Bitcoin’s price has dropped below $20,000, and early Monday morning, it hit a low of about $18,255 after falling more than 7%. It has been shown that changes in the stock market significantly affect how much bitcoin costs. If stock markets keep going down, Bitcoin’s price will likely go down.
Analysts’ predictions of how much Bitcoin will be worth in the future
A crypto analyst at Rekt Capital thinks that Bitcoin’s price will probably keep decreasing over the next few weeks. This is what his tweet said:
Most of the time, the bottom of a Bitcoin bear market doesn’t happen until many months after a new macro rally begins. Just a few weeks ago, the price of BTC was where it is now. Based on what has happened in the past, it is too soon to think that the macro trend will change significantly.
When asked when he thinks Bitcoin will hit rock bottom, Rekt said he thinks it will be in the fourth quarter of this year. The analyst’s prediction was based on how prices have changed in the past in response to the Bitcoin halving, which happens every four years and cuts in half the number of new Bitcoins (or mining incentives per block) that can be made as the total number of Bitcoins that can be mined goes down.
The last halving happened in 2020 when miners got 6.25 Bitcoins instead of 12.5 Bitcoins. When the next halving happens in 2024, the price is expected to go down even more, to 3.125 Bitcoins.
So far in 2018, it hasn’t been easy for people who have put money into cryptocurrencies. The total value of these digital assets on the world market has dropped below $1 trillion, and the value of almost every coin has dropped by more than 50% from its all-time high. At the moment, it does not look like the bear market will end soon.
When Terra (LUNA) ran into trouble a month ago, investors’ hopes and dreams took their first big hit. But problems at some of the biggest crypto lenders, exchanges, and companies are making people worry that an even worse market crash could happen soon.
If you haven’t bought cryptocurrency yet, you might want to wait until now. People who have already invested in cryptocurrency have been given several options by experts in the field.
People are likely to keep selling if the market isn’t stable. Spot trading is something that experts in the field say individual investors should avoid for now.
Save for better times
The best plan for investors is one with less risk. Johnny Lyu, the CEO of the cryptocurrency exchange KuCoin, says that investors should also be aware of sales at a discount. Johnny Lyu noticed this because short-term market rises could signify that a bigger drop is coming soon.
Investors need to stop doing what they’ve been doing and look for new ways to make money. Investors should always be on the lookout for ways they can make a lot of money if the market improves.
You should never invest more money than you have in the market.
Cryptocurrency is a risky bet that could pay off big. You shouldn’t spend more money than you can afford to lose because of this. People should only invest money they can afford to lose and wait for the market to go through its stages before making any decisions.
One of the cycles in the cryptocurrency markets is called “crypto winter.” No one should be scared because this is neither strange nor new. “Yes, we are having a crypto winter right now, but it’s not nearly as bad as some people are making it sound.” Jeetu Kataria, the CEO of DIFX, a Croatian platform for trading cryptocurrencies, said, “This is pretty much what we thought would happen.” “More and more people are using, so laws are being made to deal with the problem.”
Still, some experts in the field think that the crypto winter could be good for the industry as a whole, especially in India.