Bitcoin: Has It Hit Low or Still More Down?
Bitcoin prices go up and down like a yo-yo, guys. It just rose above US$58,250, but now it's back to below US$56,000. What's going on?
Analysts say that this decline is normal in the investment world. But, is it true that Bitcoin has fallen so deeply?
Analyst from 21st Capital, Sina G, gives some pointers:
Price drop: Bitcoin fell drastically from US$73,000 to US$56,000 due to several factors, such as market correction, reduced investor interest in Bitcoin ETFs, and the sale of Bitcoin by the German government.
Reasonable price: The VPLI indicator shows Bitcoin may have fallen deeply as the price is well below its fair price.
Other factors: But, Bitcoin prices could also be affected by the German government's Bitcoin sales and the funding rate of perpetual swaps.
In conclusion:
Maybe Bitcoin is already at its lowest point. However, there are still other factors that can make the price rise or fall again.
In essence, we must always be careful if we want to invest in Bitcoin. Think carefully, research first, and don't invest more than you are willing to lose."
