HBitcoin and bitcoin prices are dropping and some experts believe they may drop further.
In the past 24 hours, the value of the two major cryptocurrencies has dropped by up to 10% with Bitcoin hovering around $31,000. Ethereum is around $2300.
However, crypto expert Wendy O noted in a video that the depreciation of the first cryptocurrency to appear on the scene could drop below $30,000, something we haven’t seen since July last year.
Hard days for Bitcoin
“Bitcoin likely rebounds to $35,000, but unless we break the trend line around $37,000, I’m thinking about its value at $29,000 in the coming weeks or week.,” he asserted.
Macroeconomic uncertainty rocked the cryptocurrency at the start of the week and bitcoin reached its lowest level in more than a year.
Like the stock market, the cryptocurrency world has also given up since last week after the Federal Reserve announced the largest interest rate hike in more than two decades.
The massive drop in Bitcoin is just a reminder to investors that crypto assets come with additional risks and volatility, especially during times of economic and political uncertainty.
To this day, many investors who chose last year to get into the cryptocurrency space are losing out.
Another example is Ethereum and its tendency to keep pace with Bitcoin, which has fallen by 18% in the past week.
Caution about investing
Under this scenario, most financial experts recommend investing less than 5% of your total portfolio in cryptocurrencies.
As against, they urge people to save for emergencies, put money into a retirement account or pay off high-interest debt.
However, for those who have already invested their savings in cryptocurrencies such as bitcoin, it is advisable to wait for them to settle down a bit, because getting rid of them at this time will represent a greater loss.
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