“Will the price of Bitcoin rise again?” is the one question potential investors want a solid answer to. For sure, no one can ever know the future of Bitcoin’s price and this is why most of the analysts have called it a “dot com bubble.” Bitcoin was incepted by Satoshi Nakambo in 2009, and ever since the price has faced its highs and lows. Most recently, in 2018, the price free-fell from $20,000 to around $7,500. There are analysts who strongly highlight that the price of Bitcoin will never rise again. Check this research by PaperCheap.co.uk experts.
A closer look at Bitcoin’s price trend reflects a very unpredictable wave. The first dip was in 2011, when the price dropped from $2 to $31. In 2013, the price once again fell from $1000 to $300. Preliminary analysis showcase that the price tends to rise very high soon after a plunge.
This is often expected with cryptocurrency, where prices have to hover for a while before going back up. However, to closely answer whether the price of Bitcoin will rise again, a detailed analysis of the cryptocurrency market is highly needed.
Like every currency in the world, there are fluctuations in their retailing price. Bitcoin is no exception. The only difference is that fluctuations in Bitcoin are on a greater scale. The price of Bitcoin drops significantly when millions of people sell their Bitcoins in a small span of time, and more importantly, on a price lower than the prevailing and actual price. Selling Bitcoins at a relatively lower price causes the value to plummet. This quick offloading is often caused by speculations that the price will fall, and investors act on this trying to regain their investments as quick as possible. It is crystal, therefore, that news on cryptocurrency affects the prevailing price.
Reasons to rise
The highest price peak was in December, 2017, and was highly attributed with the media frenzy that surrounded Bitcoin at that time. This caused a “Bitcoin rush,” as everyone strived to get hold of Bitcoins for themselves. From this, it is clear that positive news and speculations are an essential tool in the determination of the price. As so, Facebook has lifted a ban on cryptocurrency advertisement on their platform. This is to say that Bitcoin has now the channel to advertise to over 2 billion users. Beyond this, investors are taking advantage of the “Bitcoin winter” to invest in Bitcoins. Andreessen Horowitz, a venture capital company, has already invested $300 million. Many more investors are buying Bitcoins at this point and in no time, the price will rise again to counter the demand that will soon arise as people, once again, rush to buy Bitcoins.
Digital age, digital currency
The world has taken a paradigm shift from an analogue age to a more digital one. Technological advancements dictate that the world isn’t halting its digital progress anytime soon. Experts say that even if the price of Bitcoin doesn’t rise now, it is almost inevitable that it will in the long run, because the digital age is heavily in need and reliant on a digital currency. Some business and merchants acknowledge Bitcoin as a means of payment and this shows the potential that lies in Bitcoin and cryptocurrency. In the recent times, financial institutions have become the newest entries in the Bitcoin market. Their analyses on the market indicate and show an investable opportunity. It is close to impossible to determine whether the prices will rise again, but it is absolutely clear that there is no barrier to the rise of Bitcoins.