Bitcoin Price Historic Crash – Will It Fall Further?

In the last week of Dec 2020, bitcoin was trading around 179% above its average price. This was over the last 7 months. Then there was a downfall of around 20% in the second week of Jan 2021.

In this post we will see about the recent Bitcoin volatility, its price prediction, history and how to buy BTC.

Bitcoin price today in USD

1 bitcoin = 33,691.80 USD

Likewise, bitcoin price in India is

1 bitcoin = 24,63,591.58 INR

Disclaimer: This data is as of 1st February 2021, 1:59 pm UTC and provided by Coinbase for Crypto currency and Morningstar for Currency. Not to be assumed as suggestion for any buying or selling and will vary as per time and market conditions.

Bitcoin price prediction 2025

If you have any kind of investment in bitcoin, one question you might have is will bitcoin crash? Most market experts, investors and analysts are bullish on bitcoin.

They are positive on the long-term price targets. Some even exaggerate that it may even go into seven digits.

As per analysts from Bloomberg Intelligence, they have set Bitcoin price prediction 2025 at $100,000. This is based on the upward movement of demand and supply.

Another forecast says Bitcoin could reach $146,000 in the long run as it competes with gold. Also if the change in the digital asset is enough to pull more institutional investors as per one of the leading investment bankers. They however mentioned that in the short term there could be a downtrend.

Note: Please read the disclaimer at the end of this post.

Learn Bitcoin concepts
Bitcoin Basics – Part 1
Bitcoin Basics – Part 2

The above articles contain Bitcoin concepts like

  • Origins
  • Demand and supply
  • Wallets i.e. Bitcoin clients and addresses
  • Bitcoin network and transactions
  • Mining

Hence go through them to have a solid understanding of BTC.

Bitcoin price history

BTC was up around 110% – 120% and that too in around 20 odd sessions. This rate of return was around 3 times that any stock in the tech sector had witnessed.

This digital crypto currency’s price history is that it has increased around 900% from 2018. It also dwarves the gold boom in the 1970s.

Financial analysts are of the opinion that the rally up till now was untouched by the coronavirus pandemic. Since March 2021 bitcoin fell around 26%. This was on the second week of February 2021.

What is the reason for this sudden price rise and fall?

It is being speculated that some of this is due to unexperienced and new investors entering the market for the first time and investing in bitcoin. Then again there is panicking when the price starts falling. Hence, both fear and greed is driving such a volatility.

Not only the new comers, but there are even experienced Wall Street investors who have taken the crypto currency route. This is an indication of bitcoin’s investment by big institutional investors.

One more reason for the bitcoin price drop as well as for other crypto currencies, is the regulatory developments and constraints based on the country.

For e.g. Any kind of ban on crypto currencies, crypto payments or gateways by any country’s government could be very disadvantageous to the many Bitcoin price predictions out there.

Another fact is that like other crypto currencies, bitcoin is also a software part. And any software can have bugs in its code.

Should I invest in Bitcoin?

Initially the investors of bitcoin did not use it as an asset. But in some time a lot of exchanges started to flourish and hence they turned BTC into an asset.

But traditional experts of investment are very cautious and don’t recommend bitcoin as an investment. This is because they do not see fundamental parameter in this asset that can drive its price.

Also it is a fact that the price is mostly driven by demand and supply. Hence you can consider it as an alternative digital currency but you have to be very careful in case you decide to go for it.

How to buy Bitcoin?

  • The first and foremost step is to download a bitcoin wallet. This is a place where all your bitcoins will be stored and can be used for transactions.
  • You can then buy them by traditional methods of payment such as a bank transfer, debit or credit card. Note that there will be a KYC needed.
  • Using above payment modes you can purchase BTC on exchanges. They then will be sent to your wallet.
  • Being a crypto currency, this has a lot of price volatility. Also there are tax and legal constraints in its transactions based on your country, hence you need to obey the legalities.

Is there any minimum amount needed to buy BTC in India?

If you think the value of a bitcoin is very high, you don’t have to buy one whole of it. Since its smallest unit is the Satoshi i.e. 0.00000001 BTC, it is divisible by 8 decimal digits. So you can invest in a lesser amount.

As of today 1 BTC = 12 lakhs INR (approx. price and is subject to change) hence your can start with buying a fraction of it. Though it depends on the exchange, but the minimum amount required should be around 500 INR for investing in BTC.

Note that this is not a recommendation but an excerpt from many of the crypto currency magazines.

How to buy BTC in India?

BTC can be bought from some of the Bitcoin apps. There is CoinSecure, Zebpay, UnoCoin, etc. How to choose the correct platform is a whole R&D to be done by the individual trying to invest in BTC.

Legal implications of buying BTC in India

The Reserve Bank of India in 2018 had prevented banks and other regulatory authorities from dealing in crypto currencies like BTC. In the same year some time later, there was another affirmation to this order by the Supreme Court also.

In 2019, the Supreme Court then reversed the ban. But what this means is that there are no regulations, guides or rules for resolving any disputes while dealing in BTC.

Update – Feb 2021

On January last week 2021, the Government of India announced that it will be introducing a bill called as the Cryptocurrency and Regulation of Official Digital Currency Bill. This would be announced in upcoming budget session.

What are some other crypto currencies like Bitcoin?

As of today, there are numerous crypto currencies out there which are similar to Bitcoin. Some of them are

  • Ripple
  • Litecoin
  • Ethereum
  • Namecoin
  • Zetacoin
  • Quarkcoin
  • Peercoin

How You Can Own 1000 Bitcoins and Still Be Poor?

A particular programmer living in San Francisco, has now only two attempts left to try out his password. This password is worth about $220 million as of second week of January 2021.

The password will help him unlock a hard drive which contains the private keys to his digital wallet. That wallet holds around 7000 BTC.

According to many crypto currency data firms, BTC worth $140 billion as of Jan 2021 happen to be lying unattended in locked up wallets.

This reminds us of the crypto currency’s unusual nature. Due to such happenings, many people are unable to unlock their Bitcoin fortunes because of forgotten or lost keys.

Bitcoin Price Chrome Extensions

If you are interested in tracking the bitcoin price real time, then you can try out some of the Bitcoin Price Chrome Extensions

Many other extensions are also available for tracking other crypto currencies like ethereum price and ripple price.

Summary

As we saw in this post, BTC is in the initial stages of volatility. Also there is a lot of speculation but a positive one on the realistic bitcoin price prediction.

Whether there is a bubble or there is one in the process of forming will only be known with time. But market experts say that it will be similar to some of the previous bubbles the world has witnessed in the past.

In case you have any views on BTC whether positive or negative, let’s discuss in the comments section below.

Disclaimer: All data on this post is a collection from a variety of financial websites, magazines and stock news. It is not meant to be a considered as a reliable source for buying or selling any kind of security. There will be no liability for loss or harm of any kind.

Hitesh Boricha

I have a little over a decade experience in the IT industry. Having worked in various roles in this industry, I am passionate about technology.

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