BTC stood at a price level of $69,000 in November. However, right after reaching the highest price, the price of this most popular cryptocurrency started to decline. According to the data available on the internet, the reasons are stated to be the discovery of new army coronavirus and some other volatile regions. There are a lot of factors that may affect the price volatility of a cryptocurrency. Corona is again rising, leading to the variation in BTC prices. However, apart from this, the United States Federal Reserve is also looking forward to changing the country’s rules and regulations about cryptocurrencies. Also, due to the emerging trend of cryptocurrencies and their acceptance, there is a chance that bitcoin volatility will decrease.
After reaching heights, BTC fell, and now, it seems to be stabilized. According to a report on the crypto economy the decreased attention of the central bank stimulus, the speculative demand for cryptocurrencies has hurt. Therefore, the bitcoin was standing at $46,435 on Tuesday, according to the prices in London. On Monday, there was a decrease of 6.3% in bitcoin prices worldwide, which was very problematic for some cryptocurrency investors. Apart from bitcoin, other cryptocurrencies were also not in good condition. They were also trying to recover because of the decreasing pressure from bitcoin. According to the prices, others were also falling, and therefore, they were also under the recovery phase.
Every kind of digital currency has been suffering huge losses recently because of the coronavirus pandemic and some of the regulations imposed by different countries. Also, the other investments like meme stocks and Federal reserve funds were unsuitable. There were considerable losses to the United States Federal reserve because of the increasing inflation in the country. People had lesser purchasing power, making it difficult for the market to recover the cost itself. Also, the Federal Reserve and other central banks are looking forward to controlling inflation by providing liquidity to the people. After the coronavirus pandemic, the liquidity was in the hands of people with degrees and, therefore, could not purchase goods at higher prices. The other markets are growing with higher liquidity, while cryptocurrencies are experiencing a downfall due to volatility.
Bitcoin reached a price level of $69,000 on November 10, and after that, the prices started to decline. Today, the bitcoin price is lowered by 30% of its all-time highest rates. However, some cryptocurrency enthusiasts believe that it is just a temporary dip. The declining prices this time are none other than the retail investors. Also, when the prices are lower, the retail investors and some of the enormous institutional buyers purchase many bitcoins. Therefore, the cryptocurrency market is expected to recover soon, and bitcoin will reach its all-time highest price again. BTC is the largest Crypto with the highest market cap. It is up by 60% then the opening price for 2021. It is, therefore, the best cryptocurrency to invest your money in as it provides better returns than traditional assets like commodities, gold and the global stock market.
As bitcoin prices fluctuate, people have lowered their trust in it. Earlier, people said that bitcoin could be used as a store of value and a hedge to inflation. However, the view is certainly no different. As the prices keep fluctuating, people believe that it can never act as a permanent head to the increasing inflation in every country. Furthermore, the idea about bitcoin’s maturity has been ruled out because of the price volatility. People believe that bitcoin is now matured. The immaturity of BTC prices makes it difficult for the central authorities to consider the offer of making it a legal currency. Also, the regulation of bitcoin will create a nuisance in the economy of any country.
In the words of the head of Asia Pacific, anything that is lowered down takes a long time to build the base. The same is the case with BTC. So if the prices keep fluctuating and keep on going down, it will take a very long period for bitcoin to recover. Also, the fluctuating and 55 weeks moving average of bitcoin is on the trend line of being already broken. It is going down from the predictions made during the increasing prices during a pandemic.
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