Record Broken by Bitcoin After Lockdown

The bitcoin market has gone through a roller coaster ride in the last few years. Once it has earned a bad reputation in the market because people from criminal backgrounds used to trade using cryptocurrencies.

Besides, the bitcoin code official website says that the lockdown also had its effect on the crypto market. However, Bitcoin has broken all the records in February 2021.

Not only has it regained its popularity among eminent individuals as well as corporates, but it has also become less volatile in comparison to last year’s market price. Believe it or not, the market price reached a new high – more than $50,000 and that too just within 72 hours. 

Individual investors started showing more interest and investment around the middle of December last year. In addition, Bitcoin is now more easily available to a wider range of people as it can now be bought in fractions instead of buying a whole. Even companies like PayPal and others are now allowing their users to invest and transact in Bitcoins.

However, Bitcoin is still for high-end investors as even a fraction of a whole Bitcoin can cause huge losses if not invested carefully or if the market becomes volatile yet again. 

Price correction of Bitcoin:

According to many experts, there is a chance that Bitcoin price correction will take place. As per an article posted no longer it takes to correct the pricing of Bitcoin, the more Bitcoin will attract investors who are eager to make some profit while the price is breaking all the previous records.

At the same time, pro investors will keep looking for the signs of weaknesses before the market can crash again, especially in the current financial situation after COVID-19. 

Also Read: The Recent Fall Of Bitcoin And Cryptocurrency

Stirring memories:

During the rally that had taken place in 2017, Bitcoin had witnessed a similar surge, after which it crashed quite badly. The investors faced huge losses and it was an immediate setback for the cryptocurrency market. 

However, experts write that this year’s financial growth does not come to revive the wound of 2017. On the contrary, it shows that a significant number of people are being interested in Bitcoins.

Individual investors, corporate entities, and even online payment platforms are recognizing this digital currency and are becoming more open to its usage. 

A bullish market for cryptos:

According to the Chief Technology Officer of Bitfinex – the cryptocurrency exchange, Paolo Ardoino, the crypto market has never been more aggressive and assertive in the past.

The CTO thinks that the future is bright for all who have been investing in cryptos for so many years as well as for those who have just started out. While the US Dollar is at its lowest since the last quarter of 2018, cryptocurrencies have been claimed by it to be a protection of inflation. 

Even though some people think that both Bitcoin and gold have more to offer, experts are not really sure about that. The recent incidents happening in the states show that the government has been covering up debts that the banks have been approving through the backdoor. However, some people counter this idea as they argue that neither gold nor Bitcoin yields cash flow.  

Also Read: What is the Best Cryptocurrency to Invest in 2020?

Bitcoin termed as a financial asset:

Paul Tudor and Stanley Druckenmiller are the hedge managers who have claimed that Bitcoin can now be treated as a financial asset. With the new high that the crypto has reached, the managers said that the market is moving towards becoming less unstable and more constant.

According to Druckenmiller, millennials as well as the investors with west coast money are becoming more interested in investing in cryptocurrency because of the value it is offering. 

The contrary idea also persists among experts. Nouriel Roubini, a renowned professor of economics says that the boom in the crypto market is just a bubble and it will soon burst as it did earlier.

According to Roubini, the intrinsic value of Bitcoin, or any other cryptocurrency for that matter, is zero. As a result, none of these digital currencies have any fundamental value. 

No matter what the experts say, the crypto lenders are quite happy with the surge in the market. Many lenders have claimed that the momentum Bitcoin has created recently is impossible to ignore.

People can be either annoyed or excited with the record broken by Bitcoin, but it can be assumed that the train of success has left the station.