On May 19, Bitcoin experienced a historic drop. The famous virtual currency lost half of its value compared to its highest level: $64,869 on April 14, 2021. At the beginning of June, Bitcoin experienced a rebound. Is it the right time to invest?
Highly Volatile Cryptocurrencies
Cryptocurrencies are highly volatile. Recently, on June 1, Bitcoin saw an uptick, reaching $36,300 (€30,000). Recent fluctuations in cryptocurrencies are linked to social media statements by Elon Musk. The drop in Bitcoin followed a tweet from the Tesla CEO and also China’s stance on it. On the Cryptonaute website, one can easily track the latest cryptocurrency news. The big question many are asking is whether this moment is favorable for investing in cryptocurrencies.
A Temporary Decline?
The decline in Bitcoin can be seen as a classic trend that precedes future growth. It can be hypothesized that the rise of Bitcoin will once again be on the agenda. First, one can assume that Bitcoin’s price will experience several short-term fluctuations. By analyzing its value evolution, one might think that the cryptocurrency is in a bullish phase.
Its value is gradually growing over time. Thus, many investors anticipate a rebound in the coming months. Investing in Bitcoin is therefore an interesting option. Several experts in this field believe the virtual currency could reach $40,000, or even more by the end of 2021.
Moreover, Bitcoin has always shown fluctuations during a bullish cycle. A correction phase is therefore logical. According to some specialists’ forecasts, the price of this digital currency could approach $100,000.
A Downturn That is Not Concerning
For many experts, the recent downturn is not concerning. According to Jonathan Herscovici, CEO of StackInsat, this correction was predictable. Bitcoin was in continuous growth. This currency was around $10,000 a year ago. Thus, the increase is expected to continue, especially as American banks are increasingly interested in Bitcoin. The number of companies accepting them keeps growing. This is a strong signal for investors and individuals alike who are rushing to invest to take advantage of its opportunities.
