PRESS RELEASE: What to Know Before Buying Bitcoin after the Recent Declines

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After spending the better part of the year oscillating around the $6,000 range, Bitcoin

-0.90 % plummeted on November 14. Currently, it is trading in the 13-month lows zone. November is recorded as the second worst month of 2018 after these cascading plunges. The value of the entire cryptocurrency market has lost approximately 26%. The worst month on record for 2018 is in March when markets lost 32% in total .

If the trend continues, 2018 is on the way to becoming the first negative year for bitcoin performance since 2011. It is a significantly sharp reversal compared to the 53.8% gains of 2017.

Is it time to dive in?

The value of bitcoin

-0.90 % peaked in December 2017 reaching an all-time high of $19,511. However, it is evident that investors are gradually abandoning the most dominant crypto in the market after that peak. The price has dwindled and after the dismal performance this November, the asset has lost a whopping 78% of its value compared to its all-time high.

It is advisable to wait and see for now since it is not evident how far the bear massacre may continue before buyers return. Investing in the crypto market is not for the faint-hearted since it has no underlying definite value. The assets are worth as much as another person is willing to pay for them.

Finding a Stable Value

It is challenging to state the definite price of Bitcoin at any given time. Experts and analysts have tried in the past to create models to determine the underlying inherent value subject to the investors’ interest and the number of transactions carried out. Nevertheless, none of the proposed models has proven to be a precise gauge of value.

Bitcoin is still considered as a speculative token in spite of the time, money, and effort put into trying to get it into the mainstream.

Speculative token

In the past 12 months, Bitcoin

-0.90 % has lost over two-thirds of its value. This high volatility and loss of value support the argument that it is not an investment but a speculative instrument. Although it seems to have stabilized in the first half of 2018, the volatility has returned. All the positive developments made towards trying to lobby for its acceptance in the mainstream market disappeared this November with the recent plunge.

Although Bitcoin

-0.90 % appears cheap compared to its 2017 historic prices, it does not mean that the asset offers any value. The declines of 2018 may signal that the cryptocurrency’s biggest supporters have lost hope of breaking into the mainstream markets. Thus, further declines may be possible. It is prudent to ‘sit out’ until the prices stabilize again.

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The post What to Know Before Buying Bitcoin after the Recent Declines appeared first on Cryptovibes.com – Daily Cryptocurrency News .

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