Bitcoin Falls Below Rs. 16,00,000: Should You Buy The Dip? – Gizbot
Bitcoin, the world’s most valued cryptocurrency, is riding on a patchy tarmac lately. The digital currency has lost over half of its value in less than a year and is currently valued at Rs. 16,00,000 ($19,000). One of the prominent reasons for the sharp fall of Bitcoin is now linked to the rise in interest rates across the world, where investors are cashing their risky assets such as Bitcoin.
Bitcoin is currently trading at a three months low value. Not just bitcoin, but even Etherium is facing the heat due to an economic slowdown and recession talks. Although Ethereum was expected to see a sharp rise in value, the global cues are currently making everything go down the hill.
Currently, Bitcoin is said to have taken a hit due to a remark by U.S. Securities and Exchange Commission Chairman Gary Gensler on how Cryptos could come around a new structure with extra regulations. Despite having no clear indication of how these new regulations could affect the cryptocurrencies, the market has gone bearish on them.
Matthew Dibb, COO, Stack Funds said, “It’s speculation as to what might or might not happen.” He added, “A lot of the hype has come out of the markets since the Merge, it’s really been a sell-the-news type of event and he further mentioned that given the nervous global backdrop, ether could test $950 in coming months.”
He also claims that “Looking at the landscape right now, both fundamentally and technically, it’s not looking great. There’s no immediate bullish catalyst that we can see that’s going to prop up these markets and bring in a whole lot of new money and liquidity.”
All this indicates that both Bitcoin and Ethereum are expected to further lose their value in the next few months. This indicates that this might not be the best time to buy the dip.