Bitcoin Fluctuating Prices Cause Worry As It Chases $50K
The leading cryptocurrency is at a peak point in prices, despite an early shaky stance in fortune a few years ago when it was created. The early days of the digital asset had come with several criticisms, as many prominent business figures were unable to wrap their head around the system in which the cryptocurrency operates.
Fast forward to a few years, Bitcoin is still relevant, and many critics have now become investors in the cryptocurrency as its fortunes continue to plummet higher. The cryptocurrency has kept its place amongst many other digital assets as the most valuable and the leading asset in the space, leading to the massive institutional adoption of cryptocurrency assets.
Bitcoin price falls make $50K harder to chase
The cryptocurrency had ended last year on a bullish run, gaining almost 100% in barely 60 days. However, a slow start to 2021 by the cryptocurrency, which saw altcoins like Ethereum surpass it in price performance, has now seemed to be put behind as the cryptocurrency chases the $50K mark. Several analysts predicted that the cryptocurrency would have comfortably surpassed another all-time high of $50K by now. Unfortunately, a $4,000 drop in prices witnessed about 48 hours ago is now starting to create doubts amongst a few.
The price volatility of several crypto assets like Bitcoin has continued to be an issue of debate amongst many outside the cryptocurrency space, who understand that a steady decline in prices will only indicate losses at the end of the day. However, the situation does not seem to bother many, especially institutional investors who understand that the dynamics of the trading market will spur the cryptocurrency prices back up to expected levels. Despite the recent decline in prices, the largest cryptocurrency by Market Cap is currently trading at about $49,200, as analysts believe that the $50K will be attained in no time.
Should institutional investors worry yet
The situation with price volatility around cryptocurrencies like Bitcoin is not a new one, as many traders and investors understand that such features are a part of the assets. However, the rate of institutional adoption in Bitcoin is at an all-time high, with several large corporations and firms committing their treasury and investors funds into the cryptocurrency to amass profits.
A decline in prices will now imply that these institutional investors’ value of the investment is currently at a loss, as their hopes of profits will fall on the cryptocurrency rising back in prices. According to analysts, individual investors understand the business of price fluctuations, as their hopes fall on the digital assets reaching the 100K mark by the end of the year. However, many will be hoping that the recent drop in prices will not affect the massive institutional adoption of the cryptocurrency, which has seen its fortunes plummet higher recently.