If history repeats Bitcoin will drop below $10k in a few days

Bitcoin became the first token to make its entry into the global investment market. The token was initially aimed at making peer-to-peer transfers easier. It means an investor can easily transfer tokens from his digital wallet to others, there are some inputs here regarding bitcoin investment.

Bitcoin made use of blockchain philosophy and a decentralised finance model. It means every user transaction is broken down into single units of blocks. These blocks were in turn stored in the network platform in multiple units of chains. These chains are provided with unique user references. Such user reference codes do not necessarily trace back to their original investor. This process of assigning each user a unique reference is also known as data mining. The process involves a huge volume of user transactions using massive energy consumption. There is a need for a large volume of internet connectivity and electricity. Considering such usage, Bitcoin investments have always been considered to cause environmental hazards.

Another interesting working model of Bitcoin is the concept of decentralised financing. It means any transaction undertaken using Bitcoin does not involve any banking agencies. Tokens are transferred to each other’s accounts in minimal time. The recipient on the other end can hold these funds or withdraw the same using fiat currency. The lack of involvement of such banking agencies attracted many investors.

The total volume of Bitcoin investments has grown substantially. Today, crypto holds a market volume of more than $3 trillion. More than 50% of this investment is directly contributed to Bitcoin investments.

Growth of Bitcoin investment in the global market

The launch price of Bitcoin was only $1 per token. The price of this token kept increasing continually. In 2021, the selling price of this token rose to $63k per token.

The crypto market is indeed highly volatile. The prices continue to fluctuate regularly. The Bitcoin market is open 24*7. It means the price of what you invest in the night may not be the same next morning. It simply means the market is working while you are sleeping.

Additionally, there is also a need for you to invest with utmost care. As an investor, you need to completely understand this investment model.

Bitcoin as a payment model

With the growing interest in Bitcoin, its uses also increased. Many companies and online shopping companies are coming forward to accepting Bitcoin. Popular multinationals including Microsoft, banking agencies like JPMC, etc accept Bitcoin payments.

Earlier, Tesla had also tweeted about accepting Bitcoin payments for their automobile.

Market performance in 2022

The Bitcoin market has been depressing in the current year. In January, the token recorded its highest price of $48k. Since then the market has been dripping. Initially, the token fell to $40k. The following month the prices fell sharply touching $30k per token. It created a huge change in the market performance. More than $1 trillion in crypto investment was wiped out.

Beginning June 2022, the token showed mild changes in its performance. The prices continued to trade at $30k per token. But towards the end of June, the price of this token has reduced by less than $15k. Investors across the world keep a depressing face on the prices of Bitcoin. Market experts also predict that tokens may reduce even further. The token may reduce the prices to less than $10k per token.

As an investor in Bitcoin, you need to keep certain factors in mind. The price volatility is the primary factor. Experts in Bitcoin investment advice keep only 5% of funds in this token. While you may try varying portfolios it is important to limit your funds to what you can afford.

Also, the price rise and dip need careful understanding before making any decision. Do not let sudden price fluctuation affect your investment decision. Ensure that your finances are always covered. Do not make risky investments using your retirement funds.

If you are a Bitcoin investor, then do not get worried about the price fluctuations. Now, it may not reach $65k soon, but yes the prices will increase. The market fluctuation will continue to affect the pricing. Do not make an emotional decision and sell your holdings.

Noah Murphy
Noah Murphy
If Life is just a game and luck is for losers - Then I am winning the game

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