Is Bitcoin Market Price Going Down: Is it time to cash it?

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Bitcoin Market Price:-

The bitcoin market Price over the years can be likened to Climate Change.

It is simply unpredictable since it keeps oscillating. Bitcoin’s future trend is one that is highly volatile.

In relation, the strongest Cryptocurrency in the world significantly dropped, ripping off the Crypto market an amount averaging 31 trillion in its wake. The dive killed the expectations that the digital currency set a new record high before the close of the year. Bitcoin is on the rise again with USD 49051 worth as per December 16 2021, 6:01 AM ET.

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As the rise and fall become more frequent and intense, it confirms that bitcoin does not follow a come-around-go-around trend. In October this year, bitcoin drooped intensely before breaking the roof to hit a record high of US$66893.22. Investor psychology can be used to explain the trend in digital currency.

On a normal day, bitcoin investors use a fall in bitcoin worth as a go-ahead to purchase, due to low prices at this time. The investors then wait to reach highs to sell off their accumulated assets; creating a loop of buying and selling.

Federal Reserve supports bitcoin

Bitcoin has proven that every asset is affected by the macro environment. Major Cryptocurrencies shot up Wednesday following the Federal Reserve System statement that it would fasten the tapering of bond purchases with the programme targeted to end in March and fixed to a total of three hikes on the interest rate benchmark by next year

Analysts inform that the largest cryptocurrency could form a head and shoulders pattern which would follow a bearish development.

Focusing on the bitcoin future sustainability, an argument arises that bitcoin uses a lot of electric power.  A recent study conducted by Cambridge University reveals that the mining of bitcoin consumes more electricity than the whole of Argentina in a year.

Bitcoin’s versatility is yet to be confirmed. It appears to be a slower, more cost-ineffective, and more polluting system of reconciling a problem that already had existing solutions. Bitcoin processes seven transactions every second with Visa and MasterCard processing 1700 and 5000 transactions respectively.

Read: Tanzania going round in circles over cryptocurrency adoption

There are also other Stock exchange markets that can service eighty transactions every second. This brings the question of whether it is necessary to shift from banking and money transactions to cryptocurrency.

Managing director of Canaan Capital, Mwanyasi says that nothing experiences an upward pick forever and that bitcoin’s weaknesses are now coming to light. He argues that there exists no mainstream asset that experiences a 15 percent drop in a day, saying that bitcoin is only but a hypothetical investment.

Unrest can be seen in the digital currency market as some investors had earlier awaited a rally from the larger cryptocurrencies as the Federal Reserve becomes less aggressive than expected in the market.

Photo/Bloomberg

Elon Musk and Jeff Bezos rival bitcoin

The reliability of bitcoin is also in question because of the decamping created by individual influencers in the Crypto market. Tesla billionaire, Elon Musk, has held the hand of a bitcoin rival Dogecoin (DOGE) to become a top cryptocurrency this year, declaring that he prefers Dogecoin over Ethereum, bitcoin and other digital currencies.

Speaking to Times Magazine after they named him Person of the Year 2021, Musk claimed that dogecoin was a better transactions avenue than bitcoin and has a higher potential in comparison to the same.

There have also been rising speculations that Jeff Bezos might have already invested in Dogecoin.

Read: Is Bitcoin poor Africans’ alternative reserve currency?

I am a journalist who is an enthusiastic tech, business and investment news writer from across Africa. There is always something good happening in Africa but most gets lost in the stereotypes. I tell the stories that matter to the Africans for Africa. Have a tip? You can contact me at j.kangethe@theexchange.africa

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