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A Bitcoin breakout might not be what the investors want right now.
Bitcoin is volatile and has an impeccable track record to generate profits and even bust investors for trusting too much. A Bitcoin crash is inevitable but the most tragic aspect of BTC is that the crypto keeps falling until it robs its investors of all their money, and it is sometimes even more difficult to predict when the BTC price will rise again and along with it empower the crypto market. The digital currency market experienced a rollercoaster ride in 2021, in which Bitcoin sunk as low as US$23,000 in July but also hit its all-time high in November 2021 by reaching approximately US$68,000. However, quite soon enough Bitcoin projected a downtrend momentum and its trajectory is still falling. But recently, as the crypto market seems to be quite eerily calm, investors and analysts believe that Bitcoin is due a breakout soon, but it is not making investors happy as it should be.
Presently, Bitcoin has been hovering specifically between US$30,000 and US$28,000. Experts think that its current performance is mainly due to the UST-induced panic. While this is still somewhat right and investors are playing the waiting game, it is also true that Bitcoin cannot remain in this position forever, hence, it will definitely make a breakout, and the point is that Bitcoin might make a breakout quite soon. But investors are quite unsure about the potential outcomes of this breakout. They are skeptical if BTC would be able to hold on to its position even if it breaks out. A bullish environment powered by the whale and institutional investors might actually help the case. Besides, several commercial luxury brands are adopting Bitcoin and several other critical cryptocurrencies for payments. These phenomena might also help Bitcoin’s case more than anything else.
What should investors’ make out of this situation?
To state clearly, currently, Bitcoin’s price is affected by TerraUSD’s fall. Stablecoins are generally intended to introduce stability to the crypto market and hold their value to centralized currencies. But since the Terra blockchain has halted, so has Bitcoin’s growth. BTC’s highest value so far has been somewhere around US$47,000, mostly it has stayed near about US$30,000.
According to experts, investors should refrain from acting amid this volatility. Besides, the increase in BTC’s value does not mean that it will retain its value. Once it starts to climb up, it will eventually come down. The future of the cryptocurrency market sure does have a lot of volatility with it, but long-term investors have to continue to deal with it.
It does not really matter if the crypto market is going up or down. Investors should always be careful about their investments at this crucial point in time. Bitcoin will definitely explode sometime, but what is most important is how the investors react to it. Amid these volatile times, the only hope for investors is to stay calm and act according to their own capabilities.