Bitcoin rules the cryptocurrency world and is a household name for many cryptocurrency investors. Bitcoin is the world’s largest virtual currency, and after a recovery in 2023 and a rough year in 2022, it has remained stable at around $39,000 to $45,000 this year. Investors are hoping that Bitcoin will continue to perform well and return to above $60,000. Macroeconomic and positive inflation data.
This guide by Forbes Advisor India explains whether investors should run a mile or be hopeful about the coin when Bitcoin was trading 50% below its all-time high at the beginning of the year. are doing. However, looking at the current market, BTC is increasing in value and as of February 7, 2024, he is trading at $42,917. Let’s take a closer look.
Please invest carefully.capital is at risk
How is Bitcoin performing?
The new year of 2024 has been stable so far and no cryptocurrency crash has occurred yet. 2023 was a tumultuous year for the cryptocurrency Bitcoin (BTC). In January, the first month of this year, BTC was trading as low as $16,000, but in July 2023 it hit a high of $31,000, bringing the market capitalization to around $607 billion since the beginning of the year. I was pushed up. At the end of the year, it showed stability and growth, maintaining a level between $39,000 and $45,000. As of February 7, 2024, BTC is worth $42,913 with a market cap of $841.76 billion.
Stubborn inflation and unstable macroeconomic conditions in countries such as the US and UK have pushed BTC below the $26,000 level. Current interest rates are between 5.25% and 5.5% after the rate hike by the US Federal Reserve, with Fed Chairman Jerome Powell saying the fight against inflation will continue until interest rates fall to 2%, and details on inflation. Bitcoin may continue to be under pressure as it emerges.
Despite all these factors, some crypto investors believe that this is temporary and that BTC will continue to trend positively in the coming days as the long-awaited “halving” event approaches. I believe that it will continue to show. This event will reduce BTC mining rewards by 0.5 percent, which could lead to upward momentum for Bitcoin.
Bitcoin price fluctuation (1 month data)
As of February 7, 2024:
After the deadly crash in November 2022, Bitcoin hovered in the range of $16,000 to $18,000, but has now shown a significant recovery, reaching an all-time high of $69,000 in November. Since then, the value is still trading almost 37.67% below. 2021.
But it’s still on the backside. BTC is still trading nearly 50% lower in value since reaching an all-time high of $69,000 in November 2021.
Here’s how the current price of BTC has fallen from its highs over the past year.
As you can see, Bitcoin reached an important level of $31,000, then fell in September, but rose by the end of 2023. It is currently trading at $42,917 as of February 7, 2024.
Bitcoin has experienced ups and downs over the past two years, and it is clear that the cryptocurrency is facing a major downturn. It also witnessed the U.S. Securities and Exchange Commission indicting major crypto exchanges Binance and Coinbase amid accusations of securities fraud and mishandling of consumer funds.
Why does Bitcoin fluctuate?
Bitcoin started 2022 on a positive note, but reached an all-time high by the end of the year. Due to unfortunate events and failures, the price of Bitcoin fluctuated, and over the course of 2022, Bitcoin plummeted from $50,000 to $15,000.
Price fluctuations can be seen in the entire virtual currency market, including Bitcoin. This occurred due to unexpected macroeconomic headwinds and recent impacts in the US banking system. Let’s take a look at various other factors that influence Bitcoin price fluctuations.
- Impact after the Russia-Ukraine war
- Unstable US banking system
- Inflation concerns in developed countries
- Rising interest rates in the US and UK
- India’s strict tax system
- Due to the bankruptcy of the largest virtual currency exchange FTX
The above factors caused the price of Bitcoin to fluctuate across the board. It also played a big role in confusing the mood of investors.
Tips to consider before investing in Bitcoin
Investing in cryptocurrencies is a very attractive concept for people and Bitcoin is a must-have investment when it comes to cryptocurrencies, but you should consider some tips before investing in Bitcoin.
- Investing around 5% to 10% of your entire portfolio in Bitcoin is a wise and prudent choice.
- Treat cryptocurrencies as a long-term investment plan
- Analyze Bitcoin market volatility and invest wisely
- To maximize your profits, thoroughly research the best times to buy and sell Bitcoin.
Considering Bitcoin’s instability and volatility, it’s natural to wonder if it’s a safe investment choice. Bitcoin’s value is entirely based on speculation and is not a regulated form of investment like mutual funds or stocks. It is a great choice to consult a financial advisor who can guide you through the process of investing in cryptocurrencies that best suits your financial goals.
Steps to buy Bitcoin in India?
Once you understand a little about cryptocurrencies and are ready to invest in Bitcoin, the next thing you need to know is how to buy Bitcoin from India.
Step 1: Choose a cryptocurrency exchange and create a free account through the web portal or application.
Step 2: Register and verify your identity via the platform
Step 3: You will see the “Purchase” tab, which has many cryptocurrencies associated with it. You need to click on the link attached to the Bitcoin.
Step 4: Buy Bitcoin through the link and select the payment method like credit card, debit card, net banking, or adding funds in INR format.
Step 5: Once you make the payment and purchase your Bitcoins, your Bitcoins will be stored in your exchange account or your personal digital wallet. You can sell it or exchange it for other cryptocurrencies whenever you like.You can earn passive income by betting
Please invest carefully.capital is at risk
Investing in Bitcoin from India is not as easy as it seems, especially given that the Indian government has a strong interest in regulating the cryptocurrency market and discouraging active investment. If you’re interested in exploring Bitcoin as an investment vehicle without being daunted by compliance, make sure you haven’t used up all your life savings and are well diversified. Thorough research and actively tracking cryptocurrencies traded around the world can help you stay hedged.