Bitcoin Price Drops Provide Investment Opportunities
Bitcoin is the most popular cryptocurrency in the world, with the largest market capitalization and the most engagement from investors, including those that are institution – or business-based. Digital gold has created a reputation for reliability for itself, leading to it being considered quite highly among the asset options. However, the BTC price has caused many investors to be apprehensive about the future and avoid making any significant movements, whether buying or selling. Speculative ventures have become unpopular, as short-term holders recorded losses of close to 100%.
At the opposite end of the spectrum, those who chose to rely on hodling, keeping their assets nearby in order to promote value acquisition, have had a much more positive experience. If you’ve been worried about your assets, here are some of the things you should consider.
New Opportunities
Although stagnating and even lowering prices are seldom seen as a positive thing, many investors and analysts have discussed this possibility for the current marketplace. Much of the trouble with the prices was caused by the refusal of the Securities and Exchange Commission to approve the Bitcoin ETF. The decision is now expected in March 2024, causing pressure to pile up on BTC to the detriment of the holders.
The good news is that investors can take advantage of this situation. Trading during bearish markets can be more challenging, but it’s not an impossible venture. Active traders can open short positions and use automation tools in order to make the process more efficient and eliminate the risk of emotional decisions. Since complex markets such as the current one can cause even the most seasoned investors to act rashly and make some ill-advised calls, it’s crucial to take all the precautions you can.
You can also look for platforms that provide you with additional input on the bearish trends and how you should act going forward. Many of the sites offer different approaches depending on your experience, expertise and budget. Preferences and skills come into the equation as well. You can choose pre-designed strategies for mirror trading, use algorithms or opt for customization to create your unique bots and system.
The flexibility is helpful for those who are attempting to automate their short strategies to meet specific price levels. Risk management tools are typically directly incorporated.
SEC Application
There are many different institutions, brokers, managers and providers that have been waiting for the green light from the SEC. A favorable ruling would bring even more retail and institutional money into the cryptocurrency environment. The sector has been steadily growing and evolving recently, and if the regulations allow it, then it could record even more positive results.
BlackRock is one of the principal applicants. The American multinational investment company has sought to become an industry leader in environmental, social and corporate governance. It is the world’s largest asset manager, with approximately $9 trillion under its direct jurisdiction. The company sent an application for a Bitcoin spot ETF in June.
Fidelity is another financial services giant that reapplied right after BlackRock. The corporation first applied in 2021 but was rejected at the time. In July 2023, it refiled for the Wise Origin Bitcoin Trust to be turned into an exchange-traded fund. VanEck has also been seeking approval for a BTC ETF since 2018 as one of the earliest applicants. It had previously withdrawn its application entirely on its own but later rejoined the efforts in July 2023.
ARK Investment Management has been waiting for official approval since June 2021 for its ARK 21Shares Bitcoin ETF. Invesco and Galaxy Digital are in a similar position, as they aim for the introduction of an ETF that is backed by Bitcoin, with Invesco themselves as the sponsor. Several other companies and enterprises have been planning for launches, but the SEC has delayed the decision for all applicants until the end of August.
The Impact
But what exactly is the impact of this decision on the Bitcoin market and price point? It’s a well-known fact that Bitcoin is susceptible to fluctuations and that the prices can be affected by a wide range of internal and external factors. If you want to be successful as an investor, you must be aware of these shifts and what could cause them.
At the end of August, Bitcoin was hovering in the $28k margin, trying to regain its foothold and make a move back to $30,000. However, it dealt with considerable resistance and was ultimately unsuccessful. The SEC’s delay has been regarded by analysts as one of the main reasons for trouble within the market, and the market fell into a slump. Users were discouraged from interacting until new support was regained around $25k.
However, September further contributed to the bearish pressure. The BTC price went below the support level. Since the beginning of the month, the value has regained some of its previous strength, but it remains to be seen if the growth will continue from this point onwards.
Scammer Apprehended
Because digital finance and cryptocurrencies are entirely virtual, all the illegal activities committed with them are online-based as well. Unfortunately, cryptocurrency scams remain a problem, and many investors are unaware of the red flags and what they can do to protect their holdings. Recently, a Bitcoin scammer made the news after it was revealed that he was uncovered and prosecuted due to a joint effort of his victims.
The perpetrator would warn investors about the dangers of online scamming and promise to help those interested to bypass the risks. However, he later stole considerable sums from people all over the world, including those in Canada and the UK. It was later revealed that the online presentations were nothing but a benevolent and well-meaning disguise that aimed to hide a scamming strategy.
Investors should be mindful of any such services. Generally, when something seems too good to be true in the crypto world, it’s because it probably is.
Difficult conditions have tested the Bitcoin environment over the past eighteen months, but it continues to remain resilient.
