For those who are in the crypto markets for a very long time know very well about how the price of Bitcoin keeps going up and down. In the last few years, we can see a full upward trend for Bitcoin and despite many altcoins that have picked up speed, Bitcoin is still a wonderful investment for many people because they believe the demand for Bitcoin will not go down.
Huge demand for Bitcoin
There will always be a huge demand for Bitcoin. One of the biggest reasons is that many altcoins are still considering Bitcoin as their role model and even the market is operating based on the price of Bitcoin. Many altcoins have Bitcoin as their primary pair. If the cost of Bitcoin goes up or down, this trading pair also affects the price of altcoins.
The demand will always be there because people think that Bitcoin is a pride cryptocurrency and they have to hold a decent amount of Bitcoin with them. Most of the people who buy for pride don't usually sell them in the market creating an upward trend for bitcoin. Even if people want to trade this in the market, they are doing it only on exchanges and whatever goes to the private wallet usually stays there reducing liquidity in the exchange wallets and increasing the demand for Bitcoin.
Bitcoin is still a good investment
This year Bitcoin had its peak value even before the Bull Run started. There was a decent increase in the price of Bitcoin but not the other altcoins so we cannot call this a complete bull run. There is also a big doubt about the pump in the value of Bitcoin because of the war that is happening. Many people say that it is affecting the crypto markets.
For people who think about the long term and not about all these short-term movements, Bitcoin is still a good investment from my perspective. I used to have close to 1 BTC when the price was around 3k back then. I sold all those coins and bought Hive believing it would be a great investment. I still think it can be a good investment but altcoins have not started pumping yet.
I think Bitcoin is a good investment because the supply is limited and people can buy only a certain amount of Bitcoin. As I said earlier most of the Bitcoin that is bought goes to private wallets reducing the supply or liquidity to a greater extent. This way demand increases and the price keeps going up.
After the halving event
It was expected that the price of BTC would slowly go up again after the halving event because that has been the trend in the last few halving. This time it was a bit different because BTC had a huge pump even before that. Nobody expected BTC to hit and go over the previous all-time high value. In the next good market, BTC is expected to cross 100k and move up further to reach 150k at least. Maybe there can be some selling pressure at that point making it hard for the market to keep up. But overall the trend will always be up no matter how many years pass.
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Posted Using InLeo Alpha
