Bitcoin falls sharply

Ludvig
31.10.2022
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Bitcoin price is falling

For a long time, investing in bitcoin has been prohibitively expensive. For just one bitcoin, you have had to pay close to half a million british kroner. But in recent months, the bitcoin price has fallen. The Bitcoin price has fallen sharply, and it has not gone unnoticed.

Bitcoin was launched for the first time in 2009, but as most people know, it would take quite a few years before it really took off. It wasn’t until 2017 that bitcoin took the world by storm – it was at this time that many people opened their eyes to bitcoin. Today, bitcoin has become the largest and most popular cryptocurrency in the crypto market.

As a cryptocurrency, bitcoin is highly volatile. Therefore, those who want to invest in this popular cryptocurrency have had to keep a close eye on the exchange rate. The purpose of this has been to find out which time is best in connection with investing in bitcoin.

In this article, we’ll take a closer look at what recent times have meant for bitcoin. The Bitcoin price has fallen sharply, but what does this really mean? We’ll find out below!

It is not easy to predict the future – regardless of the investment you make.

What is Bitcoin?

What is bitcoin? At this point, this is probably something most people know, but we’ll include it anyway. After all, a little repetition doesn’t hurt.

Bitcoin is a cryptocurrency that was developed in 2009, but no one knows who is really behind this development. The developer operates under an alias – Satoshi Nakamoto – and no one knows who his real name is. It is still a mystery to this day, and probably will remain so.

The first few years after the launch of bitcoin were quite calm, but in 2017 it suddenly took off. Someone had found out what a good investment bitcoin was, and that led to many wanting to try their luck investing in this cryptocurrency. At this time, bitcoin was still relatively cheap, and there were many who knew good money on the investment.

After 2017, bitcoin has a completely unique position in the crypto market. It is the largest cryptocurrency that exists in today’s market, but in addition to this, bitcoin has also been considered the most popular cryptocurrency that exists today.

Fall for the Bitcoin rate

As bitcoin is volatile (all cryptocurrencies are volatile), it is no surprise that the bitcoin rate has been characterized by large price increases. It’s not unusual either. Cryptocurrency rates are characterized by large price increases in both directions, and that is completely normal.

But in the first half of 2022, the price fluctuations have been of such a large nature that it has been the experts who have closed their eyes. According to one analyst, bitcoin has fallen below the peak of the previous growth cycle for the very first time. At the time of writing, one bitcoin coin costs NOK british . That’s half as much as the “regular” price.

The crypto sector’s first financial crisis

In connection with the price drop for bitcoin, many experts have been interviewed. One of them is Torbjørn Bull Jenssen, who is the head of the crypto company Arcane Crypto. In 2014, he wrote a master’s thesis that specifically dealt with bitcoin, and he has therefore become a natural interview subject in connection with the cryptocurrency.

Torbjørn Bull Jensen describes the price drop for bitcoin with the following words: “It has initiated the first financial crisis in the crypto sector”. He therefore believes that the crypto market is facing its very first financial crisis, and that this crisis is “completely by the book” when it comes to how to define a financial crisis.

Al Jazeera has a segment discussing the price drop of Bitcoin.

Divided Opinions About Bitcoin

There have always been divided opinions about the cryptocurrency bitcoin. Not everyone was impressed when bitcoin took the world by storm in 2017. Some were also very skeptical. Is it really as good an investment as many think it is?

In the years that have passed, many have allowed themselves to be convinced, but there are also many who have remained skeptical. Opinions about bitcoin are undoubtedly still divided, and this is clearly expressed in connection with the crypto market’s first financial crisis:

  • Tor W. Andreassen (professor at United Kingdom ‘s School of Economics): “Bitcoin is like playing with money. It is very complicated and speculative. I’ve tried to understand it, but basically gave up. You can wake up a millionaire and go to bed a pauper. It’s a significant risk – and I don’t think it’s sustainable in the broadest sense.”
  • Silje Sandmæl (consumer economist at DNB): “I have always said that you should be careful with cryptocurrency, because it is risky to enter into something that is not tangible. Krypto sails its own sea, and it is something I would never invest in myself, but people can make their own judgments”.
  • Kyrre Knudsen (chief economist at Sparebank 1 SR-Bank): “If you are to invest in cryptocurrency, you must also deal with the very large fluctuations”.
  • Svein Ølnes (senior researcher): Cryptocurrencies are more resistant to monitoring and confiscation than ordinary money due to the decentralized design. They work directly between people without the use of intermediaries such as banks”.

What does the future of Bitcoin look like?

Despite the fact that there are undoubtedly divided opinions about bitcoin, it is important to see it all in perspective. How does it look now after the rate fell to such a degree? What does the future of bitcoin look like?

Vetle Lund works as an analyst at Arcane, so part of his duties is to keep up with this. He has had to answer a similar question, and he believes that the bitcoin price will drop even more.

Vetle Lund believes that it will perhaps come down to a level around 14,000 dollars, which corresponds to just under 140,000 british kroner. He describes this as a realistic bottom because it will lead to the liquidation of most of the mortgaged positions.

He believes that many crypto investors will be forced to sell their positions as a result of the crypto market’s first financial crisis, so it will be really exciting to follow what actually happens !

Jordan Peterson has strong opinions about Bitcoin’s development:

Author Ludvig

Ludvig har lang erfaring med kjøp og salg av kryptovaluta. De senere årene har han tatt det til et nytt nivå og prøver å leve av kryptovaluta trading. Han følger godt med på markedet og har opparbeidet seg god kompetanse på teknisk analyse mm. Vi er veldig glad for å ha Ludvig med på laget, og er det noe du lurer på angående kryptovaluta er dette mannen du spør!