Zephyrnet Logo

Bitcoin Rapid Wealth, or the Mega Bull Market Under the Disguise of the big Plunge

Date:

Sajjad Hussain
Photo by Alexander Mils on Unsplash

The current Bitcoin plunge is massively blamed on Musk mouth words

  1. He has assured crypto lovers of the massive wastage of energy resources by Bitcoin mining
  2. He has announced the closure of Bitcoin to buy Tesla
  3. Tesla will sell Bitcoin holdings

After these three steps, Bitcoin plunges to $30,000, Musk destroyed the market confidence once he was the Godfather then become the evil factor of the crypto world, When Tesla bought Bitcoin, the value of Bitcoin at the time of purchase was 1.5 billion U.S. dollars, When Bitcoin touches the highest point these holdings valued at 2.48 billion U.S. dollars but now these holdings worth of 1.26 billion U.S. dollars.

Do you know that in the first quarter of 2018 when Bitcoin dropped from US$14,000 to US$7,050, many investors achieved returns from that plunge too?

Bitcoin’s increased price difference between 2020 and 2021 is 200%, and due to the adoption of Bitcoin as a virtual payment by institutional investors and multiple hedge funds approach to escape from inflation, the crypto market surpasses the expectations. Capital always seeks profit, whatever happened to the crypto market the central idea of making fortune deeply integrated with investment opportunities.

But the question is who will pay the price of such a plunge, the answer is simple many new entrants because they don’t know the technology behind the blockchain, regardless of technical difficulties, new entrants consider Bitcoin is profitable, never thought and understand the industry in depth.

After the start of the crash, these new entrants become short-term traders however most of them are disciplined and rigorous traders but they always behave according to sentiment, in relation to panic the rapid sell becomes the standard approach. As a crypto investor one should memorize Warren Buffett’s quote “When others are greedy, you have to be fearful. When others are afraid, you have to be greedy”.

The rise of crypto assets and especially Bitcoin depends only on one factor, that is very important in the economy, devaluation or inflation, due to the limited supply, Bitcoin regarded as the digital gold and contains the properties of anti-inflation, this claim has been accepted by people, institutions and hedge funds. The current market downturn never reverts this claim, in the future Bitcoin also has a strong correlation with the countermeasure against the devaluation of legal currency and the depreciation of bills.

The Fed’s interest rate hike led to the decline in the crypto market, global commodity markets, and European and American stock markets, the upcoming crypto market supervision, and regulation also turn the current Bitcoin bull market into a bear market, investors believe that when after this plunge stabilizes the next round of the mega bull market start again.

Many investors showing hope for this plunge that the current fall even becomes the hard fall because this fall gives them an opportunity to get the ride on Bitcoin with the lowest price possible.

Bitcoin is the global currency if you look towards India you will find that India suddenly abolished 86% of the banknotes under the banner of anti-corruption, Venezuela followed India, British economy faces huge uncertainty due to Brexit, But Bitcoin due to its limited quantity, convenience in transactions, and decentralized in nature become a perfect tool for preservation, appreciation and risk aversion.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/cryptocurrencies-ups-and-down/bitcoin-rapid-wealth-or-the-mega-bull-market-under-the-disguise-of-the-big-plunge-fe394aba3bc6?source=rss——-8—————–cryptocurrency

spot_img

Latest Intelligence

spot_img