The cryptocurrency market has been struggling for the last few months. Since the last quarter of 2021, the value of many cryptocurrencies has gone down. Terra Luna was the most affected, with its value decreasing to 0. Some factors that have led to this cryptocurrency market recession include the interest rate increase proposed by the Federal Reserve.
Now, the main reason we are here is cryptocurrency investment. Investors have sold their cryptocurrency portfolio in favour of US Dollars and other less volatile assets. This trend has been here for a while and is one of the reasons that crypto prices crashed. But good investors see potential where others see a challenge or failure. While others sell their cryptocurrency tokens, some buy up the tokens and stoke up for the future. According to specialists and financial institutions, the price of Bitcoin is not where it’s supposed to be. They state that the token sells at a discount, and the real value should be way higher than it currently sells. According to JPMorgan, one of the largest investment banks in the world, the real value of Bitcoin should be $38000.
Jurrien Timmer, the director of Global Macro at Fidelity Investments, states that Bitcoin’s real value should range from $40000 to $50000. He also states that the token has the potential to hit $100000 in the next two years after Bitcoin halves. This information should help investors make up their minds. If you invest in Bitcoin at its current potential, investors will make a huge profit when its value rises to its real value. But one thing they should consider is that this might take time.
They should think long-term and see the potential for the coins. The long-term rewards they can achieve from investing in the coin might be motivating enough to incur short-term losses and risks. Regardless, Bitcoin and Etherium will regain their dominance and value. To sum up, considering the crypto market volatility, make sure you have prioritised your finances. Make sure you have enough saved up in an emergency, pay your loans, and have a retirement plan. This will help stabilise you if your investment goes south and you incur losses. Investors should get into crypto for long-term investment, meaning they should have backup plans.
