Investors bought bitcoin because there is nothing else
How to consider bitcoin rate decrease: as a logical rollback, which should be used to buy, or as the end of the uptrend? Leonid Delitsyn, an analyst at FINAM, answered Fortrader magazine's question.
- Jim Cramer, the popular host of the television show Mad Money, recently reported that he bought bitcoin at $12K and sold it at $64K and paid off his mortgage. I wouldn't be surprised if, after such a good deal, CNBC extended his contract on the show for years more. Kramer, on the other hand, could have sold the house, bought the cryptocurrency at $64K and one day sold at $12K. And take a place of honor among the audience. Surely someone has already done approximately that.
Let's look at this story formally. In December 2017, the price of bitcoin was rising to $19.8 thousand. If Kramer bought the cryptocurrency after it collapsed, after this peak value, then he did it after the price fell 37% from the peak value. Considering that the last peak value was $60K, the next farsighted Kramer will buy bitcoin at $38 thousand, and one day he will tell later if he wins.
Bitcoin exchange rate todayIt makes sense to buy something when the price goes down, if you can be sure that the decline is short-term, and fundamentally, the asset has great prospects. I am not sure that the cryptocurrency ban in Turkey is a signal of bitcoin's tremendous prospects. The reason for the demand for cryptocurrencies is that there is money and investors have no ideas. Cryptocurrencies are not the only ones that benefit from having money. In the stock market, they are also new issuers with no profits, new pharmaceutical companies with no revenues, and blankchecks (SPACs) - new public companies with no business. In this they are like cryptocurrencies - they are such a sterile future, unburdened by the present. Now it is hardly possible to predict the outcome reasonably, one can only either believe or not.