The Bitcoin Momentum in 2021
The once-booming cryptocurrency, Bitcoin, now seems to be in a spot of trouble as many investors are no longer keen to buy-in. The current state of the economy worldwide is forcing traders to look elsewhere for investments that yield quicker dividends. The reality that people are currently experiencing difficulty in have long-term investments, that take years or even months to show profit, is what has lead to this slump. Bitcoin has dropped in price by 8.4%, which means that it traded just below $34 000. As is normal with trading, the market is very fickle and could either result in huge gains or losses at any time. This is exactly where Bitcoin is at present.
Market analysts have been speculating that if Bitcoin does not reach the required $40 000 level which is the minimum it needs to be able to benefit from any new money from current investors soon, that traders will opt to move their investments elsewhere. The volatility of the market has encouraged most cryptocurrency traders to seek alternate coins, especially concerning Bitcoin’s recent slump. If the cryptocurrency does not recover and reach the $41 5000 mark soon, it may have to deal with another collapse, which it can ill-afford at this juncture. The situation presently has made Wall Street fund managers fearful of assisting because of the threat of collapse.
If the opinion of veteran financial advisor, Neil Liversidge, is taken into account then Bitcoin could be a thing of the past. He is reported to have said that cryptocurrencies, such as Bitcoin specifically,are a bad influence on society and he believes that these cryptos are often used to promote illegal activities. On the other hand, the bulls stepped in and bought the dip, allowing BTC to recover. The prediction after this action, is that the crypto will not only recover but that it will reach the $48,665.90 and result in BTC coming back with a bang once again.
Due to all the controversy around cryptocurrencies and with some financial advisors speaking for it, others think that the world's markets would be better off without them. With that in mind, it becomes clear why China's coin e-Yuan crypto, is attracting so much positive attention. Many investors globally are all jumping on the bandwagon and are keen to trade on this platform. The prediction is that the chinese e-yuan will soon be as valuable as BTC. What further supports this forecast, is the fact that the currency will be decentralized. The technological innovation that China has embarked on, will ensure a future where the country’s government will be able to track any transaction as well as control who sells the cryptocurrency. For now, only banks that have been authorized to do so will be able to sell the coin.
Despite the uncertainty that surrounds how these coins are bought and sold, with some believing that cryptocurrencies have no value and harm society as a whole, it seems as though it is here to stay.
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