Bitcoin has been having a tough time for the last two days. It has fallen by more than 20% during this period. But as we all know, there is nothing better than a little buying opportunity. And if you have taken advantage of this, then well and good, and if you have not, then now you have missed the dip. This is because the price of the cryptocurrency has finally climbed back up to $50,000. And I at least hope it stays that way until I get my salary and can buy more.
It’s weird that after the day I wrote that Bitcoin had crossed $58,000, it fell to $46,000. Many speculate that Elon Musk’s comment is one of the reasons for this downfall of the cryptocurrency price. And it’s not just Bitcoin; the entire market has been tumbling after this comment. Janet Yellen’s comment also resulted in a negative impact on the price of the cryptocurrency. But we should understand that Bitcoin is still 81% up in 2021, and those who have it should hold with as much conviction as possible.
While entering the cryptocurrency market, one should very well know the risks that come with it. One of which is volatility. The huge fluctuations in the price of the cryptocurrency are among the major reasons that it has still not been accepted as a proper alternative to the dollar. The recent plunging of the digital coin touching the $45,000 mark from as high as $58,000 when it seemed that $60k is coming seemed drastic, but that’s how Bitcoin is.
Officials have constantly been warning investors of the risk of investing in cryptocurrency. The UBS Global Wealth Management Chief Investment Officer Mark Haefele said that they advise their clients to proceed with caution in the crypto territory. He also thinks that with the regulatory problems that crypto is facing right now, its future is still a mystery.
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Does this mean the Bitcoin rally is over?
I certainly don’t think so, and I hope not. In the long run, it is always best that any asset that is being traded publically cools down from time to time in order to prevent a complete demise. This is the nature of any asset that they stabilize in the market at a particular price and then again push upwards. In this manner, weak investors and retailers that don’t believe in the currency are shaken off, and only the long-term investors hold, or should I say, HODL.
Instead, I think it is more of a buying opportunity, and if you have taken advantage of it, it was one of your best decisions. Reports suggest that even after having such a bearing day, Bitcoin is up, on an average of 1-1.5% in 2021. So, it’s best to look at the more comprehensive picture and not just these two days.
What are your thoughts on the huge price swing of cryptocurrency? And do you think that the Bitcoin rally will continue from here on? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.