The arrival of a tightening of global monetary conditions will be a test for stores of value like Bitcoin and gold. In the case of Bitcoin, it will be a key day where it will be defined if it is a speculative market as its defectors assure or really allows to hedge against a market with volatility and uncertainty.
“In recent times, news about global crises, inflation or renowned companies on the verge of bankruptcy abound, causing people to sell their positions due to distrust of the global financial market that directly impacts the cryptocurrency industry for being the newest . Generally investors who have just entered the ecosystem tend to sell their positions in the face of negative news, or sell to buy back lower and thus try to obtain more units of the asset. This type of strategy sometimes does not go as planned and most people end up buying at a higher price and obtaining fewer units, “he said. Santiago Di Paolo, community and research leader in Lemon consulted by Ambit.
From its all-time high of around $ 68,000, Bitcoin is down more than 30%. Ether, has followed the same line but with a smaller drop, around 20% trading to date at $ 3,800. “As the Federal Reserve is expected to accelerate the rate at which it reduces its bond buying program and signals faster rate hikes next year, cryptocurrency prices are likely to see more turmoil in the coming months.” Jesse Cohen, a senior analyst at Investing.com, said in a report published by Barron’s.
But not all expectations are negative: Some argued that the Fed meeting may not necessarily lead to a further recession for major cryptocurrencies. “If the Fed surprises the market and slows the pace of the taper, Bitcoin is likely to enjoy a very quick relief rally,” wrote Matt Blom, global head of sales and trading at crypto exchange Eqonex, in the news. Tuesday notes.
With a Bitcoin trading at $ 48,000, the opportunities are to buy at a lower price to make a profit in the future. The predictions for 2022 in the leader of the cryptocurrencies continue with a strong upward trend. “Investors who are more adept at Bitcoin tend to hold their positions and buy back at each drop in the price of Bitcoin, since they trust the rapid adoption that the project is obtaining in the industry. From my perspective, Bitcoin has shown to have certain characteristics that position it. As one of the best reserves of value ever created by society, some experts classify it as “digital gold” for a reason, he added.
Matías Alberti, Country Manager de Buenbit Argentina to this medium He assured that investing in Bitcoin is a “conservative” investment “because it is the network with the longest trajectory, the safest and most robust in terms of the time it has been running uninterruptedly” and highlighted that “no less data is that this year the network of Bitcoin surpassed in number of transactions neither more nor less than PayPal. “
A positive balance
“The outlook for the asset in question remains positive in the long term regardless of the announcements that arise, so taking into account the context of the historical peak we have experienced and how the digital currency is being adopted by different countries, entities and companies, we believe that the best thing will always be to draw up a plan that allows you to obtain more units of the digital asset, “said Di Paolo.
Most analysts say that Bitcoin has performed well in 2021 and will continue to do so in 2022: “In the long term, since its inception in 2009 to date, the trend has been clearly upward. If its demand continues to grow as it has done until now, being a finite asset that is known to have no more than 21 million units, it is expected that its value will continue to increase, “they concluded from Buenbit.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
