Can digital currency actually become like money is now?
The question is valid mostly because right now people are not really using digital currency.
They are buying it.
They are selling it.
They are trading it.
But for the average transaction and most every other one people are still using good old fashioned money.
Just a few days ago the price for BTC was hovering around 30,000 now it is over 52,000.00 as well there have been fast moves up and down.
Just last week the price went all the way down to the low 40s.
A lot of people panicked and sold off quick for what ever they could get.
They lost money.
That is the deal right now and one of the things that was being whispered that caused the fall from nearly 60,000 to the low 40,S was that the stock market closed short along with the bond market rates rising and to top it off, the Nasdaq was off as well.
So, what is different now?
Some of the same things are happening right now.
The Nasdaq was off by over 300 points.
Indicators in foreign markets appear to indicate that economically things are headed down.
But today BTC is up and it is up by a lot.
One of the opinions that was postulated was that institutional investors are now starting to buy into the BTC market.
You might wonder if these deep pocket investors really know what they are doing considering that it is more likely than ever that the Digital Currency market is going to go down.
March is and has been a month where BTC and other coins have traditionally taken a big dive.
Along with the indication that the stock market is headed down you might wonder why are these investors buying heavily at such a high price.
Naturally there is this idea that BTC could surpass 100,000 this year.
However, that is just an opinion and in reality it is hardly based on hard science or even good research.
It is obvious that the FED is against BTC.
The SEC is against it.
So, again the question why are these big institutions ready to spend big money when the market is up?
IF as in the past we see a correction then these guys are going to be in some deep pit in the middle of a deserted factory.
So, what is likely given what we know about how things have gone in the past and how it is looking right now?
It is possible that over the next few days we could see a return to the low 40,000 range. Probably around 44,000 to 46,000
So, now is not really the best time to be buying into the market because it is not going to stay at this level.
It took about 8 hours the last time that the Nasdaq took a dive for the BTC market to also take a dive.
So, We are in the first hour since this indicator presented itself.
As Well, markets overseas are showing signs of a sell off. I guess you could say that people are investing in BTC. Over the Stock Market. But that does not really make sense. IF as was put forward that people moved away from BTC in favor of bonds.
No, everything points to a decline and it is likely that it will make its way back up to this level again but it is probably going to take about three weeks to do that.
This is not financial advice, it is not really even an opinion just some observations. As with any market move, you should consult with a professional that you trust, (perhaps not your broker, LOL) All Jokes Aside, it is looking like we are in a bubble at least for now.
In the future things might change.
For now BTC and other Cryptocurrency remains very risky and to validate that idea all you have to do is google I lost my bitcoin.