Anyone with even a passing interest in bitcoin will be keenly aware of its volatility. If you are one of the millions of Americans who bought into bitcoin in 2020, you might be feeling somewhat disappointed. After all, 2021 has already seen some of the most spectacular price crashes in the history of bitcoin, following brief moments where the cryptocurrency was at its highest ever value.
But will bitcoin crash again in 2021? While any bitcoin prediction amounts to little more than alchemy, there are some signs that we can take a look at. If you want to get a better idea of the trajectory of your crypto investments, read our take on will bitcoin crash or not in 2021.
Trouble On the Horizon
If one takes a closer look at how the past few months have played out for bitcoin, it doesn’t look good. After all, the price of the coin fell dramatically once China put serious curbs on mining and spending it, weakening the world’s largest market for bitcoin.
Meanwhile, the fact the price of the asset was revealed to be entirely based on the whims of one of its largest investors, Elon Musk, has done little to inspire confidence. But will bitcoin crash further?
In the short term, it looks possible that this could be the case. After all, a series of large banks, including Starling Bank, have slammed the brakes on their own bitcoin plans, banning all transactions in the currency on a temporary basis.
Meanwhile, the FBI is continuing to target the use of bitcoin in organised crime, which will likely hold the price down for the next few months at least. All in all, there is not a huge amount of positive news on the horizon.
The Long-Term Picture is Stronger
Like any smart investor, it is important that you can look beyond the short-term noise and focus on the bigger picture. When asking how much is bitcoin worth over the next few years or decades, the picture looks a bit more positive. Largely, this is because unprecedented strides are being made towards the normalization of bitcoin as an everyday asset and currency.
For example, you can even get info online to find out where your nearest bitcoin ATM is, out of thousands stationed in stores across the country. Meanwhile, central banks are making large strides towards normalizing crypto by implementing their own blockchain-backed currencies. This could help to shore up bitcoin’s fundamental value further.
On top of this, the world’s largest investors and financial institutions are continuing to pile into bitcoin despite the recent downturn, which suggests that they believe the long-term picture is positively rosy. When the world’s sharpest financial minds are continuing to bet on bitcoin, that’s usually a good sign.
Tech Insights You Can Trust
So, when asking will bitcoin crash again 2021, the answer is hard to say. What matters is to look at the bigger picture to determine whether your investment is wise. To make more informed decisions on the tech that matters, you can count on us. Make sure to stay up to date with our latest tech insights and tips.