The analysts and commentators of the ecosystem assured that BTC would reach about $100,000 before 2022, being very encouraging due to its massive sale of Bitcoin.
The most valuable cryptocurrency on the market, Bitcoin, hit an all-time high in November at $69.0000.
However, a few days and weeks later, we saw a decline that began to deepen, with Bitcoin falling below $42.000 and losing a third of its value from its all-time high.
It can be said that Bitcoin lost almost 10% of its lowest prices in three months, presenting a drop since September 2021.
Without a doubt, the cryptocurrency market has been very volatile; the magic strategy is impossible to predict, and many guarantees that it will continue to fall in price. For this reason, future investors are encouraged to carry out their research and apply according to the risk they may acquire and the capital they may lose; do not invest money that you are not willing to lose. So, for starters, start your trading journey at https://the-wealthmatrix.com/.
What’s happening today? Why is Bitcoin continuing its decline?
The most important thing about the high volatility of bitcoin is that it does not stop going up and down, but, currently, the question is gigantic.Â
You must be wondering how their projections are moving in the market. Unfortunately, at this time, traders do not know what to do.
They are buying and selling bitcoin for short-term profit.
Uncertainty reigns on the table because the markets do not set a clear pattern or the direction to follow. In reality, many experts believe that $40,000 could fall.
It is important to note that the United States Federal Reserve (FED) participated that it would apply faster to exclude the stimulus given in the pandemic, and thus combat high inflation levels. This announcement had a positive impact, causing the massive sale of cryptocurrencies, achieving a new value close to $42,000.
Every time a powerful state issues any decision that affects the country, it indirectly affects the value of cryptocurrencies; it is uncontrollable, and, given this, users take the initiative to invest or withdraw their crypto assets.
What factors can influence?
Although it is clear that currencies are going through moments of crisis, seeing a drop in levels and prices from the records reached at the end of 2021, the concern arises as to the factors or causes of Bitcoin’s fall? Name a few below.
- Futures are diluted, exchange transactions have fallen significantly, curiosity in investments is dropping, and the quantity of on the go accounts has decayed.
- Additionally, Bitcoin keep progressively unfluid and deskbound wallets.
- Weak volume would be every time Bitcoin transactions fade into a disposition where enthusiasm is lost.
- The absent accounts, in this case, the growth of active addresses, the level of activity and operations, has also stagnated
- Traders buy and sell, while whales only buy. The term whale is an actor that controls a large part of bitcoin and therefore influences the price.
- Another factor could be the economic uncertainty caused by the latest spike in covid-19 cases, and the following restrictions could see the price of Bitcoin continue to decline in the New Year.
Conclusion
Bitcoin is a virtual currency and one of the most used worldwide. Its great potential is undeniable, but to become a currency generally accepted by all, it should solve the problem of high volatility since it generates excellent mistrust.
Causing a wave of uncertainty for investors and users, so you must be clear when investing the risk you can run in the case of bitcoin is exponential.
The New Year did not start as lucky for Bitcoin as everyone expected, although it started with a year of declines.
Amid concerns about the general macroeconomic context, uncertainty and covid-related inflation remain elevated; also, many factors can affect the ups and downs that the currency presents.
Although it is a complex scenario to be the beginning of the year, investors have no doubt that these are only passing stages that, like all the breakpoints that have characterized bitcoin, every downtrend leads to an uptrend, so they hope to prepare for receiving the much-desired earnings at the beginning of the year.
It is important to evaluate the end of the year 2021 and corroborate the expectations for 2022.
