Being a popular investment choice for years, Bitcoin price predictions have been quite common when examining past historical movement. One of the more essential aspects of the cryptocurrency niche is following investments and trying to determine potential fluctuations. To make better investment choices, finding correlating cryptocurrencies that fluctuate similarly can help future Bitcoin price predictions.
How Our Current Economy Shapes the Market
Many will argue that the current economy has a direct impact on cryptocurrency investments worldwide. While this may be true, other factors can also determine how prices fluctuate from day to day. There have been past historical patterns that show a swift bounce back for some investments after a significant economic downturn. Bitcoin price predictions are just one of the many news stories today.
Most recently, the COVID-19 pandemic that is sweeping nations around the world is annihilating the economy, making investors nervous. And while the Dow Jones numbers take a hit, Bitcoin price predictions seem to be showing more favorable than expected.
What is Impacting the Bitcoin Price Predictions?
It’s no secret that the current state of affairs in the world, like COVID-19, has a resulting influence on investments. However, investors must also take into account other outside factors that move the Bitcoin price predictions.
• Bitcoin Halving: One of the biggest cryptocurrency news stories today regarding Bitcoin predictions is the upcoming halving, anticipated in May. When examining past historical data, Bitcoin prices surge before halving events, giving investors hope that a price jump is soon. If investors are correct, Bitcoin could quickly be surging in the market, giving them the numbers they were predicting previously.
• Bitcoin Supply and Demand: Popularity helps drive current market prices of investments significantly because of the supply and demand principle of our economy. As Bitcoin gains momentum, more investors show interest, and as more tokens are wanted, prices increase to meet this demand.
How Accurate Are the Bitcoin Predictions Right Now
Sometimes it can be challenging to navigate the cryptocurrency world. While some financial gurus talk of how investments will bounce back, others will implore complete opposite predictions. This can make Bitcoin price predictions difficult to decipher if you are unsure of who to listen to. Try not to take every projected investment as fact, since some outside deciding factors could sway the price slightly.
Bitcoin price predictions have been dominating news headlines for some time now, but how accurate are they? If you are new to the cryptocurrency market, these predictions could mean the difference in altering your portfolio or not. And yet, seasoned investors currently still place a lot of weight on predictions from finance experts, without too much risk.
The best course of action is to take any price prediction with a grain of salt and examine the source. Without using some common sense, your investment portfolio could suffer greatly and not provide the results you want. By remembering the age-old saying; If it sounds too good to be true, it probably is, you won’t get stung.