THE PRICE of bitcoin has plummeted by more than 30 per cent over five weeks after its meteoritic rise over the course of 2017. But should you buy bitcoin?
Bitcoin’s price is famously very volatile so it is difficult for analysts to predict what will happen next and if the latest price crash will continue.
Neil Wilson, senior market analyst at ETX Capital, said: “Has the bubble finally popped? It’s hard to see the bell tolling just yet.
“Large price swings have become so normal that it’s hard to decide – we can easily see this market bounce back in very short order.
“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” he told Reuters.
It looks like it’s time to cash in the gains and spend the winnings on a bumper Christmas
Some experts say bitcoin will reach $1 million by 2020. Others have gone so far as to call the digital currency a fraud. Whether you’re in the optimistic group, the pessimistic group, or somewhere in between, there’s a reality check that anyone who invests in bitcoin or other digital currencies needs to hear: Buying bitcoin with borrowed money is a terrible idea.
The biggest bitcoin mistake you can make
While many people have certainly made lots of money on bitcoin, that doesn’t mean the price will continue to go straight up forever. Even if bitcoin does end up with a million-dollar price tag, as some experts have predicted, it won’t get there in a straight line. And if things go sour, bitcoin’s price can drop fast.
Borrowing money to buy bitcoin is the biggest mistake you can make as a digital-currency investor.
‘Healthy Dip?’ Bitcoin Recovers!
Finally, average exchange quotes focused around $14,000, representing a slight recovery for the sub-$13,000 lows earlier today which lasted only briefly.
This is probably the last chance to purchase bitcoin with the “low” price, based on famous predictions of Michael Novogratz and John McAfee, who are still very convinced that Bitcoin price will rise at least for three times more in a near future.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future