Today, September 09, has been a rather auspicious day for Bitcoin. Just mere hours ago, Bitcoin went up from $6,190 to $6,450, and let’s face it – this is rather good news, or isn’t it? The jump in the value of BTC has been a much refreshing event, as we have all become painfully accustomed to listen about the latest slump.
Given how much beating the Coin had taken in recent months, most recently on September 5, it’s difficult to imagine anyone expecting it to jump back today. Analysts were certainly not expecting anything of the sort.
What Caused the Slump on 5th of September
September is known as the month of plots. After all, a famous and very treacherous plan to blow the British parliament was nipped in the bud. But Bitcoin aficionados can clearly associate the lines:
Remember, remember, the 5th of November.
Perhaps just the month is in the wrong right now. But the slump is very palpable indeed. The simple truth is that nobody can explain why a cryptocurrency would go down from 7,400 to 6,400 in mere seconds and then plummet further down to 6,100. That was 13% drubbing that Bitcoin took.
An author at Medium certainly tried to make sense of the events, but not much was achieved in the course of his analysis. The word unpredictable surfaced on several occasions. Still, we believe that his take on the matter is very much important to understanding how BTC fluctuates, and perhaps even to why we cannot trust it.
Of course, Cryptonewest wants to see Bitcoin and its affiliated cryptocurrencies succeed, but there is also the lurking fear that such dreams may be unrealistic. Meanwhile, Blockchain, as we have noted on numerous occasions, has been doing splendidly!
What to Make of It?
The present increase in the value of BTC is also quite tantalizingly unexpected. Only, this time nobody is really upset with the events and everyone has something to be truly joyous about.
And yet, the fact that investors may not know what has occasioned the latest events need to keep in mind that they will do exceptionally well to just batten down the hatches and not give up on their assumed stance of security.
One notable analyst, ShapeShift CEO Erik Voorhees went on CNBC Crypto Trader and elaborated on the most recent happenings:
“I don’t expect it (bear market) to end soon, although I do think that the rate of collapse has slowed considerably. Generally in these bubbles, after you go through several months of a downtrend you hang out in a range for a while… But I think we are done with a majority of the collapse.”
Should Investors Be Scared?
Not as such. Those investors who have allocated their portfolios to BTC definitely have what to be afraid of. However, they also need to realize that BTC is the way it is – its value is going to fluctuate quite mercilessly and there will be little wriggle room to address the issue as Bitcoin is still churning violently to adjust its price.
Investors need also look at the facts. Bitcoin has been fluctuating between $6,000 and $10,000 for months now. Even after a heavy drubbing at $6,000 flat, the cryptocurrency made it all the way back at $10,000 and we are talking resistance levels here.
However, if there’s something we have learnt in these past few months it’s that BTC’s value usually fluctuates between 5% and 20% and that has been happening for a fair while now. Of course, nobody can provide sure-fire signs that BTC will continue to climb.
And here’s the gamble that investors must do – do they continue to pursue this course of action or do they reconsider reinvesting assets. Selling Bitcoin is both difficult and it will certainly generate a loss on the original investment, unless the people who waited got into the game very early on.
Investment for the Future
A popular summary of the BTC industry is that nobody really can expect the cryptocurrency to flop completely. No matter how hard it is buffeted, BTC is far more likely to transform itself into something completely different as to disappearing completely.
With this in mind, we can safely say that your investment is going to be safe for a good long while. However, nobody can say exactly when and how BTC will be the high-yielding asset investors expect it to be.
Even more worryingly, nobody can say IF, and that’s important. It’s the make-and-break factor that investors need to pin down and explore at their own leisure. However, not many have that insight knowledge, because, let’s face it – BTC is a guessing game. Will it go up, will it go down.
It turns out to be an excessively greasy poll and one that nobody can quite climb up without sliding down, at least a little.