Good time for Bitcoin?
Bitcoin surprises us every year, with rapid price changes and market fluctuations. Apparently, the bear market has come back again, and the leading cryptocurrency is losing ground. But is there any reason to actually be worried?
A year ago, the whole cryptocurrency industry was carefully watching the changing situation. BuyCoinNow also paid attention to it, in a short guide to bear market trading. Today, the history repeats itself and once again traders follow the price charts with increased interest. The real question is: how to use this downward trend in your favor?
We can only guess why Bitcoin has begun to lose its value again. After a weak beginning of 2019, the cryptocurrency market gradually recovered from the crisis, and almost reached the price of $10,000 during the last summer. However, this trend didn't last long, and the value is falling down again. What's the cause?
Bitcoin's changing situation may be related to the regulatory dispute that is currently being held by the national authorities around the world. Many governments have begun to recognise the need to define the legal nature of the digital assets. This finally led to a tightening of the regulations for crypto entrepreneurs, and in consequence scared the investors.
The other possible reason is associated with the shift in China’s policy towards the blockchain. President Xi Jinping has recently announced that the country will adapt this technology. This decision evoked enthusiasm at first, but when it turned out that the cryptocurrency support wasn’t included in the new policy, the price fallen down once again.
Rise and fall
Regardless of what actually caused the current trend, it is more important to know how to adapt to it. Some traders may consider the current market state as a disaster. And we can’t blame them - since the price of Bitcoin is falling down, how can we see any bright side here? However, in order to interpret the situation correctly, we should look at it from a wider perspective.
The nature of cryptocurrency market (and other speculative markets as well) is variable, and considerable price fluctuations are inevitable. That’s why a wise investor shouldn’t despair about value decrease, but try to use it to their own benefit. Lower price is an excellent moment to invest in Bitcoin, since the asset will soon regain its value, just as it did many times before.
But some may ask: “Why can we be so sure that Bitcoin will recover the loss?” To answer this question, we should take into consideration a leading position of this cryptocurrency. Seasonal fluctuations, which would surely eliminate lesser known altcoins, are no match for superior market capitalization of Satoshi's coin.
The other important factor is Bitcoin’s community. A considerable part of investors will hold (or, as they use to say, “hodl”) assets no matter how bad the situation may turn out to be. Some of them do so because of the faith in incoming bull market,others simply because they are attached to their favourite coin.
But no matter what causes people to stay with Bitcoin in hard times, dedicated investors always make it to eventually recover after the bear market period. The question is: will you use this lucrative situation for your own benefit? After all, we can’t be sure when the next bear market will come. As you can see, it is the best time to invest - and BuyCoinNow is a perfect place to do so.