Assets, Bitcoin

Is Bitcoin Likely to Fall Again?

It’s been a rollercoaster ride for Bitcoin investors over the past few years.

The digital currency surged to nearly $20,000 in December 2017 before plunging more than 80% over the next 12 months. It then rebounded in 2019, but has once again lost ground in 2020.

What’s behind Bitcoin’s latest slump? And is the cryptocurrency likely to fall further in the months ahead?

Here’s a look at some of the factors that are weighing on Bitcoin.

The coronavirus pandemic has roiled financial markets around the world and sent investors fleeing to safe-haven assets like gold. Bitcoin, which is often touted as a digital version of gold, has failed to benefit from this flight to safety.

Instead, the cryptocurrency has been weighed down by concerns that it could be used to finance illegal activity. In early October, the U.

S. Department of Justice announced that it had seized more than $1 billion worth of Bitcoin that was linked to the Silk Road online marketplace, which was used for illegal drug sales.

NOTE: WARNING: Investing in Bitcoin and other cryptocurrencies is a high-risk activity. The value of Bitcoin can fluctuate significantly over time, and there is no guarantee that it will not fall again in the future. You should never invest more money than you can afford to lose, as there is always the possibility that you may lose all or part of your investment.

This isn’t the first time that Bitcoin has been tied to criminal activity. The digital currency was also used on Silk Road’s successor, Alphabay, and on other dark web marketplaces.

These associations have made some investors leery of buying Bitcoin.

In addition, Bitcoin mining – the process of creating new Bitcoins – requires a lot of energy, which is costly and bad for the environment. The Cambridge Center for Alternative Finance estimates that Bitcoin mining consumed about as much electricity in mid-2020 as all of Argentina.

This is likely to become even more of a problem if Bitcoin usage grows significantly in coming years.

Finally, there’s been a proliferation of so-called “altcoins” in recent years – cryptocurrencies other than Bitcoin that have gained popularity with investors. These include Ethereum, Litecoin and XRP (the native token of Ripple’s payments network).

With more options available, some investors may be less inclined to put their money into Bitcoin.

All of these factors suggest that Bitcoin could fall further in the months ahead. However, it’s important to remember that the cryptocurrency is still up sharply from its lows just a few years ago, and it remains popular with some investors despite its recent struggles.

So while a further decline is certainly possible, it’s far from certain.

5 Related Question Answers Found

Will Bitcoin Continue to Drop?

The Bitcoin market has seen a lot of turmoil in recent months. After reaching an all-time high in December, Bitcoin prices have been on a steady decline, and this has led many to wonder if the Bitcoin bubble has finally burst. However, it’s important to remember that the cryptocurrency market is still in its infancy, and it is therefore subject to much more volatility than traditional markets.

Can Bitcoin Crash Again?

When it comes to Bitcoin, there is a lot of speculation and debate on whether or not the digital currency will crash again. The truth is, no one really knows for sure and anything is possible in the world of cryptocurrency. However, there are a few things that could happen that could lead to another Bitcoin crash.

Is Bitcoin Falling?

Bitcoin has been in the news a lot recently. Some people think it’s a great investment, while others think it’s a bubble that’s about to burst. So, is bitcoin falling?

Will Bitcoin Go Down After Halving?

As the halving approaches, many people are wondering if Bitcoin will go down after the event. While it is impossible to predict the future, there are a few things that can be considered when trying to answer this question. First, it is important to understand what the halving is and why it happens.

Is Bitcoin Going to Crash?

When it comes to Bitcoin, there are generally two schools of thought – those who believe that the cryptocurrency is a revolutionary new asset, and those who think it’s a bubble that’s about to burst. However, there are also those who believe that Bitcoin is both – a revolutionary asset with the potential to change the financial world as we know it, but one that is also in a bubble that could pop at any time. So, is Bitcoin going to crash?
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