Crypto Update: Is Bitcoin Crash or Surge Incoming?

Will Bitcoin crash or surge? Bitcoin has been walking on a tightrope for the last few years. The prices of cryptocurrencies are unpredictable, with a track record of “Rise and Fall” cycles, which is why investing in crypto is similar to playing with fire.

A ray of sunshine appeared in 2023, with the Bitcoin price rising over 30,000 dollars in April. However, till August, the amount of losses investors faced brushed away all the advancements made in prior months.

We will explain the contemporary cause of the Bitcoin crash and the 2023 Bitcoin crash in the market.

Let’s uncover the reason for the latest price action.

Why is Cryptocurrency so Volatile?

The prices of cryptocurrency solely depend on the number of coins. For this reason, a major rise and drop is observed in its value.

This implies that you can lose all your money just as fast as you can make it. Many investors have been left wondering how such volatility can occur at all.

Bitcoin Price Fluctuation

Bitcoin is extremely volatile. On a daily basis, a major surge and slump is observed in its prices.

Bitcoin isn’t the only crypto-currency encountering major price fluctuations. In General, the price action of Bitcoins and altcoins mull over wider market trends.

Unlike standard investment, where price actions are affected by the performance of the business. Bitcoin has no basal asset. This means that price actions are completely based on the opinions of investors on whether it will surge or crash.

Is Bitcoin Going to Crash?

The way the prices of bitcoin are touching economic highs and lows, there is no warranty when it comes to spending money on cryptocurrency.

There are countless factors, that are reducing the potential of cryptocurrency.

• The platforms used by people for crypto exchanges are going through financial problems.
• Security issues
• A solid framework of rules has closed down cryptocurrency exchanges.
• Immense price fluctuations

However, In the long term, this regulation could be fruit-bearing for the crypto market. Also, it escalates the confidence of the consumer.

Why Bitcoin Crashed?

The following factors affected the price of Bitcoin

• Hence, with the purpose of stabilizing the cryptocurrency, there has been regulation in the crypto market.
• Moreover, a solid substructure of rules has shut down cryptocurrency exchanges.
• Also, As a result of inflation, Investors believe that inflation will remain high for some time, and fear spending money on crypto. This could leave a bad impression on consumer reliability.
• Furthermore, it has been reported that SpaceX, The spacecraft manufacturing company of Elon Musk, has sold a portion or all of its Bitcoin holdings.

Final Thoughts

The bottom line is, Bitcoin is a risky investment. There are several different predictions made on the Bitcoin crash. Only time will tell where Bitcoin will head next.

Also, Bitcoin is known for its strong nature. Many experts predict that Bitcoin is going to crash soon. Nevertheless, cryptocurrency is still preferred by many investors and also assists them in making significant assets.

If you want to know more about the alternatives to Bitcoin, comment down below.