[{"category":{"name":"Trending News","exported_url":"trending-news"},"id":"9002f044-d4f8-4f21-bb89-da2aaaa896f4","updated_at":"2024-06-23T17:27:46.435+00:00","account":{"firstName":"Hamza","lastName":"Malik"},"description":"Learn why Bitcoin prices have dropped and what this means for the future. Discover major investment moves and stay updated with expert insights!","sapo":"Bitcoin prices have fallen since early June, losing over 300 billion dollars in value. While this worries many investors, experts believe the trend will reverse soon. Big companies like MicroStrategy are buying more Bitcoin, and investment in Bitcoin ETFs is growing. Find out why Bitcoin’s future still looks bright despite the current drop.","title":"Bitcoin Price Trend: Should You Be Concerned? ","content":"

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Bitcoin Price Trend: Should You Be Concerned?

Bitscreener's 30-day cryptocurrency heatmap

Bitscreener's 30-day cryptocurrency heatmap

Bitcoin prices, along with most cryptocurrencies have been on a downward trend since early June. The total value wiped off the cryptocurrency market is upwards of 300 billion dollars. This huge downward trend has worried many investors as well as newcomers to the cryptocurrency market. But our research shows that this trend will soon reverse and Bitcoin will gain value. Buckle up everyone, we are going to go on a rollercoaster!

Price Trend

The highly anticipated halving event this year was expected to drive Bitcoin’s price upwards. Initially the price did rise but then it fell sharply and the pattern is generally downward for now. This is in contrast to the previous halving events in which prices rose sharply due to the simple demand supply principle of economics.

Since halving reduces the reward of mining Bitcoin, in a market with stable demand, ideally it would lead to increased prices.

Long-Term Stability is Evident

Despite the negative outlook, Bitcoin remains as good as an option as any for investors. Some of the major positive developments include:

1) MicroStrategy buys 730 million dollars of Bitcoin:

The NASDAQ listed business intelligence firm bought 11,931 more Bitcoin, costing roughly 730 million dollars, despite the price slump. MicroStrategy now holds 226,331 Bitcoin, or more than 1% of the total Bitcoin supply. This latest purchase shows the confidence they have in their investment and the long-term outlook of Bitcoin.

MicroStrategy buys 730 million dollars of Bitcoin

Source: MicroStrategy

2) Selling pressure from miners:

Most analysts have concluded that the recent halving has led to miners selling Bitcoin. One of the reasons could be that miners with small operations no longer see Bitcoin mining as feasible due to the low reward.

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3) Bitcoin ETF has attracted investments:

A lot of investors have started to invest in Bitcoin ETF, especially as the spot ETF approval and Bitcoin halving took place almost simultaneously. Market analysts calculate that almost 7% of the total amount invested in Bitcoin has been shifted to ETF and this figure is set to rise.

Bitcoin ETF has attracted investments

In January, the market reacted swiftly, with billions of dollars rapidly flowing into these ETFs. (Source: Bloomberg)

This would, in theory, affect the price of Bitcoin in the short-term, as it evidently has. However, Bitcoin ETF is simply linked to the performance of Bitcoin as an asset, so any investment in ETF would automatically mean that investors have confidence in the asset itself.

Bitcoin is here to stay!

In light of the discussion above, it is evident that the price drop is a temporary phenomenon. Bug investors are actually using the low price to increase their holdings and most of the capital flight has been towards other Bitcoin related assets, like Bitcoin ETF. So, the long-term future od Bitcoin appears to be stable and bright.

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Bitcoin Price Trend: Should You Be Concerned?

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