Bitcoin’s prices hit an all-time high of over $ 40,000 less than a month after the initial breakthrough of $ 20,000. Since the start of the last rally, which supposedly started in October, its value has quadrupled.
For professionals and newbies alike, or if you want to be the cryptocurrency expert at your next zoom party, it is natural to ask: Why are prices rising and is Bitcoin going to crash?
Bitcoin (BTC) was invented only 12 years ago as a novel electronic payment system built on an internet-based computer network that no individual, company, or government can control. The reality is that the cryptocurrency’s trading history is so brief that the methods used to value the asset are still largely untested that no one really knows exactly what it should be worth now or in the future.
Based on CoinDesk’s reporting, here are a few key reasons why Bitcoin prices have increased recently:
All of this has potentially resulted in a huge rally over the past few months. But could Bitcoin prices crash? Of course they could, several analysts told CoinDesk.
The price of the cryptocurrency is notoriously volatile, and significant and unexpected fluctuations in price are not uncommon. Below is a selection of comments from cryptocurrency analysts and other financial experts on what a pullback looks like and what could cause it.
So for the Zoom party, yes, according to experts, a crash is likely to happen, but that’s typical for Bitcoin, and if history is a guide, prices will likely recover.
Just don’t tell them when.