The world’s first and most popular cryptocurrency “Bitcoin”, according to “Bloomberg” calculations, has recently experienced the smallest fluctuations in a 90-day period since 2016. Experts call this “apathy”.
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One of the reasons why financial experts generally do not recommend investing in cryptocurrencies lies precisely in price fluctuations. A couple of years ago, Bitcoin prices could rise or fall by several thousand US dollars in a matter of hours or even minutes. For example, at the beginning of 2021, the price of “Bitcoin” doubled in a little more than a month.
However, since 2022, when the so-called “crypto winter” came, when many companies in the industry went bankrupt, digital coins lost a huge amount of value, and investors moved their money to safer assets, the fluctuations are smaller and less frequent.
Data compiled by Bloomberg analysts show that over a 90-day period, “Bitcoin” shows the smallest price change since 2016. The reduction of fluctuations is already visible since the winter of this year.
Looking at the price of “Bitcoin” in the six-month section until August 16, it can be seen that, although the price of the digital coin has increased by a little more than 20%, it is mostly sticking to 29 thousand US dollars per coin (on other platforms the price is sticking to 26 thousand dollars).
Although there was some enthusiasm in the middle of the summer due to the fact that “Blackrock”, the world’s largest investment firm, is going to offer a “Bitcoin” ETF in the US market, overall enthusiasm on the part of digital coin investors has been low.
Kestra Investment Management Investment Director Kara Murphy believes that the long-term appeal of Bitcoin remains, but now that interest rates are rising and there is no “free money” for investment, cryptocurrencies are not the most attractive asset because, unlike stocks, nothing else guarantees their value. , excluding market demand.
The expert believes that apathy will remain, because the large fluctuations of “Bitcoin” are unlikely to return, taking into account the cost of borrowing money.
2023-08-16 07:12:06
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