Bitcoin Is Showing Signs of a Bottom

Bitcoin (BTC-USD) is functioning in a fearful climate. Simultaneously, it has showed evidence of resiliency and continues to be useful. Your risk profile is critical, but now is a good moment to make a decision.

Have Your Worries Been Called Off?

Investors in Bitcoin were exceedingly concerned only a few weeks ago. That hasn’t altered much, with the Crypto Dread & Greed Index now displaying what it considers to be high fear.

However, there is cause to be positive based on price activity. When I say hopeful, I mean that more extreme viewpoints are becoming more rare. Guggenheim Investments’ chief investment officer Scott Minerd, for example, has said that Bitcoin may fall below $8,000. It’s worth noting that Minerd predicted Bitcoin would reach $600,000 in February 2021.

The point I’d want to make concerning price behavior is that BTC momentarily fell below $28,000 and has since risen steadily over the last three weeks. That implies that the worst is gone, and that dismal forecasts like Minerd’s are excessively pessimistic.

In any case, speculating on the price of Bitcoin is a dumb endeavor. Its future trajectory is heavily reliant on usefulness.

The more places Bitcoin can be used as currency or credit, the better its long-term prospects. Fortunately, Bitcoin will be accepted at around 3,000 new establishments. Chipotle Mexican Grill (NYSE:CMG) will accept cryptocurrency payments via Flexa. Bitcoin is a widely held cryptocurrency that figures prominently among its payments, thus the revelation is a move in the right direction, as commentators have long urged for improved usage.

Many companies, including 14 significant firms, accept Bitcoin.

Altcoins Aren’t as Good as Bitcoin

What isn’t at this point, after all? Terra (LUNA-USD) just plummeted, shattering investor confidence. It has now been resurrected under the leadership of founder Do Kwon. However, I believe it is fair to say that altcoins have lost a lot of their attraction at this time.

However, it’s difficult to tell what lessons were learnt. Do Kwon is demonstrating that his supporters believe in him, and money is coming back into his initiative. Simply stating that something is tied to the dollar seems to be insufficient. Maybe it doesn’t make a difference. 

Because capital drives everything, it may be all that counts if supporters will invest their money into Terra.

Anyway, it’s crucial to remember that, although Bitcoin fell, it didn’t suffer nearly as much as other currencies. It looks to be much more stable than other cryptocurrencies. It has distinguished itself as a digital asset, which is still significant.

What Should You Do With Bitcoin?

At this time, I believe there is still too much volatility in Bitcoin to invest in it. However, when it comes to money, I’m a very cautious person. The fact that BTC seems to be remaining over $30,000 is a good indicator for individuals who are less risk-averse.

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