Bitcoin Below $40,000: Is This the Right Time to Invest

Bitcoin’s price has remained over $40,000, with highs of $41,000 earlier this week following the Federal Reserve’s announcement that interest rates will be raised for the first time in three years.

After President Joe Biden’s signing of a wide executive order on Cryptocurrencies on 9th March, which calls on government agencies to draught a strategy to regulate Cryptocurrency and to propose a government-issued central bank digital currency, Bitcoin has remained stalled below $40,000.

Bitcoin’s price has been fluctuating in recent weeks, but it has been steadily rising in recent days. 

The last time Bitcoin went above $45,000 was on 2nd March, while the year’s high point so far has been in the first few days of January when it nearly reached $48,000 on 2nd January. 

As a trader on bitcoin prime, I have come across some real highs and lows in Bitcoin investment, which is why I’ve taken the time to tell you all about it today.

Stay tuned!

World Events Are Fluctuating Bitcoin Economy

The concept of Bitcoin was born out of the belief that traditional financial institutions were no longer capable of sustaining a stable monetary system. As a result, people were losing trust in the systems they had become accustomed to and were eager to try something new.

The rise and fall of Crypto values are also influenced by current world events. For example, the recent demonstrations of political influence on personal money, the freezing of personal accounts in Canada, and the sanctions against doing business with Russia have raised awareness of personal control around modern financial systems.

Ukraine has long been a leader in crypto adoption, and the Cryptocurrency community has responded by raising millions of dollars to donate to the nation. 

On the other hand, as nations refuse to do business with Russia, it is expected that Russian people and entities would convert their Rubles to Cryptocurrency to preserve the value of their assets and deal with the outside world. 

As global markets fluctuate due to a slew of current problems, the price of Cryptocurrency is expected to change as well. 

When considering whether to purchase the dip, bear in mind that the world is in the midst of an extremely volatile period, with sharp, rapid jumps and decreases possible.

Some Tips for Investors

In recent months, the Crypto market has been more closely linked to the stock market, making it even more entwined with global economic variables like those resulting from Russia and Ukraine’s war, which has boosted volatility in both the Crypto and stock markets.

If you’re considering investing in Cryptocurrencies, be prepared for more volatility. 

Therefore, experts recommend restricting your Crypto investments below 5% of your entire investment portfolio.

I know these events are extremely uncertain. However, if you plan to invest in Bitcoin, think about it in the long term. 

Don’t go out and purchase extra Cryptocurrency every time the price goes up. Be sure you have all of your financial bases covered, from retirement accounts to emergency savings before investing in risky assets like Bitcoin.

Bitcoin’s most recent significant increase is likewise nothing new. However, while Bitcoin’s price has risen in the long run, there has been a lot of volatility along the road.

Hence, I think investors should continue to hold and not be concerned about the volatility.

The greatest thing you can do is not look at cryptocurrency, regardless of whether it is going up or down. Like any other long-term investing account, you can set it and forget it. If you allow your emotions to get the best of you, you can sell at the wrong moment or make a bad judgment, 

The Future!

Bitcoin and Cryptocurrency are relatively new investment alternatives that are still gaining pace and appeal. So even if you buy now at what appears to be a high price, it might easily be at the low end of the price charts in the future.

The Federal Reserve’s intention to hike interest rates and the upcoming quarterly expiration of Bitcoin futures contracts might significantly impact Bitcoin’s price. Bitcoin’s quarterly futures contract expires in late April.

Because of the Federal Reserve’s re-calibration, demand for the dollar is expected to rise; it’s feasible that alternative assets like Bitcoin may lose value. Furthermore, with the expiration of Bitcoin’s quarterly futures contracts, it’s impossible to predict whether more individuals would purchase or sell the cryptocurrency based on the conditions. 

In any case, the increased activity will certainly cause Bitcoin’s price to move dramatically, as it has in the past on futures expiry days.

What Should You Do?

Consider that the price of Bitcoin is still much below its all-time high of $68,000 if you’re a long-term investor.

Even if you buy today, despite the likelihood of lower pricing in the future, there’s a good possibility you’ll make a profit in the long term.

Hence, I think it’s the right time to invest in Bitcoin, and you must go for it and reap the benefits later. 

Leave a Comment

three + 15 =