Bitcoin has been on the roller coaster since it was launched. Its prices have risen to unprecedented levels in the past. Unfortunately, they are currently rolling at an unprecedented rate. Not surprisingly, most Bitcoin investors are in disarray.
So where are the investors currently, and where would you stay if you had invested $ 1,000 in Bitcoin? Here are the precise figures.
It depends on the timing
Bitcoin exceeded the $ 100 threshold in 2013. This marked the beginning of its rise to newspaper headlines. Prices have risen to more than $ 20,000 in December 2017 and have always been marked by unprecedented volatility. However, Bitcoin prices have been on a downward trend since the start of 2018, and this has led to the entire cryptocurrency market at a bear run.
Bitcoin is currently trading at unprecedented lows with prices that range to $ 4,000 – its volatility has also seen prices fall below the $ 3,500 mark. This is worrying considering that the support has been set at $ 6,000. Moreover, it does not help major analysts to predict even in harsher times, with some suggesting that the bear market could last until 2020, with prices falling to $ 2,000 lows.
Considering the change in volatility in past years, investor ROI would depend on the time they invested. Those who invested at least $ 1,000 in 2011 are now millionaires. However, those who bought about 10 months ago are struggling with heavy losses.
Unprecedented volatility levels
Bitcoin is perhaps the most volatile security in global financial markets. Its prices have increased by about 428,000% since January 2011 – prices have gone from less than one dollar to over $ 20,000. Not surprisingly, prices have fallen just as quickly as Bitcoin's decline in value of about 68% from the start of the year – this is equivalent to 4,000 points more in the Dow Jones Industrial Average!
Volatility is always as good as any intelligent investor will attest. However, it could prove too risky for Bitcoin investors.
And now?
BTC is still changing hands despite the current bear market. Those who bought it for $ 20,000 in 2017 regret their decisions now – many have even given up on crypto markets. However, some have seen this as the perfect opportunity to invest in cryptocurrency.
Ric Edelman, the founder, executive president of Edelman Financial Services, has a double-edged message for those who are currently buying in Bitcoin: keeping an open mind. As mentioned earlier, there are concerns that the bear market may last until 2020. To this end, those investing in the crypto should be ready to hold their coins for several years before getting a good ROI – they should also be prepared to lose their money Those who will profit most from Bitcoin are the first investors.
Conclusion
Bitcoin is having its worst moment in many years as it is the biggest victim of the current cryptocurrency bear market. Investors are counting profits or losses depending on the investment time. Furthermore, those who take advantage of the bear market to invest look at an uncertain future.
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