- Bitcoin’s volatility is usually at its highest in January.
- Bitcoin whales are likely to repurchase BTC if the price drops.
With the price of Bitcoin (BTC) plummeting below $50,000, the digital currency has also taken a major decrease. Long-term prospects for blockchain remain optimistic despite short-term volatility as huge institutions continue to show interest and consumers better comprehend its potential.
Rise of Bitcoin
The rise in cryptocurrencies was a direct result of the growing acceptance of the technology. The price of cryptocurrency rose as a result of more business organizations entering the market.
Tesla stated about taking Bitcoin as a form of payment for its electric automobiles; MicroStrategy continued to amass additional bitcoins, and El Salvador was drafting legislation to make Bitcoin a legitimate form of currency. Because Bitcoin’s volatility is usually at its highest in January, investors should brace themselves for some massive shifts. This suggests that Bitcoin whales are likely to repurchase the currency if the price drops.
The spike in the number of covid cases, along with central banks becoming significantly more hawkish in order to resist inflation as a response to supply chain bottlenecks and rapidly expanding demand, are all contributing to the present state of the financial market turbulence.
Bitcoin was trying to accumulate in order to avoid more losses. But the Death cross appeared and slashed another 30 percent off the value of the asset. The BTC price is expected to go below $40K in the next two weeks because of a recurrence of a similar situation. Approval of the first U.S. spot bitcoin exchange-traded fund is a major step that crypto investors are looking forward to in 2022.