After reaching a high of $50,000, bitcoin prices are going down, leaving many investors unsure of what’s coming next.
Many factors influence the rise and fall of bitcoin values, from the market to the state of the economy and how much advertising is spreading across social media.
Whether you’re new to the world of cryptocurrency or a well-seasoned investor deciding what your next steps should be, the decrease in value has an impact on your assets.
What does this mean for you? Where will it go from here? Take a look at some reasons why bitcoin prices are down and what you should be on the lookout for in the coming weeks.
Bitcoin Prices Are Down…
The recent decrease in value of Bitcoin comes after it hit $50k in the past week. By the following Wednesday morning, it had already dropped by 3%, leaving investors unsure of where it would go from there.
A huge factor in decreasing bitcoin prices at any given time is whether it’s received negative press or if unsavoury stories about bitcoin have been circulating through the online space. Anything that instils fear or uncertainty in the wider audience will result in a lower value.
Something as simple as less trading can also result in a lower value. It all depends on the market and how many people are interested in buying and trading at any given time.
At a time when the economy is still recovering from the economic and social lockdowns brought on by the Covid pandemic, and so much uncertainty remains due to the virus variants, it’s not entirely unexpected to see lower bitcoin values.
Does That Mean I Should Buy Now?
Even though the value is a little lower than it’s been, that’s not a sure-fire sign you should start investing. It takes time and works to follow recent trends and determine the best time to buy.
While there’s no set way to know when to get in on cryptocurrency or to increase your assets, this useful guide from Cove Markets has some great tips to consider before making a decision.
Consider your goals before investing your money in bitcoin. For some people, depending on the current market, bitcoin is more of a short-term investment. For others, it’s better to be in it for the long haul to see a payoff.
You should also take into account if you are ready to take the risk. Because prices swing much more dramatically than other types of investments, bitcoin isn’t for the faint of heart. It can be scary to watch your money disappear without the guarantee that it’ll go up again for a while!
It all depends on your financial standpoint and how risky you’re willing to get.
Bitcoin Comes With Risks.
As with any type of investment, bitcoin comes with significant risks. The biggest concern for many bitcoin investors is how heavily it relies on technology.
Technology is beneficial in many ways, but it opens the door for dealing with some added stress of potential security breaches.
As with most investment types, hackers and online scams put your assets at risk. If you aren’t careful about where you hold your money, there is the potential it will be drained from your wallet.
Another major risk when investing in bitcoin is the potential for other cryptocurrencies to have a higher value eventually. You never know how each will play out, and it can be disheartening to watch the one you didn’t invest in do better than your own.
Everything in life comes with risks, but it’s scary when your hard-earned cash is involved. As we’re seeing with the decrease in value of bitcoin, drops happen frequently, but it isn’t a reason to back out altogether.
Is It Worth It?
Despite the risks, investing in bitcoin can pay off. As long as you are willing to stay in it for a while, you may see huge increases in the value of your bitcoin assets.
As the cryptocurrency business continues to grow, so will the value of your holdings. More positive marketing and better online exposure are beginning to make a big difference in how the public perceives bitcoin and other cryptocurrencies.
Not only is the business starting to boom, but executives in the space have been fighting for more crypto-centric language to be present in legislation. While this may lead to more regulation in this asset market, it will also allow for more safety and security in your investments.
Compared to decisions on other financial investments, investing in cryptocurrency is relatively new. People are still hesitant to take the plunge because it’s so modern and far from the traditional means of investment, but as more positive information comes out, more people are getting on board.
Cashing Out Your Investment
In a time full of turmoil and uncertainty, and after seeing prices rise and fall so quickly, many consumers don’t want to take too big of a risk. They are opting to withdraw their investments for cash rather than keeping it in their digital wallet.
Withdrawing your assets from the virtual space might seem confusing, but there are crypto ATMs that make the process a lot simpler. Not only can you buy bitcoin through these machines that are located in secure locations across the country, but you can sell existing assets for cash.
Easily track your deposits and withdrawals from the connected app to keep tabs on your account. With prices going down, now might be the time to take out your money before it sinks even lower.
Of course, there’s no way to tell if it will shoot back up in the next few weeks or even days. It’s all up to the state of the economy and just how much positive exposure bitcoin and other cryptocurrencies are getting.
If you’re invested in bitcoin and felt a little nervous seeing the prices sink so much in such a short time, we understand. But we’re here to tell you that this is normal, and you have options when it comes to the best next steps.
Whether you choose to stick it out and see where it goes or withdraw it from a crypto ATM, the decision is ultimately up to you and your finances.