What Will March 2020 Have in Store for Bitcoin?
Bitcoin and other cryptocurrencies recently reached record-breaking all-time high values, but the success seems to have come to a halt. Bitcoin, Ether, and XRP all dropped in value during the last week of February 2021. The crypto market’s volatility is simultaneously one of its greatest gifts and setbacks, but don’t disregard digital currencies’ potential. Several outside factors significantly influence crypto trading trends and market values. MasterCard, Uber, and PayPal have expanded their financial platforms to accommodate crypto users. By hitting the mainstream, cryptocurrencies have crept into multiple industries.
How Bitcoin and Other Cryptos are Staying Relevant in a Volatile Market
Financial institutions have avoided adopting Bitcoin and other digital currencies because the crypto market lacks a reliable infrastructure. The unprecedented pandemic in 2020 pushed cryptocurrencies to the front lines when global economies were at their weakest. Bitcoin, Ether, and other crypto giants continually remain viable outside of times of economic crisis. Goldman Sachs Group revamped its crypto trading platform and will begin trading Bitcoin and other assets soon. Since Goldman Sachs Group announced its plans to break into the digital asset sector, its stock has risen more than three percent.
Bitcoin has quintupled within the last year, thanks mainly to the COVID-19 outbreak. As March 2021 kicks off, Bitcoin hovers around $48K. Mongolia will discontinue crypto mining to focus on developing energy efficiency standards. Mongolia and the surrounding regions accounted for a substantial portion of new Bitcoin mining. Without Mongolia’s support, Bitcoin’s future trading values will plummet. Several Bitcoin analysts believe Bitcoin has reached a tipping point where the cryptocurrency will enter the mainstream or experience record-breaking failure.
Bitcoin Floundering in an Overheated Market
Tesla purchased $1.5 billion in Bitcoin, but Tesla took a significant financial hit when Bitcoin’s value dropped. The market capitalization faltered, causing Elon Musk to lose millions in profits. Elon Musk has raised questions about Bitcoin’s future in crypto markets, stating Bitcoin is floundering in an overheated market. With many regulated financial institutions breaking into the crypto market, digital currency is experiencing strange market activity.
Some people believe Bitcoin’s future is in jeopardy, but XRP bounced back on trading platforms after facing a lawsuit with the Securities and Exchange Commission. The crypto market’s flexibility provides financial platforms with new opportunities for growth and profit. Digital currencies don’t have federal insurance to guarantee their value, meaning cryptocurrencies’ values can fluctuate without inflation dangers. The crypto market is heating up, but its widespread acceptance doesn’t necessarily mean the market is on fire.
Looking into Altcoin Investments
Bitcoin and other digital currencies have been on a whirlwind journey, causing more people to look into altcoin investments. Altcoins are also known as alternative coins, such as Litecoin. Even though altcoins aren’t as popular as XRP or Bitcoin, altcoin investments still offer profitable opportunities. New crypto traders may consider buying into altcoins instead of Bitcoin or Ether to minimize any financial losses. Crypto trading still produces real-life consequences, despite not meeting the criteria for legal tender.
Bitcoin is currently one of the largest cryptocurrencies on the market. Doubling Bitcoin’s $800 million market cap would skyrocket Bitcoin’s value, making it worth more than gold. Bitcoin isn’t a contender against the USD yet, but the market changes every day. The crypto market’s technological changes and differentiated purpose makes investing in altcoin a viable option for most traders. Bitcoin reigns as the first decentralized digital currency, even though its market history lacks stability.