According to coinmarketcap, the price of bitcoin is $21,000 today. This was a loud cry from what it was at its all-time high price of $64,800 on April 14, 2021.
What happened between April 14 and today, and will bitcoin ever rise again.
To understand the future of bitcoin, we must first understand why it fell and its significance.
The price of bitcoin is whatever people are prepared to pay for it, which means the more the demand for bitcoins increases, the more its worth.
There is nothing to say people have to hold; if more people decide to sell today, the price can go to $100, and nothing can keep the price as it is unregulated. This on its own makes it even more volatile.
There is growing fear in the air. People are getting scared, which means when there is fear, there is panic, and when there is panic, people rush to take their money out, and when this happens, the price drops even lower.
Binance, the largest global crypto exchange, paused all Bitcoin withdrawals for a few hours. It said this was due to a stuck transaction — while people took this with mixed feelings, many saw it as a sign of paradise in trouble.
Celsius, crypto lender blocks bitcoin withdrawer — saying extreme market conditions.
Coinbase announced it is laying off 18% of its workforce; details can be found here.
Top analysts believe “the global meltdown and the war in Ukraine are playing big macroeconomic factors in the fall of bitcoin.”
Elon musk sold 75 percent of the bitcoin tesla owns, which added 936 million dollars, and bitcoin lost 3% of its value when the result was released.
While all these glooms abound and fear that bitcoin might become worthless.
Hopes come from countries like El Salvador, the Central African Republic, Russia, and others taking steps to give bitcoin the support or backing it needs to sour.
Will it rise, everyone is asking?
Many believe the next halving of bitcoin will create new demand for the coin and drive the price up.
While this has created demands, many bitcoin enthusiasts believe this would pull the coin out of the corner.
I doubt all of this would mean much as the next halving is in 1362 days. While many dynamics can pull the coin even lower before that time, I fear this would not save the crypto market.
Another school believes once the market stabilizes, the price will shoot up as demands and supply dynamics will come to play.
Conclusion
While all these are mere projections and analyses, we cannot tell where such a volatile market is going.
We can only thread carefully, listen less to buy the deep, and hope for the best while we keep our fingers crossed.
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