The year 2021 has been pretty convincing for the World that investing in Crypto is a viable option to go for. For Bitcoin, it has especially been a good year. Those who invested in it timely gained more than what they lost! The value of digital currency has exponentially increased this year. With a percentage of around 70% rise, it has become the most expanded business market in the World. On average, the crypto market got a value generation of around 2$ trillion from across the globe.
A Major Development In The Crypto Company Establishment
Before the year 2021, no one really had any idea regarding a crypto company. It was only in the year that a company with the base on Crypto had gone public. This happened in the month of May. Coinbase, the first digital company based on Crypto, had gone public. This, in a way, gave legitimacy to the crypto investment.
As the participation of some of the biggest banks of the United States of America enhanced in the crypto investment, people started believing in the digital currency phenomenon more! Alongside this, the exchange-traded fund of the United States also got linked with Bitcoin. It brought a transition in the thought process of all the left-wing thinkers who were averse to investing in bitcoin.
The Sufferings Of Bitcoin
However, it would be wrong to say that everything escalated for cryptocurrency, especially bitcoin, in the year 2021. There had been some negatives as well, which affected Bitcoin badly. For instance, with the augmented scrutiny in the regularization of Bitcoin, along with the price fluctuations that got intense twice in the year, the capital sharing prospects of bitcoin got affected. This, for a few ensuing months, kept the investors in a shell who avoided investing in for quite some time.
What Does The Future Hold?
If reports are to be believed, there are a lot of industry and trading experts that believe that in the coming months, bitcoin may see a sharp decline. After going through an in-depth analysis of the way the market fluctuates and the mindset of the investors, the experts have come up with one prediction; bitcoin may go down in the coming months.
The market is volatile. Cryptocurrencies can’t be trusted as they never show the same trend every month. For instance, in the month of November this year, the value of Crypto was as high as 69000$. When the investor placed the bets on the digital currency, it showed a downward trend. Later in just one month, it took a dip and went as low as 50000$. This proves that the World of crypto trading and investment is surely unpredictable to the more.
The Volatility Of Bitcoin
What sets bitcoin apart from others is that it is the most volatile cryptocurrency of all. This means that the effect of the market is shown on it at the highest degree possible. The trends of bitcoin show that it has the tendency to give huge profits in one month and an immense amount of shock in the next one!
According to a lot of experts, it is a wise decision to come out of bitcoin at this point in time. They think that bitcoin will most probably crash next year. Hence, there is no reason to keep clinging to it for more!
This prediction of the expert also has a historical base. They have studied the past trends of the market way too deeply to have come up with such an analysis. In the year 2018, bitcoin has jumped quite high and has reached as far as 20000$. This was quite an unexpected jump by it. However, after staying at this point for a few months, it jumped down to a depth of around 3000$.
However, there are two schools of thought. Those who back cryptocurrency don’t want to believe an ensuing crash is coming up. Rather, they feel like things are very different this time around, and they have their entire trust rested on bitcoin.
The World of Crypto is extremely unpredictable. The market is volatile and cruel. The best way to deal with it is by keeping your eggs in different baskets and investing in various currencies rather than relying on a single one.