The global crypto market continued to prosper until the closing months of 2021. Later, it saw dips in value, and Bitcoin, the unchallenged market giant, had shares in it. The situation has persisted, and the losses for Bitcoin grew as its value has almost halved. It had reached its all-time high of above $60K, but the ongoing changes have brought it near the $20K range.
The current situation shows that it might go even lower. The global geopolitical situation hasn’t improved and might bring further losses to this coin. Furthering dips would translate into losses for BTC owners and companies that offer its services. Though it has put them in a difficult situation, the investors still wait for the good days.
Here is a brief overview of the regressive Bitcoin market, the previous record of this coin, and whether the customers should buy BTC dip.
Regressive Bitcoin market
The bitcoin market continues to stay regressive as the investments have lowered. Various factors have affected Bitcoin’s value. These include US inflation, decreased global investments, geopolitical crises, and growing regulations. The changes spurred by these problems have led to the latest losses for BTC in Mid-June.
Its price value has seen staggering lows as crypto lender Celsius Network stopped withdrawals. Coinbase CEO had also said in a statement that they might stop withdrawals if they see chances of bankruptcy. The plunge for BTC has been more than 52% in a year, indicating how much the investors have lost. The current regression might increase this value. While the value of BTC is compared to its all-time high of $69K, it has lost more than 70%.
BTC holds a significant value in market capitalization as its dominance is about 45% range. The global market cap value change has dropped from the all-time high of $3 trillion to less than $1 trillion. The current changes have created a pessimistic situation for the investors who expected a rise in its value.
Previous track record of Bitcoin
BTC rose as the result of the global financial crisis in 2008 and was seen as an alternative to the traditional financial system. Bitcoin is central in DeFi (Decentralized Finance) as it offers trustless payments to customers.
BTC has seen a loss in value various times as its value came down to $3,400 in December 2018. It had decreased from $18K in December 2017. Thus, fluctuations have remained normal for BTC as it has seen some chilling lows. The value of Bitcoin then rose to $68K in November 2021. So, the market’s current situation seems to be part of its price change pattern. Market analysts predict that further lows are awaiting the market as its value might lower further in the days ahead.
If it happens, the value of BTC might lower from $20K, which serves as the current resistance level. As a result of this change, the impacts on the global market cap value will also be evident.
Should you buy the dip?
Many investors are confused by the current situation regarding whether they should invest in BTC. There is a reason for being affirmative to this question. If we consider the previous track record of Bitcoin, it affirms the fact that Bitcoin has benefitted its investors. BTC still dominates the market while hundreds of projects need its support.
There is a possibility of about 21 million Bitcoins, a majority of which are yet to be mined. So, those intending to invest can rely on it for profits. It will open up chances of growth as Bitcoin Lightning Network and Cash App, etc., offer better services than traditional systems. These are Bitcoin-based, so BTC won’t go unused.
Thus, it is a better time to buy the dip as it can benefit the investor tremendously.
Bitcoin has seen new lows as the result of a bearish market. The current changes have affected investor morale as the value of BTC has lowered. The ongoing changes suggest that its value might lower further. If it happens, the market might sustain further losses. Though it shows a bleak picture, there is a silver lining in it for investors. They can buy the dip and utilize the rising value later.