Recently the cryptocurrency dip made investors lose billions of dollars. Is this normal? We would say it is. There are always ups and downs in everything, stock markets, crypto markets, even estates. Many financial advisors will say buy low and sell high, that’s how we capitalize the gains. However, we may ask when the lowest point (well, we wanted to get the biggest gains don’t we)?
The recent dip of Bitcoin (BTC) to $59,000 is due to President Biden’s $1.2 trillion infrastructure bill that will affect taxation on crypto investors. But is this the only factor? We have Elon’s negative remarks and China’s clampdown on cryptocurrency too. You can dive deeper in this Time’s article on President Biden’s bill.
Bitcoin’s (BTC) and Ethereum (ETH) highest point… so far.
On November 8th, BTC and ETH hit their peak at $68,000 and $4,800 respectively. The bullish performance brought these major tokens to a new level. The cause of these price hikes is said to be related to BTC’s ETFs that was approved by the SEC a month ago. Investors are looking at new fresh funds fuelling the growth of the crypto market. While on Ethereum, everything is looking at how DeFI (Decentralized Finance) is pushing the use of Ethereum which also drives the prices of gas fees to all time high. You can understand more about DeFI in our earlier articles here.
The mystic and Bitcoin (BTC)
If you have not heard about the Indian boy with skills of foretelling the future, Abhigya Anand, he predicted the price of Bitcoin will hit its peak between October and November, and it did. You can read more about his predictions here. He also predicted that crypto currency will face a market correction on November 21st and advises not to put everything on crypto. What would you believe?
The causes of dips and rises
Throughout the years, we noticed the causes of dips and rises are due to the following factors.
- Buy and sell by whales (we talked about what whales are in one of our topics).
- People will influence creating market sentiments such as Elon Musk.
- Endorsements by artists or groups such as Matt Damon and sports teams.
- Government regulations such as in Russia, El Salvador, Nigeria, India etc.
- SEC’s decision such as the recent Bitcoin ETFs such as Greyscale and ARK.
The thing about crypto is, anything can affect the rates of the token, from new products to network improvements and all the above mentioned. It is very different from traditional investment products such as the commodities and stock market. We continue to advise users to take precautions in making decisions in buying and selling. On the other hand, users also have to pay attention to scams and frauds in the market. Trust no one… but yourself (or your inner circle)!
Note: this is not a piece of financial advice, readers who are keen to invest in Bitcoins or any tokens should be responsible for their own actions.
