Close Menu
NERDBOT
    Facebook X (Twitter) Instagram YouTube
    Subscribe
    NERDBOT
    • News
      • Reviews
    • Movies & TV
    • Comics
    • Gaming
    • Collectibles
    • Science & Tech
    • Culture
    • Nerd Voices
    • About Us
      • Join the Team at Nerdbot
    NERDBOT
    Home»Nerd Voices»NV Finance»Why has the price of Bitcoin fallen so much and what does the future hold for it?
    (Quantum Ai Trading) https://quantumaitrading.net/
    (Quantum Ai Trading) https://quantumaitrading.net/
    NV Finance

    Why has the price of Bitcoin fallen so much and what does the future hold for it?

    Nerd VoicesBy Nerd VoicesJanuary 12, 20234 Mins Read
    Share
    Facebook Twitter Pinterest Reddit WhatsApp Email

    Learn what has caused the Bitcoin price to plummet and see if Bitcoin investing has a future. If you are interested in this article, we recommend you read on.

    These are hard times for Bitcoin fans in Spain and also for investors relying on other cryptocurrencies. In November 2021, Bitcoin investors were still able to celebrate the record price of 69 000 US dollars, but the joy did not last long. Since then, the value of the currency has fallen by more than 60%. Other cryptocurrencies such as Ethereum also have to accept severe losses. At times, the coin dropped 22% daily, the lowest level since December 2021.

    It has become clear that the measures taken by the Fed to date have not been enough to curb the country’s high inflation rate. When this became public on Friday, the bad mood in the financial markets abated significantly. The U.S. dollar has since become more expensive and stock prices have plummeted globally. The Dow Jones, S&P 500 and Nasdaq 100 all plunged massively, with the DAX suffering its biggest daily loss in more than three months.

    Bitcoin – No inflation protection

    The fact that Bitcoin and company are highly volatile is nothing new. However, during the record-breaking phase last November, some experts already considered them a hedge against inflation. That is no longer the talk of the town: Bitcoin is now far from the record high.

    But not only private investors are actively participating in the sale of cryptocurrencies. According to finanzen.net, mining companies are also launching their coins on the market and can be profitable depending on the general description of the cryptocurrency to be launched. Bitcoin mining consumes a lot of energy and is currently becoming a loss-making business for many mining companies in a worsening market environment. So they are selling their holdings: 195,663 coins in May alone, according to Bloomberg. This corresponds to a value of US$6.3 billion.

    Risks of investing in Bitcoin

    Before making any investments in BTC, you should always be aware of the risks associated with buying cryptocurrencies. The price of bitcoin remains much more volatile than the stock market, for example. Even though many investors are obsessed with watching the bitcoin price, it is always a snapshot and therefore not always very important for the cryptocurrency market in the long run. A less risky way to invest is to exchange Monero to BTC at specialized services with a guarantee.

    Factors such as legal regulation, the recognition of Bitcoin as an official means of payment and new waves of bans, such as in China, are much more decisive for the long-term BTC forecast than short-term fluctuations in the BTC price.

    Of course, the way the U.S. dollar is managed also plays a role, for example in the form of interest rate hikes by the central bank or similar measures. It is likely that the Bitcoin price will continue to rise in the long term, after all, the maximum amount of issuance is limited, while the amount of US dollars and euros in circulation continues to increase.

    Are cryptocurrencies a good investment?

    Many investors are currently wondering whether they should take the opportunity to get into Bitcoin at a low price. Analysts and experts disagree on how the crypto market will continue, because unfortunately they too cannot see clearly.

    However, many experts assume that things could get even worse before Bitcoin and company recover. The largest cryptocurrency may even reach the next magic mark of $20000.

    However, it has become clear that they are not as suitable as a hedge against inflation to the same extent as, say, classic gold. So, if you want to enter the world of cryptocurrencies with this thought, you should think twice before taking this step, because the losses can be huge.

    Is it worth investing now or should you wait?

    The question many investors are asking today is whether to invest now or wait for better prices. This question is impossible to answer as no one knows what the price will be in a week, a month or even a year. Bitcoin’s value in US dollars is always just a snapshot and depends on too many factors to be able to predict it meaningfully.

    Do You Want to Know More?

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
    Previous ArticleThe 5 Best Foldable Phones to buy in Australia (2023)
    Next Article Making Pet-Specific Plush Toys
    Nerd Voices

    Here at Nerdbot we are always looking for fresh takes on anything people love with a focus on television, comics, movies, animation, video games and more. If you feel passionate about something or love to be the person to get the word of nerd out to the public, we want to hear from you!

    Related Posts

    8 Tools to Help You Monitor Vehicle Efficiency

    July 8, 2025

    An In-Depth Review of Paperbell: What Coaches Are Saying About Its Features and Performance

    July 8, 2025
    Mobile App Development

    Key Factors to Consider When Hiring a Mobile App Development Company in the USA

    July 8, 2025

    The Rise Of Kratom Seltzers: From Ancient Ritual To Modern Refreshment 

    July 8, 2025
    Your First Real Estate Investment: The Simple Guide That Actually Works

    Your First Real Estate Investment: The Simple Guide That Actually Works

    July 8, 2025

    How to Download Netflix Movies on MacBook: A Complete Guide

    July 8, 2025
    • Latest
    • News
    • Movies
    • TV
    • Reviews

    Body Found in Pasadena, CA Goodwill Donation Bin

    July 8, 2025

    Netflix “Monster” Season 4 May Focus on Lizzie Borden

    July 8, 2025

    Convicted Felon Billy McFarland Lists Fyre Fest for Sale on eBay

    July 8, 2025

    Cameras Are Rolling on “Dune Part 3”

    July 8, 2025

    Body Found in Pasadena, CA Goodwill Donation Bin

    July 8, 2025

    Convicted Felon Billy McFarland Lists Fyre Fest for Sale on eBay

    July 8, 2025

    James Gunn’s “Superman” Brings Updated Meaning to the Man of Steel [Spoiler-Free Review]

    July 8, 2025

    The F11PRO 2 Drone – Pro-Level Performance Meets Sleek Design

    July 3, 2025

    Cameras Are Rolling on “Dune Part 3”

    July 8, 2025

    James Gunn’s “Superman” Brings Updated Meaning to the Man of Steel [Spoiler-Free Review]

    July 8, 2025

    Jon M. Chu to Direct Live-Action “Hot Wheels” Movie

    July 7, 2025

    Fantastic Four Baxter Building Listed on Zillow for $4.444 Million

    July 7, 2025

    Netflix “Monster” Season 4 May Focus on Lizzie Borden

    July 8, 2025

    CD Projekt Red Confirm “Cyberpunk: Edgerunners 2” with Teaser

    July 5, 2025

    “South Park” Creators Call Paramount-Skydance Merger ‘S***show’

    July 4, 2025

    “Trainwreck: Storm Area 51” Gets Teaser for Netflix Docu

    July 2, 2025

    James Gunn’s “Superman” Brings Updated Meaning to the Man of Steel [Spoiler-Free Review]

    July 8, 2025

    The F11PRO 2 Drone – Pro-Level Performance Meets Sleek Design

    July 3, 2025
    "M3GAN," 2025

    “M3GAN 2.0” A Sequel That Forgets to Have Fun [Review]

    June 29, 2025

    “F1: The Movie” Thrilling Cars, Crash and Burn Story [Review]

    June 28, 2025
    Check Out Our Latest
      • Product Reviews
      • Reviews
      • SDCC 2021
      • SDCC 2022
    Related Posts

    None found

    NERDBOT
    Facebook X (Twitter) Instagram YouTube
    Nerdbot is owned and operated by Nerds! If you have an idea for a story or a cool project send us a holler on [email protected]

    Type above and press Enter to search. Press Esc to cancel.