How Long Will the Bitcoin Rise Last?
Bitcoin is a volatile financial instrument with a clear record of massive booms and busts like other cryptocurrencies. However, it has demonstrated an impeccable performance that no other cryptocurrency has can match up to date. Bitcoin climbed by 700% in 12 months, setting the price of a single Bitcoin to an all-time high of $63,000. However, it has also faced tough times in recent months, almost cutting its price by half.
Why Bitcoin Is Rising
Bitcoin’s value mainly depends on public perception, which refers to the news items doing rounds on TV, radio, websites, blogs, and other channels. The media sets the public perception towards many things, including Bitcoin. Some of the most significant gains in Bitcoin price have resulted from endorsements by industry leaders and mainstream institutions.
For instance, Bitcoin saw a meteoric rise in 2020 and early 2021 when big-tech companies like Tesla, MasterCard, and BNY Mellon announced they had adopted it. Several other influential companies, including PayPal and Fidelity, followed suit, further bringing Bitcoin closer to the public.
Bitcoin is a decentralized medium of exchange and investment instrument, widely accepted across the world today. That also means it is not subject to government or political influence, allowing people to conveniently send and receive money worldwide. The convenience of using Bitcoin to make payments or acquire assets contributes to a positive public perception.
Today, leading crypto investment companies such as Immediate Edge have even integrated automated trading software, making it easier for beginner investors to acquire and trade Bitcoin alongside other assets. Those developments clearly show the increasing regulatory and institutional acceptance of Bitcoin, thereby keeping its price high.
Despite the growing demand, Bitcoin’s supply limit stands at 21 million only, with more than 18 million in circulation. The limited supply helps keep Bitcoin scarce amidst the growing demand, allowing it to keep rising.
How Long Will It Last?
Bitcoin has recently begun on a downward trend, plunging 10% and 3% in June and July. Its price has now fallen by almost half from the peak of $63,745 in April. For instance, some of the negative publicity cases include the announcement by Tesla that they would not accept cryptocurrency payments in May. Starling Bank’s announced a ban on crypto payments in June over concerns about criminal activity. Also, China announced a crackdown on cryptocurrencies.
Investment experts consider cryptocurrency price swings as part of the game, which every player must be ready to face in the industry. Therefore, it would not be a good idea to sell your Bitcoins too fast if the prices take a sudden downturn like the one currently witnessed. If you are a beginner investor, it would be advisable to keep your positions small and make adjustments based on the market. That would cushion you from the harsh impacts of volatility.
Unlike seasoned investors, regular traders do not usually have the luxury to wait out the impact of volatility. It would be best to have a more reliable financial plan, such as a diversified portfolio with low-cost investments that can deliver good returns. Bitcoin offers you the best opportunity to diversify your investment with greater flexibility, convenience, and safety. You can invest in Bitcoin in the short term or long term, based on your investment capital and goals.
Some analysts predict Bitcoin could be the new gold, expecting its price to hit $318,000 by the end of 2022. However, Bitcoin and gold have a pretty complicated relationship. Unlike gold, Bitcoin is still in its early stages of adoption. That means it has more room for growth in 2021 and beyond. As such, Bitcoin will undoubtedly attract small, medium, and large investors seeking to diversify their investments for high returns.
(Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)