It’s hard to find a cryptocurrency that has more popularity than bitcoin. No matter how many more digital currencies are entering the market, the position that bitcoin holds in the crypto market is not comparable to any other digital asset. The purpose for which bitcoin was created has not been achieved yet as the digital currency is facing continuous criticism due to its inefficient method of mining.
The traders and investors who have been following the bitcoin price graph for the last few years are not really shocked by the current scenario. As 2021 has not been less than a collar coaster ride for bitcoin, the price skyrocketed to an all-time high of $64000 in the first quarter of this year and within the next two months the price faced a drastic fall, and bitcoin lost almost half of its value.
Such ups and downs are not new, when you analyze bitcoin’s price history, stability is the most difficult thing to find. Not even a single year has been recorded since its existence in which bitcoin was stable and predictable. So professional crypto players are well aware of the fact that if bitcoin can lose half of its value in just two months, it can also regain its position within a short span of time.
Is this the most appropriate time to invest in bitcoin?
Before the recent decline in bitcoin price, the crypto community was looking forward to seeing bitcoin cross $100,000 by the end of 2021. The fall in the price could be temporary considering the previous price trends of bitcoin, this might be the appropriate time to invest in bitcoin as the chances are still there that it would rise again from the ashes.
2017/2018 were the worst years as the bitcoin price fell below $4000, but within 3 years the price escalated much more than expectations. It would be wise to consider the price of bitcoin in upcoming years instead of making an investment decision based on the current price levels.
Can bitcoin fall below $30,000
Bitcoin has always been an attractive investment opportunity for investors all over the world. No one would have imagined back in 2009, that something that had almost zero value would become the most valuable digital asset in the crypto market. The struggle of bitcoin and other altcoins to dominate the financial sector is real, many nations consider bitcoin as a threat, as it decreases the demand of the native currencies.
Most crypto analysts claim that bitcoin would never regain its position, and it’s better to sell your bitcoin now before the price depreciates further. This could be true, as bitcoin is under continuous criticism and Countries all around the world are not showing a positive response towards it. It is also possible that bitcoin might fall below $30,000 within the next two to three months but there are not enough strong reasons to strongly believe this possibility.
Factors that influence bitcoin value
There are numerous factors that influence the value of bitcoin. Demand and supply mechanism is the most important factor that contributes to the surge and decline of bitcoin. The supply of bitcoin is not unlimited, according to recent research more than 18.4 million bitcoin has been mined, and less than 3 million bitcoins are left to be mined. The demand for bitcoin also affects its price, whenever any multinational company invests in bitcoin or starts to accept bitcoin as a payment method its price rises.
As there are almost 5000 active cryptocurrencies, the competition is becoming intense with every passing year. Government regulation plays an integral role in determining bitcoin price. Recently China adopted a strict stance towards bitcoin acceptance and restricted people from using it.
Tesla’s Boss “Elon Musk” has been quite a prominent figure in promoting bitcoin in early 2021, but the mastermind changed his mind after a few months and showed his interest in other cryptocurrencies because of the inefficient method of bitcoin mining. Recently, Elon Musk showed a soft corner towards bitcoin and announced that there are chances that Tesla would again accept bitcoin as a payment method if the mining process could become more energy efficient.
There has been a slight decrease recorded in the purchase of bitcoin in the last couple of weeks, but many traders and investors are not panicking and are still buying bitcoin regardless of the fact that it is going down. If you are interested in trading bitcoin, you must consider reliable trading platforms like Bitcoin Evolution.