steady recovery.
Even if other cryptocurrencies are also making progress, Bitcoin's gain was 6 percent better over the preceding 24 hours.
