Bitcoin is the most prominent cryptocurrency in the market. Created by an unknown individual or group of people under the pseudo-name “Satoshi Nakamoto”. Since its launch in 2009, Bitcoin has dominated the cryptocurrency landscape and is widely known among crypto enthusiasts. It has achieved an all-time high of $73,750 on 14 March 2024. Bitcoin has been undergoing certain modifications for some time. As of August 5, 2024, Bitcoin was trading at $50,112 with a market capitalization of $1.1 trillion. It marked a decline of 29.99% from its peak.
Bitcoin is currently in a declining trend due to the fear of recession in the US. The rising geopolitical tensions are also contributing to the fall of the cryptocurrency. Bitcoin is nearly down by 24.75 % from its all-time high in March.
Bitcoin has declined by around 24.75% from its all-time high of $73,750 with the value dropping below $50,000 in the first week of the month. Currently, the market is struggling with regulatory explorations, with the securities and exchange commissions. The Securities and Exchange Commission’s renewed vigor against the major players in the crypto market also caused the market to struggle.
Why does Bitcoin Fluctuate?
At the beginning of 2024, there was a surge in Bitcoin prices, Bitcoin surpassed its all-time high multiple times in March this year. The value reached up to $73,750.But the last month was the decline period of Bitcoin the price dropped below $60,000.As of August 6, Bitcoin was trading at $55,531 marking a 24.74% decline from its all-time high.
The entire cryptocurrency market including Bitcoin has experienced fluctuations in the market price due to unforeseen macroeconomic circumstances and the recent impact of Spot ETH ETF.
Let us understand other factors that contributed to bitcoin price.
- United States Securities and Exchange Commission approves the spot Ethereum Exchange Traded Fund.
- The decision of the Federal Reserve to reduce the interest rate.
- Spot Bitcoin Exchange Traded Fund.
- Effect of Russia-Ukraine Conflict.
- Instability of banking systems in the United States.
- Fear of worldwide inflation.
- Increased interest rates in the United Kingdom and the United States.
- The collapse of the largest crypto exchange FTX
How to invest in Bitcoin?
If you are a crypto enthusiast who likes to invest in cryptocurrencies then Bitcoin is one of the best picks available. If you are a beginner then here is some advice that you can follow that will reduce the risk of loss associated with the investment.
- Treat cryptocurrencies as a long-term investment. Initially, short-term trading should be avoided.
- Analyze the market volatility before investing
- Diversify your investment by investing in other cryptocurrencies along with Bitcoin to reduce loss.
- Do your research and find the best time to invest and trade on Bitcoin.
The value of Bitcoin is determined by speculation and not by any real asset. Unlike other investments like stocks, and mutual funds Bitcoin is not regulated by any authority. It is advised to consult a financial advisor who can guide you through the process of investing in the cryptocurrency that suits you the most.
Once you complete your research and have a bit of understanding about Bitcoin. Follow these steps to proceed with your investment.
Step 1:Select your crypto exchange and open an account through their website or application.
Step 2: Sign up for the platform by providing your necessary details.
Step 3: Click on the buy option associated with Bitcoin in the portal
Step 4:select the mode of payment such as credit, debit card, or net banking.
Step 5: Once the payment is complete the purchased bitcoin is stored in your exchange account or personal wallet.
Final Thoughts
Bitcoin is one of the most popular cryptocurrencies in the crypto ecosystem. Investments should be diversified to reduce the risk associated with the fluctuations. Highly valued cryptocurrencies can be bought in fractions. This can reduce the burden of investment. If the token seems to be beyond the investment range, it is possible to buy a fraction of the cryptocurrency. Conducting your research before investing will help you to mitigate the risk. The crypto ecosystem is subjected to price volatility and fluctuations. Ensure that you are investing after thoroughly considering your risk-tolerance level.
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