Economy

Bitcoin: Course history shows difference to crash 2018

Bitcoin.

Nik Oiko / SOPA Images / LightRocket via Getty Images

The stock markets closed around the turn of the year, but with crypto currencies and above all Bitcoin there is an asset that is traded 365 days a year, 24 hours a day. Around the turn of the year, the flagship cryptocurrency Bitcoin rose rapidly to just under the $ 35,000 mark. As a reminder, it wasn’t until December 16 of last year that Bitcoin rose above $ 20,000 for the first time – since then, things have been going up almost unchecked.

Until today, there has been a short but severe setback for a long time. At its peak, Bitcoin fell to $ 27,700. Apparently, numerous investors realized their profits after the rapid increase. But the decisive factor was the reaction of the cryptocurrency after the setback, because violent fluctuations and strong swings in one direction or the other are not uncommon with Bitcoin and Co.

Bitcoin / US dollar intraday chart

Bitcoin / US dollar intraday chart

NewsABC.net

But the setback did not mean that the latest rally was sold off again, on the contrary: There was a significant rebound. Bitcoin rebounded to around $ 32,000, which is a clear difference from the 2018 crash. Back then, Bitcoin climbed to around $ 16,000, only to crash to $ 3,600 in the following months.

Bitcoin: Investors use setbacks to buy immediately

Today the situation seems different, also judges analyst Timo Emden. “The speculative interest is strangely high. Numerous investors wait behind the sideline for setbacks in order to be able to enter in return. The appetite for risk doesn’t seem to be tamed, ”he says in an interview with NewsABC.net. The expert suspects limit buy orders for important brands, such as those in the range of 28,000 US dollars, which could have resulted in the rapid price recovery. These orders are stored in the system and automatically executed when a value reaches a certain price.

More and more investors and experts see a significantly increasing Bitcoin value in the long term. The planning of the US payment service provider PayPal was particularly decisive for this. In October, the group announced that customers in the USA will in future be able to buy, sell and store bitcoins via the platform. At the beginning of next year, it should also be possible to pay with cryptocurrencies at retailers using PayPal. If such a big name becomes active in the sector, acceptance also increases.

Nevertheless, Emden warns that the air could gradually become thinner after the recent rally for Bitcoin. “The risk of potential setbacks increases. Overall, I expect an even greater consolidation of around 20 to 30 percent soon, ”he says. The bargain hunters are probably already preparing for it.

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