Come September, Bitcoin experiences what can be termed as “blues”. The volatility around the currency seems to be peaking every year during the month and this year isn’t any different. However, there’s some cause for concern, even among experts who have weighed in on the subject.
The problem dotting Bitcoin in recent days is two-pronged. For one, the currency’s experienced a price drop of slightly over 9%. Its price has also dropped to lower than $53,000 as a result. This price drop, then, is also the second reason for its current woes. Despite the reduced value of the currency, it has, seemingly, come up against a wall with no takers vying to purchase it.
Experts have now warned that if this continues, Bitcoin could be heading for a huge loss that could be in two-digits. If that were to happen, it would be the third time that the digital currency would be incurring such a fate. A decade ago, in 2014, Bitcoin had suffered a similar loss. Five years later, in 2019, it had had a recurrence of such a loss.
Could Bitcoin’s fortunes change?
Additionally, some experts also see the possibility of Bitcoin’s value going further low and settling at about $45,000.
An article published on Trading View quoted a report published by investment organisation 10x Research’s on such an event occurring. In the report, the company’s Research Head Markus Thielen stated, “Bitcoin addresses peaked in November 2023 and sharply declined after the first quarter of 2024. When the amount of Bitcoin held by short-term holders began to decrease in April, while long-term holders took advantage of high prices to exit, it suggested that a cycle top had been reached.”
However, despite the grimness of the immediate outlook surrounding the cryptocurrency, experts have also pointed out that the cyclical nature of volatileness would mean that Bitcoin is sure of experiencing a favourable turnaround in the crypto market.
One aspect that’s seen as a catalyst for this change in prospects is the prospering employment rate in the United States which is currently placed at over 4%. In terms of sheer numbers, the country’s reported an upward trend in jobs by over 1,40,000. Furthermore, the Federal Reserve’s expected rate cuts is also seen as a propellant sending Bitcoin on an upward trajectory again, thus restoring balance to the e-currency’s momentum.
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