Will Bitcoin Go Back Up？

[TL; DR]

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Bitcoin, often referred to as BTC, is the most popular and prominent cryptocurrency globally.

There are more than 80 million Bitcoin users in the world.

BTC reached its highest ever price of $68,000 in November 2021.

Bitcoin's current price is about $42,500 today, a drop-off of almost 50% from its all-time highest price.

The decline in Bitcoin's value is due to a proposed crypto ban in some countries such as India and Russia, an outright ban in China, reports of a possible regulation of digital assets in the US, and a drop in their stock markets.

Some experts opine that due to the unstable nature of crypto, Bitcoin’s value is likely to keep falling and rising.

One of the most pre-eminent things in this new decade is the increased global interest in cryptocurrency, primarily Bitcoin. This is because it has opened people's eyes to a more unique and better way of conducting transactions.

Naturally, many people have adopted Bitcoin as their financial system due to its plethora of benefits, evidenced by the 70 million + users of Bitcoin worldwide.

For clarity's sake, let's do a quick overview of what Bitcoin is before proceeding to the other parts of this article.

Overview of Bitcoin

Since its launch in 2009, Bitcoin has been the most renowned cryptocurrency globally. It is the oldest and most valuable cryptocurrency worldwide and is a modern financial system.

Unlike fiat, it lacks a central authority and ownership, has easy accessibility to its owners, boasts tighter security, and can be easily used in any accepted location. However, since it is still relatively new, Bitcoin hasn't been entirely accepted globally by many countries. It is also highly susceptible to cyber hacks and price instability.

It has more than 70 million users, and according to reports from reputable sources, about 22% of the US adult population are holders.

Like every other crypto, Bitcoin is decentralized but scarce. It has only a maximum number in circulation, 21 million, which has contributed on no small scale to its price instability over time.

Bitcoin Price Fluctuation History

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Bitcoin has had a topsy-turvy price history. Due to many factors, its value has constantly altered since 2009.

Its first increase was in 2010 when the coin jumped from being a penny to close to being a dollar.

The following year, 2011, it rose from $1 to $29.60, but it receded to $2.05 by the year ending. The following year wasn't as fruitful, but things picked up in 2013. At some point, it hit $1,237.55 before reducing to $687.02 not too long afterward. Bitcoin coasted from 2014 through 2016, before reaching $900 at the end of the year.

Since 2017 when Bitcoin initially crossed the $1,000 mark, it has been on a steady ascent in its price, albeit with some fluctuations. In the same year, it went up to almost $20,000, and investors, analysts, and governments took more interest.

However, its value went down in the next two years but picked up in 2020. The COVID-19 pandemic made major economies tank, and this caused more people to switch to Bitcoin.

This increased its value to the point that by December 2020, its price had reached $29,000. This upward trend continued in 2021 when it increased to $40,000. Barely three months later, it hit a new all-time high of $63,000.

Bitcoin decreased by more than 50% by summertime in its true unstable fashion, when it reduced to $29,795. Its value wavered for a while before hitting a new all-time high of $67,549.14 in November. Barely a month after, it went down to $49,243.

Things didn't improve as we went into 2022. Bitcoin plummeted to $37,929 in the early stages of the year before steadily climbing back to the $42,500 mark it is currently at.

There is almost no surprise why Bitcoin's price is currently fluctuating with a trajectory like this. It began the year at the $30,000 mark, a far cry from the all-time high $67,000 it hit. After a month, it sits at the $42,000 mark. There's no guarantee it'll stay there, as it can easily drop as quickly as it increases.


This then makes you wonder if Bitcoin will ever go up. Will, it ever reach the heights it did in November 2021 when it hit $67,000? Will it go higher than that?
Or will it keep fluctuating till it reduces till it's so low that everyone steers clear of Bitcoin?

Will Bitcoin Go Back Up?

Like every other cryptocurrency, Bitcoin has always been majorly influenced by sentiments and policies.

China outrightly banned crypto due to the hazardous effect Bitcoin mining had on their environment and the likelihood of fraud. Russia and India flirted with a possible ban on the mining and use of crypto, mentioning dangers to their economic strength, autonomy, and safety. Also, there have been reports about the US preparing an executive order regarding crypto after a series of assessments and meetings.

These and more have led to the fluctuation of Bitcoin's prices. Earlier, it was pointed out how its value had reduced by about 50% within the space of some months (November 2021 - February 2022), and now there's no telling how the price would unfold.

Nonetheless, there have been many projections by industry experts. Here are some:

◆ That Bitcoin’s price will keep fluctuating.
◆ That Bitcoin will eventually surpass $100,000.
◆ According to a particular Cowen model, a monotonically expanding value enables a possible increased pinnacle for Bitcoin as time goes by.
◆ That investors shouldn't be sentimental when investing in Bitcoin.

Conclusion

Given Bitcoin's well-documented history, it is logical to expect its prices to continually fluctuate. The China ban doesn't help its cause, as other countries might want to follow suit, like India and Russia. There's also the yet-to-be-announced policy by the US, and this can go either way.

However, as shown in the past decade, Bitcoin has a way of bouncing back irrespective of the odds stacked against it. And with the penetration of technology globally and the increasing number of crypto users, Bitcoin is primed to still shoot up the charts.

In the meantime, Bitcoin users are advised to be cautious with their investments and trades as no one can guarantee anything for now.



Author: Valentine. A, Gate.io Researcher
*This article represents only the researcher's views and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.