Bitcoin (BTC) Price Has Dropped 10% Since 2022 Started – Time to Buy?

Indeed, the crypto industry prints disappointing actions at the start of the New Year.

Bitcoin (BTC) has maintained downtrends so far this year. The latest fall followed hawkish comments from Federal Reserve, highlighting inflation. For now, the leady crypto has lost over 10% as far as 2022 is concerned, indicating its high volatility. While publishing this content, Bitcoin has its price fluctuating at $41,800. That way, the token stays 38% lower from the November record high, near $69,000.

Bitcoin’s Recent Moves

Bitcoin’s latest price drops came due to unfavorable market situations that ruined investor sentiment. The U.S. Federal Reserve’s minutes showed interest rates might rise soon. Moreover, the latest COVID-19 variant scared market players.

Janet Yellen has made negative comments on crypto in 2021. The Treasury Secretary termed Bitcoin as an inefficient mode of completing transactions. Yellen also stated that digital coins could facilitate illegal activities.

Also, Tesla executive Elon Musk dented confidence among market participants. The billionaire highlighted that Bitcoin appeared higher than its logical level. Many critics keep attacking Bitcoin because of the energy needed to mint the token. Miners run Supercomputers and high-end machines to solve intricate puzzles and algorithms to create BTCs. W

While the financial space has around 19 million BTCs circulating now, only 2 million tokens remain for future mining. Bitcoin founder Satoshi Nakamoto had capped BTC’s overall supply to 21 million. Experts forecast that the miners will exhaust the remaining coins by 2140.

Should You Buy?

Bitcoin price requires a significant upward move to flip the psychological barrier at $50K into support for stable upswings. Though BTC has lost a substantial percentage, investors may be used to such movements. BTC and other cryptocurrencies are high reward/high-risk investments.

If you want to buy Bitcoin now, you might need to utilize the DCA (dollar-cost averaging) strategy. The approach involves investing a certain amount in a single coin regularly over time. DCA is risk-reduction equipment that decreases market volatility’s effect on assets purchase. With that, the strategy proves lucrative in the current market atmosphere. Nevertheless, do not invest what you cannot afford to lose.

By Edward Richardson
No widgets found. Go to Widget page and add the widget in Offcanvas Sidebar Widget Area.