If you want to talk to someone about cryptocurrency, then, most likely, even those who are not familiar with this topic will know what Bitcoin is. This coin is not only the most popular of all cryptocurrencies but also the most valuable. Today, its price reaches more than 57 thousand dollars. At the same time, at the end of last year, the price of Bitcoin was twice lower. The high volatility and unpredictability inherent in the value of this cryptocurrency are its distinctive features, through which Bitcoin speculation can bring both enormous benefits and catastrophic losses to its holders.
At the same time, the unpredictability of the Bitcoin price does not entail a complete impossibility to predict its fluctuations. Like most other assets, the dynamics of cryptocurrencies can be explored through the means of fundamental analysis, focusing on events and processes that can shake the price of a coin in one direction or another. Typically, most leading brokers bring news that can be used for fundamental analysis in a separate section on their official platforms. For example, the NSBroker website has a distinctive “Financial News” tab from which site visitors can get information about the latest events that can influence trading tendencies. Therefore, anyone who understands the basics of fundamental analysis can make predictions about the further development of the cryptocurrencies’ price with a greater or lesser level of accuracy.
Like other assets, Bitcoin is under the constant influence of financially significant events and processes. In recent months, at least two events have shaken the stability of this cryptocurrency. One of them was an official statement from the Central Bank of Turkey in which the institution stated that it planned to stop accepting cryptocurrencies as a means of payment from April 30, 2021. Prior to this event, the value of Bitcoin reached almost $ 65 thousand. After the statement, it fell sharply by almost ten thousand, reaching the level of $ 55 thousand.
Another event that affected the price of Bitcoin after that was the forecast for capital gains tax increase in the United States. Anxiety about the likelihood of such a development of events has forced the price of the cryptocurrency to fall even lower. Finally, the third event after which the price of Bitcoin fell below the previously established level was Tesla’s sale of some of the previously acquired Bitcoins. After this event, the price of the cryptocurrency reached $ 54 thousand and for a long time remained at this level, up until Elon Musk substantiated the vending of Tesla’s coins by an experimental purpose rather than lack of trust in Bitcoins. When it happened, the coin’s price went through a slight recovery.
So what are the predictions about the value of Bitcoin in the near future? The most probable financially significant event that was predicted to be able to jeopardize the position of this cryptocurrency was the actual implementation of the Turkish ban. Indeed, it has somewhat reduced the value of Bitcoin. However, this drop was not as critical as the first one. Meanwhile, the Turkish ban came into force only slightly more than a week ago, which may not be enough time for it to actually influence cryptocurrency trends. Therefore, experts predict that the price of Bitcoin may fall in the near future, up to $ 48,000. However, in the second half of May, it is projected to resume its growth.
To conclude, the future of Bitcoin is influenced by numerous factors. On the one hand, political restrictions such as the Turkish ban reduce its price. Meanwhile, support for cryptocurrencies by large corporations such as Tesla is increasing the value of Bitcoin. If the number of corporate investors in this cryptocurrency continues to grow, its value may reach unprecedented heights in the coming months.
This post was last modified on June 1, 2021 12:32 pm
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