The price of bitcoin has hit a record high of almost forty thousand dollars in January. However, this high price came on the back of speculation. The investment strategist cashed out of his bitcoin holdings at that point. His fears – including price control and regulation – led him to sell out. But is this likely? Is BTC headed for a crash? Let’s find out.
The price of Bitcoin has dropped suddenly in the past few days. This has happened eight times since the all-time high was reached. In July 2021, the price fell to below thirty thousand dollars as China cracked down on digital currencies. Bitcoin’s market dominance has become mainstream, making it easier to buy the cryptocurrency through comparatively safe exchanges such as Coinbase. Nevertheless, it’s impossible to know what will happen in the future.
The price of Bitcoin has reached a high. If you bought one bitcoin yesterday, it would be worth $99 today. However, there are several factors that may contribute to this increase. For example, if all 500 companies make bitcoin a 1% part of their balance sheet, the price of BTC will go up by forty thousand dollars. This is the speculative craze that has already started.
Regulation is another factor that has a large impact on the price of Bitcoin. Although the government has not yet decided whether or not to regulate cryptocurrencies, expectations about how they will be regulated can make a huge difference in the value. The United States government could decide to ban the ownership of cryptocurrencies – similar to the outlawing of gold in the 1930s. Then, the ownership of cryptocurrency would likely move offshore. This would severely undermine its value.