Bitcoin has become a more and more popular way of investment in the last some years. Over the past years, this currency has increased in price and caused a lot of buzz amongst investors and even economists alike. Even in 2021, Bitcoin was expected to make huge waves as an alternative to traditional investments. Even investors are now turning to Bitcoin because of its decentralized nature and growth potential, letting this currency potentially provide investors with much better returns and a hedge against market volatility. For more details and the latest news updates on bitcoin and other currencies, visit BITIQ ORG
Bitcoin Price Action
Bitcoin traded over $23,200 on Friday afternoon, just after setting the week’s low of over $22,874 during the day. BTC bounced at $24,600 overnight on Thursday after suddenly recovering from the low of Wednesday at $23,623. Before Wednesday’s dip, bitcoin spent four days above $24,000 and punched up to the $25,000 level many times – topping the August high for trading at the best levels from June 13. The world’s biggest cryptocurrency is over 40%, following its FTX collapse in November.
Ethereum also traded over $1,600 on Friday afternoon, dropping to $1,577 during the day. It is the first time Ethereum fell under $1,600 this week; this briefly broke over $1,700 in 4 of their days. The second largest crypto is around 34% date. Recently, the news of the American vehicle maker Tesla purchasing $1.5 billion Bitcoin has also sent shockwaves worldwide. An unexpected move by Elon Musk is lauded by many as a savvy business decision and has triggered enormous interest in Bitcoin from this corporate world.
Top reasons for bitcoin’s rise in current years
The buying power of such large companies has led to a renewed interest in Bitcoin as an investment opportunity. As the popularity of Bitcoin rises, more investors have been eyeing it as an alternative to traditional investments like stocks and bonds. This could mean more capital flows into the crypto-currency as investors continue looking for alternatives in market volatility.
Another reason for Bitcoin’s potential rise in popularity this year is its surging value. With the price of one Bitcoin hitting an all-time high in January 2021, the digital asset’s performance is creating positive sentiment in the market. In addition to Tesla’s purchase, other big names such as JP Morgan and PayPal have also begun offering Bitcoin services to their customers, showing confidence in the digital asset and encouraging more investment in the space.
However, Bitcoin has also come under criticism from some investors and financial analysts who fear its volatility could lead to losses for those investing in it. In addition, its lack of liquidity and other inherent risks also means it is a risky asset and should be viewed as such. Bitcoin has reached a vast high of over $65,000 in 2021, but the value dropped significantly after that.
So, we can conclude that Bitcoin is a high-risk investment option because of the lack of regulation, volatility, and vulnerability to fraud and hacking. Investors must carefully evaluate potential benefits and risks before investing in Bitcoin and any other cryptocurrency out there. It’s always a good idea to stay updated with some of the latest news and developments happening in the world of cryptocurrency to make a better and more informed investment choice. You may also follow some of the reputable news sources where you can find some of the latest news and insights on Bitcoin and various other cryptocurrencies that you are interested in investing in.
Overall, while investing in Bitcoin has a potential upside, investors must take a measured approach. As with any investment, careful research and due diligence should be conducted before deciding to put money into the crypto-currency. Additionally, it is essential to remain vigilant and up-to-date on news and developments in the crypto space to remain informed of changes and trends in the market. In conclusion, with the rise of Bitcoin, it is essential to remember that it is still an emerging technology, and thus investors should be cautious.