So you want to become a professional bitcoin trader and make millions overnight through bitcoin trading, you need to brace yourself just like the Raiders has been on 19 May 2021. It was a Wednesday, and we can consider it as a Black Wednesday for the bitcoin traders. The prices of bitcoin fell as much as 30%, and this percentile volume, when converted to dollars, would equal $30,000. Suppose you want to check the legitimacy of the data. In that case, you can visit trading bot as it provides you with a wide range of information associated with bitcoin and daily updates with proven sources. It is not just bitcoin that experienced a drop in its prices, but Ethereum also had fallen by 40% and that in a period of fewer than 24 hours. Its breaking price has gone below $2000.
This has not been a new thing for cryptocurrency traders. However, it was one among the largest dip in its prices. Bitcoin experience the highest dip after 2018, and the same is the case with Ethereum. Huge cryptocurrency traders know that it is a run-up on the quality of bitcoin trading, and it will occur repeatedly. Different economists and cryptocurrency analysts give statements. One among them named Mati Greenspan, the portfolio manager and the founder of quantum economics, said that it will always be scary when such a massive retracement occurs. Such seasonal fall and rise in the prices of bitcoin are great opportunities for those who want to buy and sell in a short period, but the long-term investors in bitcoin or not bothered by such displacements in prices of bitcoin. Also, many experts told the media that it is nothing drastic to worry about, and the investors and traders must be used to this kind of displacements in prices of cryptocurrencies.
Many experts consider that bitcoin’s volatility has nothing to do with the current fall in its price, but it has to do with many things. On Wednesday, bitcoin prices experienced a dip because China government has cracked down the financial institutions in the country from accepting bitcoin as financial system payments. Also, Tesla decided to not accept bitcoins as a payment for their vehicles. It is believed that most of the fluctuations in the crypto market nowadays is happening because of the tweets made by Elon Musk. But, on the contrary, as bitcoin supply is limited, the investors have to face volatility. Also, there is no control of the central banks of different countries on bitcoins, making it very easy for the prices to fluctuate. It is one of the most important features of bitcoins, and the investors must be well aware of it before entering into that world of bitcoin trading.
The thing which makes bitcoin highly valuable is its scarcity. If you look at the data, there is 18.7 million bitcoins that are circulated all across the globe on different trading platforms, and the maximum threshold of bitcoin is still at 21 million. Have you noticed that the circulating bitcoins are reaching their maximum threshold? And this is one thing that is making its trading even more valuable for the investors. In the coming period, if bitcoin reached its highest price and also the maximum threshold, It is considered that bitcoin will be the most valuable cryptocurrency of all time. New bitcoins are also created, but they are given to the miners as a reward. This makes the supply of bitcoin completely inelastic, and the rising demand cannot be proportional to the price in its supply.
Bitcoin has been there for a very long period of time and is also popular for the last 30 years. Still, bitcoin is an asset class commodity that exists only in the virtual world. It always remains in its price discovery phase as its prices keep on fluctuating continuously. Bitcoin has its self been able to create a completely different form of value as it does not exist in the physical world but still is very valuable and can be exchanged for money of different nations. However, the terminal value of bitcoin is still identified by the experts. Such a huge information gap about the bitcoin is lending itself towards momentum and further leading to absent new information.