The biggest question surrounding Bitcoin? Price surge or market bubble.

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For a while now we have been noticing great volatility in Bitcoin price, some are becoming winners or some have lost enough. After Elon’s announcement things have drastically changed. 

Now, you’ll be like there is always some sort of big and small change happening, so why are you raising a red flag. The reason to raise a flag is we might be blinded by the bigger number of bitcoin prices and neglecting the bad effect it will cause. 

Let me come to the point, let’s take you bought some Bitcoin when it price was at 50K, now you believe that you have entered the market at right time, and as we have seen that bitcoin price is in bullish market and you will not loss, but sooner or later you might end up at the wrong place. The reason I am saying this is because there is always a hidden power, which can snap you, and bring great trouble.

So, let see what these hidden powers are.

First, if you remember in 2017, Bitcoin reached the $1,000 mark, by the end of the year $18000 and it seemed it will go beyond but what happen Bitcoin had been halved by February 2018, by end of the year it’s price came below $4000, it was not the only huge drawdown, it fell about 49% in 2012.

Second, there are a pair of catalysts that can trigger the decline this year. One the parabolic gain we are noticing, this gain is high and can be seen across other assets as well as, even in other cryptocurrencies, as it is happening there will be a crash either for bitcoin or for altcoins, if that happens, owners who might see losses elsewhere are likely to de-risk by converting BTC to USD.

There’s also the regulatory environment effect that might happen as Treasury Secretary Janet Yellen has publicly raised concerns about cryptocurrencies including Bitcoin.

Of course, Yellen can’t ban trading and send it to zero value, but she can impact the bullish catalyst. 

So, how it can be causing a market bubble.

As we talked about what might cause a crash, let’s talk about what is building up a bubble. 

As we are noticing price change, we should also keep that in mind that, the maximum number for bitcoin investor or trader is among 2% to 3% of bigger name, and in last couple of months bitcoin has seen a great surge in investor, who has just bought it in the fear of being left out. 

As per it, history says it can touch the peak of $300000 and it could last for years and so, but eventually, we should keep that in mind that it will crash over some time, the bigger it gets, the more there will be a chance of bubble burst. 

So, every surge that we are seeing is building the bubble bigger and bigger, the investor should know that before it bursts, the price will go down, and then it will crash. In crypto, it is known as crypto winter.

Your greediness to have more, and more, to win, since the system will reward that, will also cause you to lose it all.

If the bitcoin market crashes it will make turmoil, and many firms like Tesla, service providers like coinbase, Coinremitter, investors, and many online businesses E-commerce that are directly or indirectly connected to bitcoin will have to suffer.

Final Remark

The real reason to write this article is to bring out some facts and some opinion about bitcoin and why it might cause trouble, and somehow people are neglecting it.

As I have spoken about its price surge, how it will change the market, in good ways or bad. Also, there is some hidden power will can and will manipulate its price and true value. 

Over the period there will be great ups and down, might build the existing bubble bigger, and might end crashing.

The bitcoin market is still significant, and its demand is also growing faster. But taking a step back and learning and understanding how it might act in the future and what steps or things to do that can help you to save yourself any market crash.

 

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