There is again a Bitcoin slide. According to a report by the Coinmarketcap, the popular digital currency, Bitcoin price, faced a sharp decline of as much as 5% on Tuesday. It dropped below the key $30,000 level for the first time since it declined on June 22. In this article, we will discuss Bitcoin news today.
Impact Of Bitcoin Slide In The Crypto Space
The value of other digital currencies also fell. Ethereum fell as much as 6%, while the value of XRP dropped by 9%. This negative effect on the valuation of cryptocurrencies brought Bitcoin slide and other coin slides of nearly $90 billion in the crypto market.
This decline comes after Wall Street was hit hard Monday by angst over the current spread of Covid-19 and the threat it carries to the recovery of the economy. The Dow Jones Industrial Average (INDU) crashed about 725 points which denotes a decline of 2.1%. The S&P 500 ended with a decline of 1.6% and Nasdaq was lower by 1.1%.
This skid was followed by the Asian market on Tuesday along with Japan’s Nikkei 225 (N225) declining nearly 1%. The Hang Seng Index of Hong Kong was shaken by 0.8%.
However, Bitcoin was facing a downturn since April 2021, when it was hit by an all time increase of gnarly $65,000. Since this digital currency has declined more than 50% and closely erased all of its years to gain.
Extreme and volatile Bitcoin price prediction is common in the crypto space and will continue to be so. According to a professor from the New York University Stern School of Business,
“The only thing I can expect for sure is volatility. From day one, this has been a risky investment for people.”
Bitcoin has witnessed both major sales off at different points in between and astronomical growth over the last decade. Even though many bulls denote its past performance as an indicator that digital currency will prevail and will increase in the future.
Invest Only When You Are Ready To Lose
The advice given by financial experts to the people who are willing to invest in Bitcoin is to allocate a small amount of their portfolio because of its fluctuating nature.
According to the owner of CoinFlip which is the largest Bitcoin ATM company in the US,
“People should only really invest what they’re willing to lose.”
He further added that people who are near to their retirement, who need money in the near future, or the one who is planning for frequent trade can reconsider Bitcoin as an asset for investment. According to him,
“Maybe there are more opportunities to make money because it’s so volatile, but it can get very addictive very quickly to start trading back and forth. And, most of the people that do that lose money.”
Conclusion
Bitcoin and other digital currencies are having a tough year gripping extreme fluctuating conditions in the recent time. This Bitcoin slide is the result of the massacre at Wall Street. Those who are wishing to invest in Bitcoin should assess the market well before investing. Always invest the amount you are ready to lose. And remember this is a very volatile market so be ready for fluctuations.
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