From the beginning, there was no correlation between the crypto market and the stock market. This is the first time the crypto market and stock market have a correlation. But one should not take it for granted to hedge crypto assets with the stock market. This is an exceptional situation and investors are investing in an irrational manner.
Due to the global pandemic, the crypto market especially bitcoin has gone down to a very low level. The value of bitcoin has gone down to nearly $4000 from $10000 in March 2020. However, it again plunged up to nearly $10K and it will go beyond in my opinion. I will share some more information to reinforce my views on investment in bitcoin. In this article, I will share why it is the right time to invest in bitcoin.
Why It Is the Right Time to Invest in Bitcoins
Everyone wants to have some bitcoins in their digital wallet as it is the most valuable digital asset. Many people are not sure whether or not this is the right time to invest in bitcoin. Well, to be honest, investing in any crypto asset is highly risky and you should be prepared to take the risk before investing.
However, in my opinion, this is the right time to invest in bitcoin, and here are some data to support my views.
Google Trends Suggests to Buy
According to Google Trends, people are more interested to buy bitcoin after the economic crash due to the coronavirus pandemic. This shows that when more people buy something the demand will rise and when demand rises with a constant supply the price will definitely rise.
Legalization of Bitcoin is Increasing
Due to the complexity of blockchain technology and the initial fear of fraudsters related to Bitcoin, many countries banned the usage of bitcoin. However, the legalization of bitcoin has now increased and more countries are joining the rally. This shows that the demand for bitcoin will increase in the near future.
Bitcoin is Becoming Stronger
Well, despite large speculation, the crypto market is getting more crowded every day. The good news is that investors are more interested in bitcoin and the value is increasing. Further, institutional investors are also investing in bitcoin and in other crypto markets. So the value of bitcoin is going to increase in the future.
No doubt, cryptocurrency is not going to replace the traditional money in the near future. But those people who want a liberating monetary system are adopting the alternative financial system. The government is also taking regulatory measures to adopt bitcoin as a mainstream of currency system.
Greed and Fear Index Suggestion
The greed and fear index suggest investing in bitcoin due to the global pandemic. The crypto market is volatile because emotion plays an important role. In this situation, greed and fear index suggest a buy for bitcoin because of the following suggestions.
- Extreme fear suggests buying because investors sell-off and the value decreases to a very low value. Due to the pandemic investors gave up their position and the value of bitcoin has gone down to $4K form $10K. So this was a few weeks ago, many investors are holding it even the value has gone down to that position.
- Extreme greed also takes the value of bitcoin to higher value because of too much buying. After the value of bitcoin has regained its previous level, investors are now greedy whether it can boom like 2017 so it is the right time to buy bitcoin.
Both greed and fear suggest that the value of bitcoin is going to increase, so this is the right time to invest in bitcoin.
Bitcoin Halving in May
Bitcoin halving has always a positive impact on its value. Despite the pandemic, the most awaited event of bitcoin has undergone successfully. Every bitcoin halving in the past resulted in an increase in the value of bitcoin, so this year’s halving has also supported the rise in the value of bitcoin. Visit bitcoin era software for more information on bitcoin investment.
Finally, I hope the coronavirus pandemic has driven many people to look at bitcoin as a safe and the best alternative investment option. As I mentioned above, bitcoin plunges up to its previous value and remained at its own range. With all of the above data, I can say that the future of bitcoin is bright. Please share what’s your take on this.