To better understand the future of bitcoin (BTC), the most important cryptocurrency, it may be relevant to respect its past difficulties as its glory hours. Bitcoin has fallen more than 50% in the last six months, but cryptocurrency holders are used to volatility. In this article, we will examine the previous one bombs and BTC crashes to see what the future of bitcoin might look like. In the light of this article, it will become clear that, despite the intrinsic qualities of cryptocurrencies and bitcoin, it remains a highly speculative digital asset. That said, there may be advantages in retaining such assets in the future.
To better understand bitcoin (BTC) news, let’s look back at its rise and crash soon
Prior to 2017, bitcoin was trading below $ 1,000. But on New Year’s Day 2017, the cryptocurrency broke above the $ 1,000 level and by the end of the year had a shot of up to about $ 20,000. seo boom it was inspired by a wave of interest, first in Japan, then in South Korea.
A boom bitcoin due to interest from small investors
Retail investors started betting on Bitcoin, attracted by prime-time TV commercials and billboards that offer high returns. After Japan approved trading on 11 crypto exchanges in April 2017, the country accounted for about 40% of daily trading activity worldwide.
The first crash bitcoin due to whale liquidations for profit
But an accident soon followed. In early 2018, Bitcoin “whales,” the largest holders of the cryptocurrency, began withdrawing cash to take advantage of high prices. The mood then came when Japanese exchange Coincheck hacked, losing $ 530 million worth of XEM, another popular cryptocurrency. While no BTC was stolen, the hack confused retail investors, who were worried about the security of holding digital currencies.
The first Bitcoin winter
Between March 2018 and May 2019, Bitcoin traded below $ 10,000 as critics and regulators expressed doubts about its future. But in June, BTC received a boost from an unexpected source: Facebook. The world’s largest social media company has unveiled its plans for Libra, its own digital currency.
The most boom bitcoin during the Covid19 pandemic
After the initial shock of the pandemic, Bitcoin began to withdraw. Especially after PayPal announced that it would start allowing users to hold cryptocurrencies. Locked in and with government stimulus checks to spend, retail investors have started betting on the rise of bitcoin. In six months, the cryptocurrency went from less than $ 12,000 to more than $ 63,000.
The final fall
This victory day of bitcoin was short-lived. China banned the mining of cryptocurrencies. The United States and Europe then again raised the regulatory outlook. Bitcoin fell to just under $ 30,000 in late July 2021. While bitcoin remained a way to escape inflation and FIAT currencies, in October 2021 the cryptocurrency became completely mainstream with the launch of an exchange traded fund. This allowed investors to gain exposure to their ups and downs without directly holding Bitcoin. It was the end of a currency that escaped market fluctuations for some people, while for others it was a declaration of less volatility. Eventually, the Bitcoin exchange-traded fund was in Achilles ’heels. First of all, he nurtured it like never before. Bitcoin an reached a record high of almost $ 69,000… But as a mainstream asset, its success is much closer to the general market sentiment. In early December 2021, the US economy feared rising inflation and future interest rate rises due to the fall in the price of Bitcoin and over the following months it fell along with the downturn. In June 2022, bitcoin had its worst week since 2020.
What happens next? What we draw in conclusion from this history of bitcoin is that it is extremely volatile. In fact, cryptocurrencies are probably the most speculative assets today. It is a great shame, for a currency with so many qualities. Finally, the bombs All bitcoin precedents were driven by small investors chasing into the market. They did this in the hope of making a significant profit in the short term. His was crashes Later came as regulators, market stimuli, or concerns about bitcoin holders industry risk of cash out. These are trends that are likely to continue. But, we may one day see bitcoin with some stability …
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Gregory Morat
A student passionate about entrepreneurship and interested in the technologies behind cryptos! Yes, I’m sure the two are closely linked: blockchain and NFTs are revolutionizing many sectors and presenting unprecedented opportunities.
