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Cryptocurrency<\/strong> is a volatile business. <\/p>\n If you see cryptos as a short-term investment and a fast track to becoming richer, your analysis is wrong. <\/p>\n Last week, cryptocurrencies collapsed. However, Bitcoin <\/strong>gained ground in recent days. <\/p>\n The cryptocurrency business is a roller coaster.<\/strong> It has high peaks and drastic falls. <\/p>\n “Massive retracements<\/strong> are always scary, but seasoned investors tend to see them as buying opportunities,” said Mati Greenspan<\/strong>, portfolio manager and founder of Quantum Economics.<\/p>\n Nathan Reiff says that Bitcoin<\/strong> is volatile because it depends on feelings and projections.<\/strong><\/p>\n “Bitcoin’s price fluctuates because it is influenced by supply and demand<\/strong>, investor and user sentiments<\/strong>, government regulations, and media hype,” Reiff published. <\/p>\n “All of these factors work together to create price volatility.”<\/p>\n For example: <\/strong><\/p>\n -China cracked down on banks completing crypto transactions.<\/p>\n -Tesla will not accept more crypto transactions as a form of payment.<\/p>\n -Elon Musk altered the crypto market by tweeting. <\/p>\n These three reasons alter the value of cryptocurrencies<\/strong> and the will of investors. <\/p>\n However, the main clue of volatility <\/strong>relies on its supply and the lack of central bank control. <\/strong><\/p>\n Crypto developers say the added value <\/strong>of all assets is the lack of control from a central entity. However, it is also a curse. <\/p>\n “No central bank or government <\/strong>can step in to support or prop up markets and artificially subdue volatility,” said former director of research for Fidelity Digital Assets Ria Bhutoria. <\/strong><\/p>\n “Bitcoin’s volatility is a trade-off for a distortion-free market.<\/strong>“<\/p>\n Another reason why Bitcoin is so volatile relies on its time of existence<\/strong>. Bitcoin has 13 years of life, <\/strong>it is a young asset that needs more analysis time. <\/p>\n “While a company that went public yesterday in an IPO doesn’t have any history<\/strong>, a company can at least be evaluated on its business prospects, earnings, and cash flow,” Peter Boockvar,<\/strong> chief investment officer at Bleakley Advisory Group commented. <\/p>\n [It’s] only 13 years old<\/strong> and thus doesn’t have much of trading history.”<\/p>\n<\/div>\n (function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0];if(d.getElementById(id))return;js=d.createElement(s);js.id=id;js.src=”https:\/\/connect.facebook.net\/es_ES\/sdk.js#xfbml=1&version=v2.8&appId=160427764002568&status=true&cookie=true”;fjs.parentNode.insertBefore(js,fjs);}(document,’script’,’facebook-jssdk’)); Cryptocurrency is a volatile business. If you see cryptos as a short-term investment and a fast track to becoming richer, your analysis is wrong. Last week, cryptocurrencies collapsed. However, Bitcoin gained ground in recent days. The cryptocurrency business is a roller coaster. It has high peaks and drastic falls. “Massive retracements are always scary, but […]<\/p>\n","protected":false},"author":1,"featured_media":17465,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[37],"tags":[50,195,1774],"class_list":["post-17464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","tag-bitcoin","tag-price","tag-volatile"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/05\/16531467772867.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/17464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17464"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/17464\/revisions"}],"predecessor-version":[{"id":17466,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/17464\/revisions\/17466"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/17465"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17464"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why is Bitcoin so volatile?<\/h2>\n
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