(via ZEXPR) Cryptocurrencies have come a long way from becoming a fascinating research subject generally investigated by everybody and understood by just a few to technology with groundbreaking potential.
But still, at this point, a constant question remains the same: Whether we should invest in Bitcoin? Because of its groundbreaking potential as mentioned, many people are making their way towards Bitcoin. Although with the uproar of Bitcoin, some uncertainties are attached to it. The issue that many investors are concerned with is that they find it risky for their funds as Bitcoin has proven to be unstable over time. They feel endangered with their investments in Bitcoin and with other possible frauds related to it.
To answer this question a broker from The Investment Center, Michael Weber, says that Bitcoin is highly unpredictable for investments. Because if we go down the history of Bitcoin that came into being in 2009, ever since it has shown some extreme fluctuations in its value. Analysts have inspected some great highs and lows in the prices when it comes to Bitcoin. So, there is no definite formula to measure its rapid change in value.
The Extremes of Bitcoin in 2021
However, it was suspected through the track of Bitcoin over the past few months of 2021 that BTC seemed to have lost its thrust in March. An analysis was brought forward which showed that in 2020 Bitcoin’s worth went to one of its all-time high that was $60,000. This high value occurred in October 2020 and stayed for quite a while till the early stages of February 2021. Though, it rapidly started to fall by the end of March 2021 which is $57,oo0 on 29 Mar, 8:49 pm UTC, to be exact.
Analysts say that the Bitcoin traders and investors are feeling optimistic because it has been suspected that there will be an April rally in Bitcoin now that they have surpassed the losses that occurred in March. So far, the rise in prices has been seen over the past few weeks.
Why The Investors Are Still Optimistic?
Investment Center’s broker, Michael, further says that; With any month, the potential value possibilities of Bitcoin can be allocated into diverse perspectives,” It is also worth mentioning that in terms of investments, April will always stand out since it is considered as the end of the tax year in UK and US. So, keeping this in mind there is a chance that the proposed theory of having a high value in April could be true.
If we look at the history and the data recorded for the bitcoin highs and lows of price, it shows that there has been a 51% gain on average in April, over the past ten years. So, this means if we map out our theory according to the data available, we will have the Bitcoin’s value at $80,000.
But since we are taking the past observations into account, there have been only two Aprils over the years where we faced a downfall in Bitcoin’s value. This downfall happened in 2014 and 2015 with -6% and -4% in its value, respectively. Taking all of this into the consideration maybe there is some truthfulness in saying that Bitcoin has lost its momentum in March.
Bearing in mind the fluctuations in the value of Bitcoin throughout the past two months, it is very much likely to say that we are still in the midst of a bull market where we are constantly facing Bitcoin losing its momentum.
However, we are well aware of the unpredictability of Bitcoin; one can also assume that this was a mere fluke that Bitcoin showed a relevant rise in its value consecutively 2 times in April over the past 10 years. So, it will be fair to say that there is a chance that Bitcoin might have the rise in its price as we all are expecting.
No one can provide any sort of fact or formula that can answer as to why we have been facing a high time in April when it comes to Bitcoin. All the data that has been gathered by the analysts only tells us that for some reason before coming across with high time in April there is always a fall in March.
It would also be fair to say that the investors and Bitcoin traders have been investing in Bitcoin only based on past events. So, let history guide us well into the future.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.