Bitcoin Analysis: Is Bitcoin Ever Going to Recover?

Is Bitcoin Ever Going to Recover?

There is no straightforward answer to this question. Bitcoin has proven itself to be an extremely volatile asset, and many experts have been proven wrong when attempting to predict its future price. In fact, there is an argument to be made that bitcoin has already recovered, given that it was worth $4,000 in February 2017, the last time that a similar crash took place. In other words, the current price of bitcoin is very similar to what it was during the last crash, so it could be seen as a “correction” rather than a crash. However, the fact that this is the second major crash in less than a year suggests that there is something fundamental wrong with both the cryptocurrency market and the technology behind it. This crash seems to be more of a “crash” than the last because it has lasted much longer and the price of bitcoin has been consistently decreasing for a longer period of time. As for what caused the crash, there are a number of potential factors. The most popular explanation points to regulatory uncertainty in major countries like the United States, China, and South Korea. Others believe that the crash is due to the fact that the cryptocurrency market is experiencing “a natural correction,” that it is simply a product of supply and demand, or that it is simply the result of panic selling by investors.

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When Will Bitcoin Recover?

As mentioned above, if this is a “correction” rather than a crash, then bitcoin may already have started to recover as the similarities to 2017 are uncanny. However, if this is a “crash,” then it is hard to say how long the recovery process will take. If we look at past crashes, we see that they tended to last anywhere between one and two years. This is a long time to be without a return on investment, and it is important to remember that investing in bitcoin is a high-risk activity that is not suitable for everyone. However, the fact that this is the second major crash in less than a year suggests that it is more likely to last a long time than to be over quickly. This is because any fixes that the developers behind the technology need time to implement, and regulatory uncertainty is something that is unlikely to change quickly.

How Can Investors Protect Themselves?

The best thing that investors can do during a major crash like the one that is currently taking place is to be patient. It can be tempting to sell your assets and cut your losses early if you’re worried about the current price situation, but it is always better to wait until the market has recovered to sell. This is because when a market is crashing, the prices of all assets tend to decline, so you shouldn’t be too worried about the fact that your investment has decreased in value. There is a good chance that the price of your coin will increase again as soon as the crash ends, meaning that you will be able to sell at a profit and make back some of your losses.

Final Words

As we have seen, the bitcoin bear market of 2018 is going to go down in history as one of the most brutal periods for cryptocurrency investors. After peaking at almost $20,000 in January, bitcoin has since lost around three-quarters of its value. The downward price spiral shows no sign of abating; BTC is currently trading at just above $4,000. This isn’t the first time that Bitcoin has plummeted in value, though. In fact, the digital currency has experienced several price crashes since its inception in 2009. But what sets this current crash apart from previous ones? And when—if ever—will BTC begin to recover? Let’s take an objective look at the current state of the cryptocurrency market and see if we can answer these questions.