On December 21st, 2017 we began to see a long overdue correction in Bitcoin’s value. This is not the first time this has happened and certainly won’t be the last. What you need to know about why Bitcoin’s value is decreasing.
Why Is Bitcoin Falling?
We are simply seeing what many others have suggested was coming, a correction. For those that are new to the cryptocurrency world or investment world in general. this is a common occurrence following such an amazing upward price trend. First, let’s take Bitcoin’s value in perspective over the last month.
Bitcoin is still up over 58% over the last month! Those kinds of gains are impossible in most other investment arenas. Still don’t feel good about watching the value hit a correction? Take a look at Bitcoin’s value over the last year.
Bitcoin is up almost 1400% this year! Now, most of you probably were not involved in Bitcoin last December, but if you were then you are used to these kinds of fluctuations. That is an astronomical gain over the course of one year. With those gains brought a lot of public awareness and new money into the space. Many of those new users are panic selling and are causing a larger than normal price drop. Let’s take a look at what we can expect to happen next if we hold on to our current positions.
The Next Move for Bitcoin’s Price?
The great part of investments is there is always historical graphs and trends to look back on to see what can happen next. The same thing can be applied to the future of Bitcoin’s values. Take a look at the below graph.
As you can see from the graph there are numerous times since 2010 when Bitcoin hit new all-time highs and was followed by a large correction. Often times much larger than we are currently seeing. What followed was sometimes a long period of slow growth before repeating itself with a spike and correction. Bitcoin’s value is continuing to follow this trend and if market history repeats itself, now is the perfect time to buy.
What Should You Do?
I am not in a position to give out financial advice and you should all make your own decisions, however, based on historical trends now is a great time to enter the market. If you were waiting to get involved because you were scared by the price and worried it would come down, this is your chance! I am going to be purchasing a large of amount of Bitcoin over the next week or so but I expect this price to stay low into the first few weeks of the New Year. If you hold Bitcoin currently and were considering selling, I hope this article will talk you off the ledge a little to see this is not the end of Bitcoin. It has happened before and will happen again, but Bitcoin will continue to rise as more people adopt it and become educated about its benefits.
What do you think the next all-time high will be? Are you holding, selling, or buying more during this correction?