Bitcoin has been in a constant struggle to cross $40,000 and even stay above $30,000. It has time and again slipped below the price point but recovered again. Even on 27th Jan, the price of the currency went below $30,000 for some time. It has now recovered and has been trading at $33,000 as investors stay confident about the cryptocurrency. The decrease in the price of Bitcoin was not specific. In fact, all major cryptocurrencies, Etherium, Ripple, and tether, registered losses on the same day.
Positive news for Bitcoin
There have been reports suggesting that investors have acquired almost 2,70,000 bitcoins for long-term holding. At the same time, Banks are also coming into the bitcoin market. Recently, a Switzerland bank released their guidance on the investment in Bitcoin. While 2020 has been a year when companies have considered Bitcoin as a viable asset for investment. 2021 might be the year when banks might join in and accept the cryptocurrency. Very big companies and asset managers are already investing in Bitcoin. These names include Blackrock, Goldman Sachs, and others. While some have already stepped in, some are thinking about their decision to make an investment.
While investors are moving in and out, most are making profits, according to a report. In the future, as Bitcoin becomes more common and becomes trustworthy, it will be looked at as a viable source of investment. Bitcoin is also being looked at as a proper alternative to the dollar for using it in balance sheets. A Twitter follower gave Elon Musk the same advice a while back. Bitcoin is here to stay, and until something goes catastrophically bad, it is bound to grow in the future.
Problems we are looking at
Even though there are so many positives, a lot of negatives have also been affecting Bitcoin. Recently, a finance official from the US said that she is against cryptocurrency because it is being widely used for illegal purposes. At the same time, the prediction made by JP Morgan analysts that Bitcoin might crash if it doesn’t go over $40,000 again. All this adds up affecting the price of the cryptocurrency.
At the same time, false news regarding a fatal flaw in the currency also surfaced. I am talking here about the double-spend bug that allows users to spend the same currency twice. Even though it was a false alarm, the news affected the price of the currency drastically. The currency poses a lot of positives and negatives at the same time. And it is a matter of time before we see one outweigh the another.
What are your thoughts on the currency dipping below $30,000 time and again? Do let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.