Will Bitcoin recover?
That is a question nobody knows the answer to. I think anyone who claims otherwise is really deceiving themselves. The problem with predicting what may happen with the movement of bitcoin is its short history which is insufficient data to make an informed prediction. Unlike the share market which has a long history. Financial experts can look at what has happened in the share market and tell you how quickly or slowly the market has recovered after a crash. When we concern ourselves with Bitcoin we are heading into unknown territory.
There are some financial analysts who are game enough to make a prediction on which direction bitcoin will go. Some are even predicting that the price of bitcoin will reach 75,000-100,000 by the end of 2022. Whether this is pie in the sky stuff we will find out; it all depends on who you listen to. As always, look at a person’s credentials before considering taking anyone’s advice. How well do they know the world of cryptocurrency?
Bitcoin has lost two thirds of its value since it reached its record high of $68,000 US last November. Ethereum is worth just a quarter of its record high of $4700 US.
Investors have been looking for alternatives to cryptocurrency in favor of less volatile investments.
Will bitcoin recover?
One expert says it could take a few months or a few years to recover. Another expert says he expects short term volatility and long term growth.
One reason for the downward spiral of cryptocurrencies has been the involvement of institutions which are sensitive to the availability of capital. This has been the major factor in the correlation between Bitcoin and equities.
Cryptocurrencies have not been helped by bad publicity which have had the same effect as bad publicity has on the share market.
Another expert who showed graphs explained that Bitcoin doubled in price the following year after it halved in price and says recovery is not expected before 2023. He says that he expected the next peak in Bitcoin to be after 2024. The next peak is expected to be in November/December 2025 if previous high/low/high patterns continue.
Bitcoin may have a short history but patterns are still emerging which investors can consider when deciding whether to invest in Bitcoin. The important thing to remember is that you should use only your discretionary spending money for purchasing cryptocurrency.
Another thing you should keep in mind is that when there is an opportunity to make a capital gain whether that be from cryptocurrency, gold, or the share market then there is also the chance of a capital loss.
ABOUT THIS ARTICLE
The article is of the writer’s own opinion and experience and may not necessarily be applicable to your own circumstances. If you require qualified financial advice see your financial advisor or bank manager. Feel free to share this article. You may use the article as content for your ebook or website. Check out my other articles on www.robertastewart.com
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