Up or down: has bitcoin reached its bottom? Is it time to buy?

5 Jul 2022 | Cryptocurrency news

The crypto market is known for its volatility, as the prices here can change on a dime. Whether the prices go up or down, we can’t say for sure, but what we can do is we can increase our chances of predicting which way the cookie will crumble this week.

If you play your cards right and you end up assessing the situation, you are sure to make a profit, but the problem is that doing this can be quite difficult, especially if you’re new to the game.

So, if you want to maximize your chances of coming out on top, you will want to look up actual data, and analyze and compare pointers from experts that can help you come out on top by the end of the day.

One of the most important debates as of late in the crypto community has been whether or not it is smart to invest in Bitcoin or not right now. If you are considering doing so, there are quite a few factors you should keep in mind beforehand.

So, in this short article, we will guide you through the latest developments in the most popular crypto coin in the world. But before we can do that, let’s quickly catch you up with the basics so we can all be on the same page.

What is Bitcoin? 

Bitcoin is the flagship coin of the crypto industry right now, and that’s a fact. It was originally developed around the 2008 Great Recession, and it instantly became a hit due to it pretty much just becoming a middleman in financial transactions at the time.

The main selling point of Bitcoin has and will always be the fact that it is a decentralized project, meaning that no central authority has any say in what happens to it on the open market.

The Recent Downfall of Bitcoin

While it is still the most valuable crypto coin on the market though, Bitcoin has been on a constant downfall since its record high of $69,000 back in November of 2021.

Many investors put their money together for the sake of pushing the numbers up, the only problem is that the value has slowly been decreasing since, causing a lot of the big players in the game to drop out or quit the industry altogether.

The numbers have gone so low that now, in June of 2022, the value of Bitcoin has dropped down to $18,000, but in the last couple of weeks has looked up a bit, with the overall price of Bitcoin nearing $20k. But whether Bitcoin has finally reached a bottom?

Why has Bitcoin Dropped? 

The main reasons why Bitcoin has been falling so low from grace are the rising inflation and interest rates that pretty much did their worst to the crypto market overall.

Many investors have decided to sell their riskier assets as of late due to the uncertainty that follows the US and UK interest rates for example, and considering just how expensive living is right now, it’s no wonder that many of the top dogs have decided to pull out before they lose any more money.

On top of that, China has also completely banned the crypto market from its servers and Russia has also shown interest in doing the same.

Should You Invest in Bitcoin? 

Before you make any investments, you need to remember the fact that several factors come into play here.

First and foremost, you should never invest in something because you fear that you are missing out on a huge payoff.

Second of all, you need to also remember the fact that it is a very risky environment to be peddling money in, and not only that but just because it is on a downward spiral right now that doesn’t mean that this will keep happening for a while now.

Third of all, in case the value does get even lower, can you handle this loss in the first place? If you’re not equipped to play the crypto market you really shouldn’t bet all of your coins on Bitcoin because it’s not a surefire way towards a profit.

Remember the fact that you can still lose all of your money, even if things seem to be going your way. For example, the value can always plummet and you can always just forget you own any of the coins and thus lose out on a big check if you’re not careful.

Last but not least, we would like to mention that cybercrime is everywhere, hackers and scammers will always be right around the corner online. It is said by Atlas VPN that almost $ 10 million worth of cryptocurrency is stolen every single day after all.

So, just remember, while it may seem like a good time to do it, you can never accurately predict every twist and turn that the cryptocurrency will take.

If you do choose to invest in Bitcoin though, you can do so through these means:

  1. Buying shares of companies that are related to Bitcoin in the first place.
  2. Purchasing Bitcoin with Fiat currencies.
  3. Investing in Bitcoin funds.
  4. Investing in Bitcoin options
  5. Pinning your money directly into blockchain technology companies.