Why Is Bitcoin (BTC) Down ??
Bitcoin $BTC rules Cryptocurrency world and is a household name for many crypto investors. It is the largest cryptocurrency in the world and has maintained a steady level of around $29,000 to $30,000 this year post a stormy season in 2022. Investors hope that Bitcoin will regain its level of more than $60,000 in the coming time amid strong macroeconomy and positive inflation data.
This guide by Forbes Advisor India explains if investors should run a mile or have hopes in the coin when Bitcoin was trading at 50% lesser than its highest peak at the beginning of the year. However, looking at the market now, BTC has upped its game and is trading at $42,936 as of Dec. 20. Let’s take a deeper look at it.
Why Does Bitcoin Fluctuate?
Bitcoin started the year 2022 with a positive attitude but has witnessed its peak by the end of the year. Unfortunate events and obstacles shook the prices of Bitcoin which led it to crash from $50,000 to $15,000 over the year 2022.
Overall crypto market has seen price fluctuation including Bitcoin. This happened due to unpredicted macroeconomic headwinds and also the most recent fallouts in the U.S. banking system. Let us see various other factors that affected the price of Bitcoin fluctuate:
Post-Russia-Ukraine war effects
Unsteady U.S. banking system
Inflation fear in developed countries
Increasing interest rates in the U.S. and UK
Stringent tax regime in India
Due to the collapse of the largest crypto exchange FTX
The above factors triggered the prices of Bitcoin and made it fluctuate throughout. It also played a significant role in confusing the mood of the investors.
Tips To Consider Before Investing In Bitcoin
Investing in cryptocurrencies is a very appealing concept to people and when it comes to cryptocurrency Bitcoin is a must-must investment, but you need to consider some tips before you go ahead and invest in Bitcoin.
