Bitcoin briefly tipped over $40,000 today following a 5% rise overnight. However, it could not sustain the rise and has now slid to around $38,000. This is the lowest it has touched in the past month. Bitcoin and other cryptocurrency prices have been severely affected by the economic uncertainty and the situation in Europe.
The price movement today suggests that the situation is not improving. Several factors have been identified fr the brief surge in Bitcoin prices. One of the largest was Elon Musk’s takeover of Twitter. He is an avid crypto fan and the deal had a confident impact on the whole market, including his project, Dogecoin.
Dogecoin led the pack and its latest gains propelled the pet crypto asset into the top-10 crypto going by market share.
Another positive input was the major news that a retirement fund might permit investors to invest Bitcoin in their 401(k)s. The largest retirement plan in the US is Fidelity Investments. It has been informed that its crypto offerings will become available by mid-2022.
Terra’s LUNA also performed well while Ether copied Bitcoin and failed to hold onto major support at $3,000.
An Uncertain Time For Investors In Bitcoin And Other Cryptocurrencies
Though many had hoped that a new rally would start when BTC briefly passed the vital $40,000 mark. Cryptocurrency prices are normally extremely volatile at present and this risk is part of a potential for high gain.
But this prolonged dig in the prices of Bitcoin is proving to be stressful for the market, especially for those who have recently entered the crypto market.
Both the risk of increased regulation from the Federal Reserve and the European conflict continue to weigh on Bitcoin prices. The best decision at present would be to wait out this and other price dips in the short term. Looking at investments from a lens of five to ten years helps keep an even dramatic slide in prices in perspective.
