Last Updated on February 1, 2021 by Ope Quadri
Bitcoin worth $6,936.75 at the time of compiling this report (08:30), the price crash cuts across all the cryptocurrencies.
A friend asked, “Will bitcoin continue to fall?”
Trading in cryptocurrency is purely a speculative business, which made it difficult for anyone to precisely say what the price will be in the next one hour.
Total market capitalisation according to coinmarketcap.com was $262.91Billion with more than 14% fall.
Even though it may be tasking to appropriately say bitcoin value, the digital coin is notorious for rising and falling heavily, if we put its dominance in the cryptocurrency world into consideration
One thing that we may say at this time is that the continued fall in price may bring about panic sell, which is likely to have significant effect on the value even more.
Imagine an investor who bough some fractions of bitcoin December 2017, when the price was between $18,000 and $19,000 hoping value skyrocket in 2018?
Though it temporarily maintained the $17,900USD in 2017 but the most valuable cryptocurrency experienced more crash in 2018, making the predictions of some bitcoin enthusiasts mirage of some sorts to some short term investors.
It was predicted that bitcoin is likely to reach $50,000 but “it will experience a heavy fall in value before it begins to pick.”
Bitcoin first price ever was $0.003 in March 2010 when now defunct bitcoinmarket.com exchange became the first in bitcoin trading.
By July 2010, bitcoin reached $0.08, and reached $1 for the first time in April, 2011, making btc critics tag it a bubble when it jumped to $31 by July 8, 2011, unfortunately by December the same year, it crashed to $2, before it started picking by 2012.
Even with the rise it found it difficult to reach $31. Its highest till the end of 2012 was $13.
Those who were patient gained more from its value in 2013 as it was growing by 5-10% daily in April 2013, reaching $266 in April 11,2013.
It was above $1k before the end of 2013. Fast forward, it was floating between $200-$300 by March 2015.
It entered 2017 with $800-$1,150, and began to rise consistently by May, 2017, reaching $5,000 value by September, 2017, but fell back to $2,900 in September 12, and by October jumped to $5,600 till it reached $17,900USD December 15, 2017.
What about other cryptocurrencies?
Bitcoin has always been the driving force behind other cryptocurrencies, when bitcoin falls other coins are affected.
The reason is simple: bitcoin has more acceptance than the rest of them.
It would be recalled that ethereum was heading towards $2k when bitcoin was at its best, but ETH was $398.99 at this time.
Ripple that is seen as banking sectors’ favourite because of its technology was $0.511, while bitcoin cash (BCH) was $704.30.
Litecoin is falling more as well staying at $119.08; monero was $174.23; dash was $317.82, while bitcoin gold (BTG) was $44.79.
The bottom line is when bitcoin increases in value other cryptocurrencies benefit from such, making investors in other coins keep their eyes on the value of bitcoin.
Emergence of other digital coins
The breakthrough of bitcoin has led to the emergence of hundreds of other altcoins, launched into the market through Initial Coin Offerings (ICOs).
ICOs adverts had taken over Facebook and Google ads before both the social media and tech giants announced banning of cryptocurrency-related ads on their platforms.
This month (March) microblogging platform twitter also followed the steps of Facebook and the big G to restrict crypto-related ads.
All the above giants gave fraudulent ads for banning cryptocurrency ads, “aimed at protecting the interests of investors”
Analysts say bitcoin, ethereum, litecoin and a few others do not need ads to operate, and that has been proven right.
But other emerging coins will have a tough time gaining market popularity.
Bitcoin may fall more, no thanks to panic sell going on here and there, but it won’t be a bad idea buying and keeping bitcoin at this time.
Cryptocurrency trading, Commodities and CFD’s traded on margin carry a high degree of risk. As such they may not be suitable for all investors.
Investors should ensure they fully understand the risks associated with bitcoin and cryptocurrency trading and leveraged financial trading before deciding to trade because you can lose some or all invested capital.
Investors may choose to seek independent advice and should not risk more than they are prepared to lose.