Bitcoin, without a doubt, has experienced better moments. Now, how many investors are losing money? Here are the keys.
Bitcoin, a term that barely a decade ago was known to a few thousand people and that today is trending topic day after day. Is it the future of the world economy? Why have the Administrations of the countries focused on their regulation? Their trade is very limited, since there will only be a total of 21 million units once the mining culminates its work, but the truth is that it does not live its best journey in the market. At press time, its value is around $17,000 and, certainly, the omens are not good.
The scarcity of units is its main supporter so that, at some point, its value will be above 100,000 or 200,000 dollars. Who knows what can happen? Today, has deteriorated more than 70% in just one year, so the expectations are not the most rosy. There is clear evidence about the average Bitcoin investor. Most people who have deposited conventional money have the wallet in red. The latest market shock, the fall of FTX, has damaged, once again, the most famous cryptocurrency in the world.
What are the expectations of this financial product? Its decentralization is another of its main qualities, but the truth is that most investors you have deposited your money here because it was trending increasing its value and not because of the profit potential it offered. This has caused the collapse of prices of other digital currencies, such as Ethereum.
The document that explains the Bitcoin bubble and the ignorance of the market
Buy Bitcoin safely and without risk is possible due to the existence of exchanges reputable in the sector. The problem is that others that seemed reliable have ended up being financial pufo. Cases like the one that recently occurred with FTX they serve to create doubts in a sector that augurs important practical applications in the future. The blockchain It has great potential, but these events cause doubts about the alternative investment.
Bitcoin is in a downward spiral that has lasted for a year. Image: CryptoNoticias
At this point, the Bank for International Settlements has published a report in which he exposes some key points to understand the current situation. As can be seen from the document, Bitcoin and other cryptocurrencies have caused losses to their users in up to 73 to 81% of cases in the period between 2015 and 2022. In the same way, it has been possible to determine an investor profile pattern of a new invoice. This is usually a man, under 35 years of age and from countries such as Turkey, Singapore, the United Kingdom and the United States.
The current situation is complicated by the macroeconomic environment that is present and the instability that exists in the geopolitical framework. After all, in a situation of high inflation, significant restrictive monetary policies are carried out, which ends up penalizing investment in most financial assets. It is expected that it would not be strange to see values such as Bitcoin at prices below $14,000 over the next few weeks.
When is the best time to buy Bitcoin? It is a difficult question to resolve. What is certain is that until figures for more stable and contained price increases are seen, we will not be able to talk about a better breeding ground for see a growth in your prices. Meanwhile, other opportunities can be found in other financial markets.