High Percentage Losses Won’t Influence Bitcoin’s Long-Term Value

High Percentage Losses Won’t Influence Bitcoin’s Long-Term Value

You would have to live under a rock not to have some awareness regarding Bitcoin’s massive spikes. Market traders riding the Bitcoin price wave experienced substantial profit gains, thanks to the gaining bullish momentum fueling the drive. The first weeks in January 2021 brought Bitcoin beyond record-breaking market growth that drew unprecedented attention to the crypto market. Market analysts didn’t speculate if Bitcoin would plummet; speculation centered on when Bitcoin’s upward hikes would come to a screeching halt.

As mid-January began, Bitcoin started sliding down below its average performance for 2021. Market experts certainly didn’t expect Bitcoin’s skyrocketing values to continue forever, but the cryptocurrency’s twenty percent drops exceeded analytic projections. Shortly after hitting the forty thousand dollar mark, Bitcoin crashed in percentage losses.  Bitcoin experienced market drops in the past, but January’s massive decline shadows previous lows except for the historic drop in March 2020.

What's Going on With Bitcoin?

Indeed, Bitcoin hasn’t experienced such shocking losses since the COVID-19 pandemic hit in March 2020. However, traders must remember that the significant percentage shift is the primary foundation for the comparison. Bitcoin took a hit that came before expected, but the token’s fundamental value remains unchanged. Bitcoin lost percentage increases, but the cryptocurrency hasn’t pulled out of the game entirely. In March 2020, Bitcoin’s value dipped more than sixty percent and nearly wiped the digital currency off the map.

Bitcoin continued bearish market trends entering the third week in January, signaling a possible decline to less than twenty-four thousand. Bitcoin’s unimpressive performance stimulated growing strength for the US dollar, but the oldest digital currency’s future balances delicately on several influential factors.

Growing Demand for Crypto Assets Cushions Bitcoin's Dramatic Percentage Losses

Bitcoin tokens still hold value despite projected bear trends on the crypto trading market. Nevertheless, traders mustn’t forget the majority’s perspective regarding Bitcoin and its previous reputation. Crypto assets are in high demand as fiat currencies face expected inflation rates, but limited token supplies provoked traders to hoard their crypto holdings. The combination of high demand and low availability practically guarantees long-term market value and price appreciation for Bitcoin.

Bitcoin’s historic price hike and the fated decline seem to prove the digital currency’s stability in a volatile, untested market. Traders’ loyalty seemingly remains with Bitcoin, which appears to leveled market trends, at least for now. Regulatory warnings from major centralized platforms created fear and panic amongst Bitcoin investors, but blockchain’s impenetrability steadily holds ground.

The Mystery of the Bitcoin Bubble

Suspicious concerns and whispers from central banking institutions suggest Bitcoin may be in another bubble, as it was during 2017. Crypto experts strongly disagree with third-parties’ ranging irregularities when defining the term bubble. The common thread of multiple definitions for bubble pointed to price increases unrelated to an asset’s fundamental or intrinsic value. Tokens, without defined value, cannot lose value in centralized financial environments.

Novice crypto traders and regulated institutions forget digital currencies’ lack of traditional conventions and structure. Bitcoin can’t exceed its fiat currency value because the digital currency’s intrinsic value lacks definition. Unlike other currencies, cryptocurrencies don’t have to play by the same rules. Bitcoin and crypto trading remain relatively new tech advancements lacking fiat ecosystems’ typical characteristics. Bitcoin can’t be in a bubble because it’s an unevaluated digital asset. Before giving up on Bitcoin’s future, it is wise to keep watch for the crypto giant’s return.