At the start of 2020, bitcoin was at US $ 8,000. In December 2020, the price of bitcoin started to climb again and crossed US $ 20,000. The surge continued until this month, with the price of bitcoin crossing $ 40,000 for the first time. In the past 24 hours, bitcoin has seen lows of US $ 32,636. “When the price of bitcoin jumped in December 2020, everyone was afraid to miss out on the lucrative returns that bitcoin was offering, so there was huge demand from institutional and retail investors across the world, this led to a bitcoin’s price spike massive, ”says Shivam Thakral, CEO of BuyUcoin.
“The recent drop from an all-time high of US $ 42,000 is more than expected and should be viewed simply as a price correction. This is a healthy pullback that will provide long-term price sustainability for the market. bitcoin, ”Thakral adds.
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The world’s largest cryptocurrency has given over 300% return in 2020. It has attracted many retail and institutional investors. But this correction dampened the mood and investors began to question whether this price correction should be seen as a trend reversal from here on out. Should You Sell Bitcoin Considering the Falling Prices?
ZebPay CEO Rahul Pagidipati has predicted that Bitcoin will hit 1 crore by 2030, and according to him, that’s a conservative estimate. “Bitcoin is designed to withstand inflation. It has a fixed supply and no central bank or other entity can print more bitcoins than they can in dollars or rupees. Although it is volatile at the moment. because it’s new, Bitcoin will prove to be more inflation-resistant than even gold, ”he says.
Experts ask to hold bitcoins for longer term to get good returns.
“You need to follow the fundamentals of investing to be successful at Bitcoin trading. Investors who have remained invested in Bitcoin for 2-3 years have made substantial profits from their investments and there is data to prove it. At and unless you have an urgent expense in front of you, it is advisable to hold bitcoin for the long term in order to generate maximum value from your investment portfolio, ”Thakral says.
Experts believe the crypto industry is here to stay and grow further. They expect to see increased demand from the retail industry in the coming years. Institutions should position Bitcoin as one of the primary investment assets in users’ wallets.
“In the recent past, we have seen many payment rails / gateways like PayPal, Square integrating cryptocurrencies into their services. The main draw is the sheer demand that is seen in the crypto industry. The units NBFC, such as insurance giants like Massmutal, have now made an entry with investments in Bitcoin. JP Morgan Chase suggests that Bitcoin’s popularity may match that of more traditional products, such as gold, according to a research note shared with its customers, ”says Sumit Gupta, CEO and Co-Founder, CoinDCX.
In order to guard against volatility, experts suggest investing a small amount consistently, just like SIP in a mutual fund.
“The best way to guard against volatility is to invest a small amount consistently – what we call the average cost in rupees – so that the average price you invest is the best possible price you can get at the over time. Think of it like a Bitcoin SIP.
The proof is in the numbers: Despite the declines, if you held bitcoin for more than 3.5 years in any period so far, you had a 99.9% chance of making a profit. Past performance doesn’t predict the future, of course, but this kind of long-term trend is hardly ever seen in any asset class, ”says Vikram Rangala, CMO, ZebPay, below.