Bitcoin has been known as a futuristic medium of exchange. Additionally, some of its avid followers believe it is a store of value, advertised as “digital gold.” As March ushers in, Bitcoin appears to be crashing.
Based on the update posted online by the financial markets-focused website MacroBusiness, Bitcoin’s fluctuating trading price movement comes along with the US dollar bottoming and real US interest rates marching higher with bond yields. Plus, the United States of America is in the middle of a mushrooming coronavirus or COVID-19 vaccine rollout, potential economic rebound, inflation, and yield advantage to Europe.
We believe that this latest development about Bitcoin is important to monitor. We can learn more important insights regarding the world-renowned digital currency’s behavior and understand how we can adapt and benefit as backers and investors of it.
Bitcoin is trading at exactly $46,504.77 at the time of writing, as per Coinmarketcap.com. For some investors, BTC’s fast fall makes it more volatile compared to gold. According to the report posted online by international business-focused media firm Forbes, since its peak last weekend, the Bitcoin and digital currency market have lost grip of approximately $400 billion. This event comes as panic disseminates among traders.
Although Bitcoin stays up nearly 50 percent since the beginning of the year, its trading price has nosedived nearly 25 percent as of today, Monday, March 1. The world’s popular cryptocurrency’s trading price has plummeted as low as $43,000 following coming in touching distance of $60,000 per Bitcoin in February’s final week.
We do not feel fazed by Bitcoin’s trading price seemingly crashing. After all, the popular cryptocurrency is well-known for its extreme volatility. We can all remember that back in 2017, Bitcoin’s trading price climbed to the neighborhood of $20,000. Then, in the following year, it crashed to $3,000.
Then, in March 2020, we can recall that Bitcoin’s trading price dropped below $4,000. It rebounded through the summer of last year, followed by the start of its latest bull run in October. Bitcoin’s trading price passed its 2017 high in Christmas 2020 as institutional investors demonstrated renewed interest in virtual currencies.
With this up-and-down, rollercoaster-like movement of Bitcoin’s trading price, we believe that we should not feel perturbed at all. After all, it is innate in the digital currency’s trading price to fluctuate, then skyrocket, and then drop again, and so forth. We merely have to accept Bitcoin and other digital currency’s volatile nature and carry on our support for it.
Many doubters have already changed their minds and have become Bitcoin and digital currency investors. We believe that these events merely indicate that cryptocurrencies hold an important place in the present and future financial markets, regardless of their demonstration of capriciousness now and then.