Bitcoin, over the days, has shown its ability to maintain itself even when the economy is not the most favorable.
The decisions that have recently been made at a financial and economic level may affect the valuation of these crypto assets. Still, we must also be aware that digital currencies have their cycles, which are not changed by the most influential economic factors. To learn more about Bitcoin visit: bitcode-prime.de
Financial markets usually make their movements spontaneously unless some activity or external factor arises that modify them. In the case of cryptocurrencies, it can be said that they are affected by external factors that traditionally affect the financial market. Still, two aspects also cause it to change: international regulations and social networks.
Is an Uptrend or downtrend correction?
Bitcoin has recently been seen going up and down. However, it has been more time in the bearish phase than in the bullish phase; for many, the wait for a new stage change is the future of the following months for this digital currency. The announcements of economic measures by the United States, a war in progress, and the continuous intentions to regulate digital assets mean that their value continues to fluctuate uncontrollably. We may be in the presence of a new trend that, according to many experts, is forecast or what comes next year, but the steps to reach new all-time highs are tiny steps.
There has been much turbulence that has allowed the modification of the prices of Bitcoin and the rest of the digital currencies. Therefore, the most accurate conclusion is that the fluctuations of this digital market follow the global market trends. The trust of users is the main element that cryptocurrencies have in their favor. In bearish situations like Bitcoin has been going through, users usually protect their digital currencies while waiting for new trends.
Trading in a downward trend is not recommended for its users since it generates significant losses; the best thing to do is acquire more coins and wait for the market direction to change.
For many, the bearish phase of Bitcoin represents a corrective stage that possibly leads to a rise expected many. Still, there may also be a break in the trajectory, reach a maximum of no more than $34,000 and fall again.
Aspects to consider about Bitcoin
The leading digital currency among users and exchange platforms is being harshly criticized after the constant drops it has had at its price. Comparisons with the traditional financial market continue to surface. Still, there are relevant aspects that we must keep clear when it comes to investing in cryptocurrencies.
Digital currencies usually move at a price due to supply and demand. However, the imperative need of financial and government entities to regulate them have also caused them to modify their price. Bitcoin is a currency with a particular feature that has made it extremely attractive. That is its ability to be decentralized.
So far this year, many have joined the idea of adopting digital currencies as financial tools for marketing, investment, and exchange. To the point that the issue of regulating cryptographic operations is increasingly positioned, such as in the case of Russia and Ukraine, both nations have managed to stay thanks financially to the operability of these currencies, making it clear that the digital age is the future of finance.
Thailand, India, and the United Kingdom are the leading countries that have managed cryptocurrencies from various fields. It is why their influence on the variation in the price of Bitcoin and other digital currencies is significant, but its impact is greater on China and the United States. The digital market is not exempt from changes due to the effects of the traditional financial market; there are even movements of digital currencies that relatively affect the actions of the conventional market.
Bitcoin is going through a new phase in which we must be very alert to the possible dramatic variations that it may have. In a matter of hours, its price can vary and mark a period of profit or loss for users.
That is why the increases you are experiencing these days can have a double impact; the exciting thing is to make decisions at the right time so as not to have to manage emotions later in obtaining losses.