The price of Bitcoin reached an all-time high of $40,000 less than a month after it first broke through $20,000. Since the most recent rally began in October, its value has increased fourfold.
So for professionals and novices, or if you want to become a cryptocurrency expert at the next Zoom Party, you will naturally ask: Why does Bitcoin crash when the price rises?
Bitcoin (BTC) was invented 12 years ago. It is a new type of electronic payment system built on an Internet-based computing network that no one, company or government can control. The reality is that the trading history of cryptocurrency is so short that its asset valuation method has not been tested yet, so no one is really sure how much it should be worth now or in the future.
According to the CoinDesk report, the following are some of the key reasons for the recent rise in Bitcoin prices:
All of this could lead to a huge rebound in the past few months. But will Bitcoin prices collapse? Several analysts told CoinDesk that they certainly can.
As we all know, the price of this cryptocurrency is unstable, and it is not uncommon for prices to fluctuate sharply. The following is a sample of comments made by cryptocurrency analysts and other financial experts on the appearance of the retracement and the possible cause of the retracement.
Just don’t tell them when.