2021 has been and continues to be an interesting year for Bitcoin investors. Especially since the beginning of the year, after the spring winds in Bitcoin and all cryptocurrencies, things started to deteriorate in terms of the price of Bitcoin, especially from May.
With this deterioration, Bitcoin prices, which surpassed $ 50,000 in mid-May, reached 35,000 at the end of May and 30,000 in July. Of course, this was not a very unpredictable situation for Bitcoin’s price volatility. For the price of Bitcoin, there have been price movements similar to the price drops experienced in the previous period and it seems that they will continue to do so.
However, the recovery in August after the steep drop after May was a development that made Bitcoin enthusiasts happy. In Bitcoin, which saw the $ 50,000 level in August, this good trend was again seen as the beginning of a bull season.
Still, Bitcoin managed to surprise again, dropping around $ 5,000 in the last week. This was not expected at all. Therefore, it can be said that it had a shock effect on the market.
We wanted to discuss the subject in detail and discuss what this Bitcoin decline means. But first, we would like to talk about a direction where investing in Bitcoin can be done easily.
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What’s the latest at Bitcon?
After seeing AMarkets, which is one of the best platforms to buy and sell Bitcoin, let’s now move on to what will be the latest situation in Bitcoin.
First of all, why did Bitcoin drop last week? Let’s try to understand it.
The first news that could be considered negative for Bitcoin was that Coinbase, one of the largest US-based exchanges in the world, came into conflict with the US Securities and Exchange Commission SEC. The reason for this problem is a recently launched product by Coinbase. With this product, people lend money to those who need cash in blockchain logic and earn interest in return. After the SEC claimed that it is a regulated security and stated that it will file a lawsuit to be subject to regulation, it can be said that the market has a chance to be affected by the announcement made by Coinbase officials on this issue.
In El Salvador, which has officially started using Bitcoin, the application developed for the use of the country’s citizens collapsed, along with the recently announced Bitcoin standard. The application called Chivo was developed as an application to be used by citizens who want to buy with Bitcoin. However, the application suffered a major crash on the first day and the system stopped working. This has caused a desperate appearance in the market, as it is a development that shakes confidence in Bitcoin.
This news, of course, had a relative impact on the price of Bitcoin. However, if we wonder if these developments regarding Bitcoin are the ultimate cause of price volatility, it will not be possible to say yes.
We can show the global selloff as the main reason for this decrease in the price of Bitcoin. The increase in the dollar index and the sales trend that started with the US to Europe and then to Turkey brought with it a general sales trend.
The reason for the increase in this global sales trend can also be stated as the inability to recover economically because stock markets such as the New York Stock Exchange do not like the latest economic situation and pandemic conditions have not reached the level wanted. level. When a similar situation was experienced in Europe, that is, with the signal from the European Central Bank that it would reduce its asset purchases, the drive to avoid risk increased in the market.
This whole global trend can be seen as an attachment to central banks, so to speak, by the markets.
We can predict that these declines will not be permanent. With the recovery in the global markets, the manipulative moves will end and we can say that good times will come for Bitcoin towards the end of September.
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