Bitcoin Price Worries: There is currently a bit of Bitcoin Price chaos, we use this opportunity to look at what has happened to the Bitcoin price in the past and why NOW is possibly a good time to buy. Make clever choices, plan your trade and trade your plan.
The famous line “Rome wasn’t built in a day” is perhaps a pertinent point to remember in this context. We are merely 9 years into this exciting industry and it needs time. The promise of decentralized, transparent and immutable systems cannot be perfected overnight. However, there is no doubt that the foundations are solid.
There will be stumbling blocks and there will be crashes. The landscape may be completely different from today in 10 years time. Don’t write bitcoin off just yet.
There’s no standard or global Bitcoin price. Unlike many local currencies, Bitcoin isn’t pegged to anything (meaning it is not fixed to another currency or asset like gold.) Market uncertainty will cause people to act on their bitcoin price worries.
It’s like asking: “Why does a bag of rice cost more in one supermarket, city or country compared to another?” It’s all down to supply and demand. Without a currency peg, bitcoin prices shift depending on how many people want to buy and sell them, at what price, and in what quantity.
Be greedy when others are fearful, and fearful when others are greedy
Warren Buffet’s famous line “Be greedy when others are fearful, and fearful when others are greedy” has been largely ignored.
Rather, people have been greedy when others have been greedy and fearful when others have been fearful. This has created the yo-yo effect that we are currently experiencing in the market.
Many people relate the cryptocurrency industry to the dot-com era. Some even go ahead and say that the virtual currency is a bubble. Similar to the Tulip craze. When I look at the market, the history, and the predictions, I cannot fail to realize the fall that Bitcoin price has experienced since the historic rally in December 2017. Bitcoin is currently trading at roughly R100k although it exchanged marginally below R250k at the end of last year. This is a drop of more than 70% in less than 10 months. Sounds bad, right?
Here are 3 reasons why many traders are choosing to buy bitcoin right now:
In fact, the dip spooked most of the long-term investors. They too are having bitcoin price worries. However, many cryptocurrency expert analysts have maintained that Bitcoin will rally towards the end of 2018. While we are already deep into the third quarter of the year the predictions are beginning to feel more like speculations. However, Bitcoin dominance continues to rise in the market. It had dropped to levels slightly above 30% In January 2018 but it is currently at 53.2%. Last year there was a drop in Bitcoin dominance to 37.81% followed by a surge that culminated in the historic rally in December 2017.
Bitcoin ETFs have become a hot topic for discussion in the crypto industry. Traders and Brokers agree that this will allow institutional investment to flow into these ETF’s. The SEC did not approve of any ETF application so far. Many proposals for the same have failed. The US Securities and Exchange Commission rejected at least 11 Bitcoin ETFs proposals this year alone, while one has been pushed to the end of September. The SEC will review 9 of the 11 rejected applications next year.
The SEC deadline for a Bitcoin ETF in 2018 is the 30th September 2018. There is still time for an approval. However, many investors and institutional investors are looking forward to the time when an ETF application will go through as a regular course of business. The market will start to see a fresh influx of funds from these investors and this could trigger a rally. This will shift all bitcoin price worries to stressing about not getting enough BTC quick enough.
Bitcoin drives the price for the majority of altcoins. While Bitcoin has lost over 70% of its value, causing much distress, some of these altcoins have recorded losses of over 90% according to CoinMarketCap. Bitcoin is showing the potential for recovery. In contrast, immense selling pressure by traders is giving the majority of the altcoins a walloping. Most are unable to make significant progress. Ethereum is about the break through the R3000 support … the wrong way.
In conclusion, the above reasons are meant to help you as an investor to make a decision between buying altcoins and sticking to the King of the cryptos, Bitcoin. However, it is essential that you carry out your own research before buying any digital asset.
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This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.