Bitcoin Takes a Roller Coaster Ride
The bitcoin price has been on a roller coaster. How can one invest when it is in this state? There is a way to invest in bitcoin that takes advantage of the volatility without costing a lot of time.
Bitcoin price corrects as traders realize gains
The bitcoin price has stopped its rise and has started leveling off. After breaking the $20,000 mark in mid-December, bitcoin experienced a continuous rise that saw its value double to $40,000 by January 10. But was the rise too sudden? In the following days, the bitcoin price dropped to $33,000, only to then rebound to $39,000 by noon on the 15th, showing repeated losses and gains.
One of the main drivers of the bitcoin price stopping its climb and leveling off is considered to be an increase in selloffs as traders seek to realize their gains. According to CryptoQuant, which analyzes on-chain cryptocurrency data, the Miners’ Position Index (MPI), which measures the ratio of BTC leaving all miners’ wallets relative to its one-year moving average, hit 2.20 on January 10. A value above 2.0 indicates that miners are favoring sales and 2.2 is the highest level recorded since July 2019.
There is also an analysis showing that bitcoin has lowered in value due to its relationship to the US Dollar Currency Index (DXY). DXY tracks the value of the dollar relative to major currencies. On January 8, the day bitcoin exceeded $40,000, the index fell to 89.83, after which it repeatedly fluctuated before settling around 90.31 on the 15th. DXY is reflecting increasing expectations that the inauguration of Joe Biden as US president will lead to an economic recovery bringing an earlier than expected end to the low-interest era. For bitcoin, on the other hand, low interest rates are considered a positive factor as they represent an influx of cash into the market that induces price increases.
Will the bitcoin price rise? Volatility is high
So, what will happen to the bitcoin price now? While bright and somber outlooks are currently being voiced at the same time, the one fact they share is that bitcoin’s price volatility is high and that it will remain high in the future.
Michael Hartnett, the chief investment strategist at Bank of America, wrote in his weekly report on the 7th that “the dramatic rise in bitcoin during the past two years — a surge of roughly 1,000% since the beginning of 2019 — is far greater than the gains for other assets that have enjoyed runups in the past few decades”, adding that bitcoin looked like “the mother of all bubbles”.
In a Reuters interview on the 13th, ECB President Christine Lagarde stated: “For those who had assumed that [bitcoin] might turn into a currency, terribly sorry, it is a highly speculative asset by any account”, adding that the cryptocurrency had been used to “conduct some funny business and some interesting and totally reprehensible money laundering activity”. She opined that “There has to be regulation. This has to be applied and agreed upon […] at a global level”.
BuyUcoin CEO Shivam Thakral struck a very different tone: “The recent drop from an all-time high of US $ 42000 is more than expected and should be simply seen as a price correction. […] This is a healthy pullback which will offer long term price sustainability for bitcoin.”
To protect assets against bitcoin’s high volatility, experts are advising to invest the same way one would in a savings mutual fund following a systematic investment plan (SIP), where small amounts are continuously invested. Thakral stated: “You need to follow the fundamental principles of investing for successful bitcoin trading. Investors who have stayed invested in bitcoin for 2–3 years have made substantial profits from their investments and there is data to prove it. Until and unless you have an urgent expense in front of you, it is advisable to hold bitcoin for the long term in order to generate maximum value from your investment portfolio.”
ZebPay CMO Vikram Rangala remarked that “the best way to safeguard against volatility is to invest a small amount consistently. The evidence is in the numbers: Despite the dips, if you held bitcoin longer than 3-and-a-half years during any period up to now, you had a 99.9% chance of making a profit.”
For those seeking returns in the minimum timeframe
However, even when buying bitcoin in small increments, generating a profit requires paying attention to the market flows to buy low and sell high. Earning money in a highly volatile market thus not only requires investing money but also time. But there is a way of saving time while taking advantage of volatility to profit from bitcoin.
On cryptocurrency asset management platform Haru, professional traders use algorithmic futures market trading and hedging strategies to increase earnings on behalf of users. Haru offers services providing interest on bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Tera (KRT) deposits. Haru Earn and Haru Earnplus are deposit services with different deposit periods and interest rates, whereas aggressive investors seeking higher returns are offered the cryptocurrency fund Haru Invest.
The ‘Earn like the best’ Haru Invest product (BTC) has a 25% interest payout target at maturity when locking up Bitcoin for 3 months. The minimum lock-up period is 1 month, which can be extended if the user wants. Haru Invest only charges a performance fee of 15% of the total profit if the annualized earning rate is at least 15%.
Haru is a trusted digital asset management platform. We provide up to 16% earn rates for monthly deposits of BTC, ETH, USDT, and Terra KRT. What we offer aims to shift a paradigm of investment — investing in crypto can be stable and comfortable, too. Crypto in, more crypto out. It’s that simple.
Official Website: www.haruinvest.com
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