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Experts believe that Bitcoin will continue to reign as the crypto king of the market
Bitcoin’s recovery from its extensive lows is quickly anticipated because investors are slowly becoming more anxious about their investments. According to reports, the BTC price has stabilized at around US$29,000. But this is not all. Since BTC is possessing the undivided attention of crypto analysts and investors, there have emerged several predictions about its current and future conditions. Some say Bitcoin was long overdue such declination and its price would further degrade in the near future. But there are several other BTC believers who anticipate that the crypto would soon regain its stature in the market and that US$29k is just its stabilizing price factor. BTC has been constantly facing short-term price volatilities, but as a ray of hope from experts, it would not immediately affect long-term investments.
The crypto market is still continuing its slump as it enters May 2022, so it is quite evident that the crypto is long overdue for a price hike. Some investors are now betting that BTC is bottoming out, based on the amount of money entering into some of the largest cryptocurrency funds in the market. Bitcoin is expected to rebound from its lows soon enough but long-term investors should not be so worried about its price fluctuations since these little fluctuations would not matter in the future.
Why is BTC so volatile?
Bitcoin has experienced a drop of more than 35% since its all-time highs of about US$68,000. BTC is notoriously famous for its volatility and is currently experiencing price movements of several thousands of dollars. From an investor’s point of view, this volatility is quite similar to a roller-coaster ride. However, understanding its price volatility might help investors to remain calm and invest according to their suitable financial conditions. Bitcoin’s price volatility is simply a concept of supply and demand, which stems from investor sentiments and other crypto market metrics.
Bitcoin’s steady decline in price over the past months depends on several factors. The Russia-Ukraine war is one of the major drivers of price volatility in the crypto market. Besides major crypto exchanges like Binance and FTX deciding to cut down leverage, declining interest in crypto-margined futures, and also the reduced levels of interest in cryptocurrencies, which are visible from the declining trading volume has also vastly affected the price of BTC.
Bitcoin’s continued adoption by luxury and high-end brands is still encouraging investors to maintain at least a sliver of hope in crypto. Currently, BTC is mostly used by traders and investors to gain profits. Nations like El Salvador accepting Bitcoin as legal currency has also helped its cause. But currently, the frequent, yet small price drops are scaring investors away, but at the end of everything, the long-term investors will stand to gain massive profits.