The first thing that comes to mind when we think of cryptocurrency is Bitcoin, the original crypto that was founded in 2009 and caused a stir around the globe 12 years ago. Back then, it was a one of a kind, decentralized and unregulated asset that people were skeptical about and did not know what to do with. The Bitcoin tokens were accessible at incredibly cheap rates while promising massive profits, which sparked widespread skepticism as well as criticism from government officials. You can convert BTC to INR for a better understanding of the crypto’s value.
But in time, bitcoin gained traction and the value of this cryptocurrency reached unforeseen heights, almost gaining over 100% and making investors rich. This was due to various reasons and Bitcoin quickly monopolized the crypto market. Even to this day, despite a lot of ups and downs, Bitcoin has managed to remain on top. Presently, it is the most valuable cryptocurrency to hold. Even in nations like India, bitcoin has managed to make its place in the market and has become one of the most lucrative tokens. To buy bitcoin in India, you can use a trusted crypto exchange.
Bitcoin’s performance so far
Bitcoin began 2022 almost twice as valuable as it was in January 2021, concluding a year in which cryptocurrencies exploded in popularity and curiosity among the general public. However, by the end of January 2022, Bitcoin had virtually lost all of the previous year’s gains, dipping below the $33,000 level.
Over the weekend, Bitcoin (BTC) went below $20,000 for the third time this year, continuing its downward trend. The most popular cryptocurrency has now reached its 52 week low of $17,000, possibly the lowest prices since its inception. It is predicted that bitcoin will gain its value in the coming months with some experts predicting that it will reach $100,000 by the end of this year. BTC is now trading around $20,500, and crypto investors are prepared for more losses. Price volatility, social media engagement, and trading volume are among the characteristics tracked by the index.
The value of other major cryptocurrencies has also plummeted. Ethereum (ETH) is down around 9% in the previous seven days, Ripple (XRP) is down 6%, BNB (BNB) is down 7%, and Solana (SOL) is down 12%. Due to current world events, such as the pandemic and other big worldwide continuing issues, the overall cryptocurrency market value has plummeted.
This has led to speculation among investors as to whether Bitcoin has achieved its all-time low. Here’s what experts have to say about it.
What will happen next?
Some overly optimistic gurus have been predicting a Bitcoin price bottom for months. Bitcoin is projected to reach new all-time highs in the near future, as it did twice last year. In the medium term, however, global economic tightening measures continue to put pressure on high-risk assets like bitcoin.
Governments and central banks utilized a range of stimulus measures to keep the economy going during the outbreak. Authorities are now reclaiming them in an effort to rein up inflation. Uncertainty over the future of cryptocurrencies has been sparked by a number of events throughout the globe. Bitcoin’s value is expected to decline much more, so investors should be prepared.
It’s hard to predict how far Bitcoin will fall since cryptocurrencies are new and untested investments. Other analysts, on the other hand, forecast a $28,000 level of support, followed by a level of support of $20,000. Peter Brandt, the seasoned trader who predicted the 2018 disaster, has tweeted that Bitcoin might fall to approximately $28,000 before conditions improve.
What Is Bitcoin’s Long-Term Prospect?
The nature of bitcoin is incredibly volatile in and of itself, and this, combined with external variables, has a greater overall influence. While we might expect additional volatility in the near future, buy-and-hold investors should focus on long-term goals. There are no guarantees about what will happen to cryptocurrencies, and you should do your own study before putting your money into it. However, you can afford to take a long-term perspective if you only invest money that you don’t need right now.
Some well-known financial gurus predict the price will finally go to zero, while others believe it will rise to one million dollars or more. Bitcoin proponents argue that the top cryptocurrency is akin to digital gold, and that it may one day become the internet’s future currency.
Skeptics, on the other hand, think that Bitcoin has no fundamental worth and that it will fall in value and finally vanish. Always exercise prudence and gather sufficient information before making any transactions, and only invest a safe amount of money. Keep in mind that every investment should be seen as a marathon rather than a sprint.