Although it has come to a halt, the bitcoin bull run continued for more than 110 days at a stretch till a few days ago. Historical analysis shows that the price of Bitcoin had plummeted to nearly $5,375 on March 9, 2020, from a ‘1 bitcoin to dollar’ value of almost $10,155 recorded on the 3rd of February 2020.
But, on 9th March 2020, Bitcoin started its spectacular bull run. With some not so significant drops in between, the run continued till the middle of November 2020. Its price touched an astounding figure of almost 20,000 US dollars. The increased focus on everything ‘digital’ during the pandemic might’ve charged this bull run for Bitcoin. At least, that’s what the dates suggest.
Over the past few days, the price of bitcoin has come down to a level below US$ 17,000. But, undoubtedly, the long-persisting bull run exceeded all previous bitcoin price predictions. Moreover, when it comes to the recent drop in bitcoin prices, experts believe that it could be short-lived.
Although such a bull run is exhilarating for the investors, there are several reasons to remain cautious of these steep upsurges.
Don’t Get Burned
Bitcoin has experienced spectacular bull runs before this as well. Under no circumstances, such a bull run is indicative of an entirely hurdle-free future trajectory.
Experts observe that bitcoin has sold off at the $12,000 level at least three times in 2020. It happens as miners and whales take out profits. A sustained bull run always attracts a lot of investors who are not well-aware of the price dynamics in the crypto world and are only keen to make some quick profits. The piling up of these overexcited traders is a sign of risk. With the first sign of a healthy drop in prices, which could be a part of the bitcoin trading pattern, these traders resort to panic selling.
Moreover, there is always the possibility of regulatory bodies intervening in the DeFi economy. Given the spread of the cryptocurrency market and Bitcoin’s contribution to it, it would be almost impossible to enforce a blanket ban on trading BTC. But, authorities can seize domains that are centralized. Therefore, it is always an intelligent choice to tread carefully and cautiously in the market during a bull run. There are other ways to put idle crypto holdings to good use and earn sound returns. There are several crypto lending platforms that keep Bitcoin or Ethereum as collateral and issue crypto loans at a very low rate.
Coinrabbit – A Top Crypto Lending Platform
Coinrabbit is one of the top crypto lending platforms which can arrange for instant cryptocurrency loans without any credit checks or registration. There is no restriction on the amount one can borrow and it starts from as low as 30 USDT. Cryptocurrency lending in Coinrabbit carries a very low-interest rate of 5% APR for an unlimited term. The platform also does not charge monthly interests and the borrower can pay all his interest at the time of repayment.
Always be on the lookout for avenues like Coinrabbit which puts your holdings to efficient use. Rushing to make gains from a super bullish market may often prove counterproductive.