Cryptocurrencies have captivated the crowds for quite some time now, bringing users a new and exciting way to gain financial control. However, recently there has been a rapid decline in the Bitcoin price as well as other cryptos.
With people’s finances tied up in the new digital way of finance, it’s somewhat nerve-wracking when the Bitcoin price drops, but if you are new to the game, or if you have been around for some time, you will quickly learn that cryptocurrencies have a life of their own.
Based on the past patterns of the digital phenomenon, it’s clear that before huge growth, the price drops, bringing about a massive surge in the value of Bitcoin. So to help you make the best moves going forward, keep reading time to find out about the life cycle of Bitcoin and the future of the cryptocurrency scene.
Bitcoin is a new age phenomenon that brings about a whole new way of financial gain and control. One of the new concepts that come along with Bitcoin is the regular occurrence of the Bitcoin bull run.
Every four years, the bull run occurs, which is seen as the peak of the Bitcoin cycle. The Bull run will take place after every 210,000 blocks have been mined. This event aims to halve the inflation rate by halving the block reward the miners will gain.
As we speak, Bitcoin is currently experiencing its third bull run. However, the highly regarded cryptocurrency started halving in May of 2021 and is still in the process.
If you are a regular in the world of investment, you will know the terms bull and bear markets. These terms are used to describe the condition of the market. In addition, these terms will refer to the overall performance of the market.
Having a basic command over how the market works will help the results of your investment drastically. By understanding in which direction the market is going gives the investor a way better understanding of where to place their funds, how much to invest, and of course, what crypto you should invest in.
A bull market is the most favored market state because it’s a period in the crypto cycle when the Bitcoin price increases steadily and continuously. To ensure you are technically in a bull run, Bitcoin enthusiasts will have to assess the market. Once the Bitcoin price has risen by 20% after a steady 20% decline, the market is in the state of “bull.”
When the market is in a “bull” state, the expected behavior of those investments is to increase their hold on the market by buying more Bitcoin, holding what they have, and lastly, retracement, to give them the opportunity to make a profit off the bull run.
Before we move on, the opposite state of the “bull” market is the “bear” market. This is when the market has shown a steady decline. Thus, giving investors the indicators that it’s time to make moves with their investments.
In the past, Bitcoins price has always been volatile, along with all the other cryptocurrency options. But with the most recent bull run, Bitcoins prices have fluctuated dramatically, giving investors the idea that things may differ this time.
During the bull run that occurred in 2017, the Bitcoin price hit a record high of the value of $20,000, but that Bitcoin price was nothing in comparison to the record high that came about in late 2020 when Bitcoin hit a value of $63,729.5.
That high didn’t last as long as investors would have liked, and recently the Bitcoin price has seen a decrease of more than 20%. According to industry experts, 2021 will be a big year for cryptocurrencies, bringing about inflated Bitcoin prices and many other advantages.
Bitcoin has shown its power, time and time again. With such exponential potential, Bitcoin has shown some promising results. According to the industry experts and crypto, analysts suggest that Bitcoins price, in the long run, could equate to the value of $100,000 per BTC in the near future.
Cryptocurrency is a promising investment for all, but if you are looking to get the most out of the experience, make sure to do your research and find a fit. The leading cryptocurrency has been Bitcoin for quite some time, and with the Bitcoin price regularly spiking, it’s easy to increase your hold on your financial freedom. To make sure you state your claim, be sure to join the crypto community as soon as your finances deem fit and enjoy the thrills of a decentralized future.
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