Nowadays, who doesn’t know cryptocurrency investment?! Various groups, ranging from investors, businessmen, artists, to celebrities have started to become aware of this cryptocurrency. What needs to be understood is the risks before plunging into the cryptocurrency world.
Even though in April, most cryptocurrencies, including Bitcoin, were on the rise. Who would have thought that in just one month, almost all of them experienced a drastic decline.
Quoting from Bloomberg on Thursday (20/5/2021), Bitcoin fell 9.7 percent and traded at US $ 39,270 on the Hong Kong stock exchange.
Bitcoin movement due to Market Driven
Bitcoin prices entirely moving due to market driven. This can be seen from the comments of CEO Elon Musk regarding the sustainability aspect of Bitcoin which wiped out the profits from this asset in just a few days.
The rise must be due to market sentiment, while the downturn is also likeable. There is no need for any reason,
with this pattern of movement, investors who intend to invest in Bitcoin should understand very well the risks that exist in this instrument. The reason is, market conditions and the risk of crypto assets with other types of assets are very different.
New Investors Tend to Follow the Trend Only
Investor that goes on Bitcoin does not yet reflect a comprehensive understanding of the types of assets crypto.
According to him, new investors tend to follow trends so that they do not take into account the risks that may be borne.
When the price went up again, this new investor even dared to enter. Now, when they are down, they are afraid. It looks like investors will give up on crypto assets like Bitcoin.
The current negative trend in crypto assets has not moved from a problem of legitimacy. In addition, the price spike on Bitcoin caused increased attention from regulators in the world.
With this increased attention, the potential for tightening regulations on the world’s crypto exchanges will also be even higher. This has an impact on limiting the capital gains that investors will get.
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