Any news about Bitcoin is likely to attract so much attention. So much so if the information is about the price changes. Whenever the price of the crypto changes by a significant margin, it creates so much media and public excitement. Quite many people got to know about Bitcoin from such circumstances. Use biticodes if you want to get started with bitcoin trading.
Recently, news about the plummeting price of Bitcoin has been everywhere. In November 2021, there was so much media hype about Bitcoin when it hit the all-time high price of $68,000. Such news would cause anyone to want to know more or start investing in Bitcoin.
But, shortly after, news about the significant price drop of the most popular crypto this year emerged and again caused another furor. For the past several months, the price of Bitcoin has not moved far from $20,000. And this marks a significant price drop of about 70%. Can you imagine an asset having such price volatility?
Bitcoin Price Volatility
Bitcoin is a cryptocurrency. As such, it has high price volatility. The 70% drop in the BTC between November last year and now clearly indicates this. However, the BTC also surges with varying margins. Price volatility is one unique quality that makes Bitcoin unique, and investors are always keen on following the price shifts.
Predicting Bitcoin’s price changes is challenging. It relies on speculation, and your predictions may not be excellent unless you are good at it. But thanks to platforms like Bitcoin Equaliser, you can find support in making these predictions.
What Does Recent Price Volatility Mean?
The recent drop in the BTC price has attracted so much attention from investors and analysts. They are keen on understanding what it means or implies for their investments and the future of Bitcoin. For those who had invested in crypto, the 70% price drop was a significant blow because they lost a lot.
However, beyond the furor, what does this mean? First, the 70% price drop marks the biggest ever margin that Bitcoin price has ever fallen. One wonders what could then have caused it. Various macroeconomic factors affect Bitcoin prices.
At the moment, various macroeconomic forces could have caused the price of Bitcoin to drop significantly. One of these is the Russian invasion of Ukraine which has had significant ripple effects economically. Because of the war, which is continuing, oil and gas prices have shot up, and inflation has risen.
Bitcoin, being one of the fastest growing digital currencies and assets, has suffered from these factors. Until the macroeconomic factors change, the price of the crypto will likely remain around the same level that it is now. Between June and July, the price fluctuated between $19,600 and $23,300. Currently, it stands at around $22,000.
Has Bitcoin Hit the Bottom?
It is not easy to say whether Bitcoin has hit bottom. That’s because of the prevailing macroeconomic conditions. The Russian war in Ukraine is continuing with no specific end in sight. And this means that the price of Bitcoin could remain at the current levels or decline even further if conditions worsen.
Some analysts have predicted that if macroeconomic conditions worsen, the price of Bitcoin could drop even further, up to $10,000. However, this could not be the case considering that most analysts base their analyses on speculation.
With the recent 70% drop in Bitcoin prices, it’s likely to see the crypto continue falling as the global macroeconomic conditions worsen. At the moment, Bitcoin has not hit bottom.