Will the Crypto Market Crash?
The State of the Market
While the crypto market is in a clear state of decline, it is by no means crashing. 2020 was an incredible year for BTC, and now it is moving down to a more reasonable price for the time being. For most of 2020 people were afraid of missing out on BTC’s historic rise, and now people are settling down on Bitcoin for more long-term positions. The market is most definitely moving down, and could continue moving down in the near future, however it is most likely a short-term trend.
Several current events are affecting the price of BTC. With Tesla’s decision to stop accepting BTC as a form of payment for their vehicles and the rise of environmental questions about the production of BTC, people are stepping back from BTC. This all influences the price of BTC as people reevaluate their investments. While Tesla’s decision is affecting the price of BTC in the short term, is it most definitely temporary.
The Foreseeable Future
Despite the decline in the price of BTC, there is a strong pull towards crypto in our new markets. People who once had a fear of missing out on the rise of crypto will have a new chance to ride crypto to new heights. Banks across the world are sprinting towards the crypto service, offering customers the ability to buy crypto directly through the bank. In the next one to two years banks across the world will offer crypto services directly through their banks at low to no commission. This service will surely spark new investment and excitement around the prospect of crypto once again and hype the price of BTC up to new levels.
The Diminishing Hype
The hype centered around BTC for the last several months is beginning to diminish, deflating the price of BTC to previous levels. While the hype that brought BTC up is diminishing, it also brought many meaningful investments that were not included in the price previously. With this influx of meaningful investments that will stay in the markets for years to come, the price will find a higher support level, protecting BTC from falling too far. Along with the large amounts of hype of 2020, millions of people began using their spare income to begin mining BTC. With the production of improved graphic cards, people across the world have begun producing BTC in their homes. With so many people mining BTC consistently, there will be more and more people looking to use and exchange it, driving its relevance up once again.
The End Result
With the decline of the crypto market in the short term, investors should look at the deflated price of BTC as a discounted entry point. Instead of seeing the drop as a warning sign of a crash, investors could easily take advantage of the great discount provided by the low prices currently displayed by BTC. Buying BTC while its price levels are low could present a great opportunity to ride the currency back up to new heights. Investors that once had a fear of missing out on the rise of crypto have a new chance to take advantage of the lowered crypto market.