Bitcoin is down more than 50% from its all-time highs in 2021. As a whole, the crypto market is vastly hampered. No one knows for sure but some experts stated that crypto prices even could fall further before any constant recovery.
Bitcoin hiked multiple new all-time hiked prices in 2021. In 2022, the price of Bitcoin crashed significantly. Investors are stressed and worried about the price fall of digital tokens. But the long-term investors aren’t worried as they have been through a 73% decline before. The previous declines didn’t involve anywhere near the total market cap that has faced this time.
With confirmation that prices reversed slightly this month, Bitcoin might be able to burst again above its recent trading range. Some experts stated that Bitcoin is showing some signs of steadying lately, but the market zone is not out of danger yet.
Why is Bitcoin still falling?
The price of Bitcoin is still crashing because of the wider global climate. Various factors lead crashing of the bitcoin price; the recession has appeared indistinctly, inflation is soaring, interest rates are rising, and living costs are increasing.
As a result, big investors are less free with their money to invest and ordinary investors have less to invest in anything. For many, new investors’ cryptocurrency is not a good choice for investment as it is volatile and unpredictable and feels like a great risk too.
Bitcoin is unregulated and unauthorized by financial authorities. So, people don’t prefer to invest in Bitcoin as they lose its value. In the last few months, we have seen many significant coins have collapsed. As a result, people gradually decided to sell up.
The more people sell, the more Bitcoin will crash. Its value is related to its desirability. During this period more investors are selling because they can see the value is going down. This cycle continues.
What does a Bitcoin is dead mean?
“Bitcoin dead “is a phrase that is used to describe that bitcoin has lost its value. A coin refers to a cryptocurrency that has disappeared or is likely to disappear due to some factors. These factors may be hacking, traders’ or investors’ lacking interest, or being exposed as fraudulent.
If a particular coin’s trading amount has been less than US$ 1,000 in the last three months, the coin is measured as dead. But this is not the first time that Bitcoin seems to be collapsed.
Keyword searching plays an important role here. The number of searches for “Bitcoin dead” is very high this time.
Factors that made Bitcoin price fall-
The primary cause of the price fall of Bitcoin is its volatility. There are several factors also contribute to the decline of the Bitcoin price.
Celsius platform: Celsius is a decentralized financial platform. It is the largest platform for lending crypto assets. This platform plays a vital role to make people feel bad about the crypto market.
Because of Bitcoin’s extremely worse situation, Celsius is temporarily suspending its all exchanges, withdrawals, and transfer between accounts. We may expect that Celsius in a better position to meet its withdrawal position over time.
The Federal Reserve Policy: New policies have been introduced by The Federal Reserve concerning the increasing rate of interest. For this, many investors initiated selling their crypto assets including Bitcoin.
Is Bitcoin dead?
At least not for the time being Bitcoin is not dead. Many experts started different views regarding this. The reason Bitcoin stays alive is that its price fluctuated intensely until it loses value.
But to be considered dead Bitcoin’s price must reach zero, there should be nothing to trade. Despite high-risk volatility, Bitcoin remains a great choice for people who are interested in the crypto world.
Raise an interest even after the fall?
Bitcoin is down more than 20 percent from the beginning of the year, 2022. All cryptocurrencies have crashed as the Central banks globally tried to combat inflation by raising the interest rate. On Sunday, Bitcoin faced another round of fall, slipping below $35,000 per coin as the global crypto market went through a massive collapse.
The US Federal open market committee has decided to raise the interest rates by 0.5 percent to make the biggest upward adjustment over two decades. Federal Reserve has taken this step to combat inflation. Federal Reserve laid out plans to raise the interest rate in November last year, but Bitcoin’s price declined by over 40 percent.
Will BTC go up again? Here’s what experts and trends suggest
According to Bitcoin obituaries, the top cryptocurrency has died 455 times till now. In 2022, Bitcoin has already been declared dead so many times. The most recent obituary written by Euro Pacific Bank owner Peter Schiff stated that Bitcoin will not recover. Schiff also added that this crash is the beginning and Bitcoin will not recover.
It is too early to say that the crypto market is dead, said WazirX Trade Desk, and also added that the crypto market has tumbled lately. Market experts said that the latest fall in the crypto market is not only Industry related phenomenon but also an effect on the financial market globally.
Bitcoin has reclaimed its $20,000 perch but Schiff believes it’s nothing to be excited about. He also added that this is another bull trap. The drops were not in a straight line rather this slow-motion crash has been extremely orderly.
At the time of writing, Bitcoin was trading over $21,000 and it is almost a 6% increase over the last 34 hours. For the last two days, investors are looking to purchase Bitcoin at a cheaper rate. According to cryptocurrency experts in India, if the current buying momentum weakens, Bitcoin may fall again.
According to experts, the recent recovery yet is considered an optimistic trend as the crypto market continues to stay in the fear zone.
Conclusion
So, as you can see there are plenty of reasons to accept that Bitcoin is not dead yet. If we judge thoroughly we can assume that the price of Bitcoin may rise again in the future. Bitcoin might have a way for cryptocurrencies to flourish. Despite its flaw, Bitcoin is still the first preference of investors. It has provided an alternative currency for underdeveloped countries and has opened the way for economic transformation.
There is great volatility in cryptocurrency’s exchange rate. So, there is a high risk of trading these digital currencies. Despite being a high-riskier investment, Bitcoin has survived after being declared dead many times in its short-term history. It residues to be seen what the future holds for the top cryptocurrency.
