25. September 2021

Bitcoin bubble: No bubble in Bitcoin? – We clarify!

Bitcoin bubble yes or no? The cryptocurrency is popular among investors and investors, but by no means uncontroversial. Especially in 2017/2018, the Bitcoin bubble burst, because within a very short time, the price climbed many times over from more than 1,000 euros to over 18,000 euros. After the rapid rise, however, it immediately went downhill again and traders had to accept heavy losses. Whether and when it can come to renewed bubbles in Bitcoin, show the observations on the market. With the help of price analysis and the consideration of the news situation, traders can recognize new bubbles more easily.

Bitcoin bubble: does the BTC bubble exist and when will it burst?

BTC bubbleMany experts hardly believed Bitcoin had much potential as a cryptocurrency when it was launched in 2009 and underestimated the opportunities for investors and investors. In 2009, Bitcoin started as an unknown new way to conduct transactions and hardly anyone knew anything about blockchain or a cryptocurrency until then. In the first years, the uncertainty or skepticism was clearly noticeable, because the price of Bitcoin hardly moved significantly. Those who mustered the courage to invest in the first few months were able to purchase Bitcoin at a price of USD 100, for example. As can be seen from the further price developments, this decision was particularly profitable, because Bitcoin advanced to become the insider tip for traders and investors in 2017 at the latest. For example, the all-time high was reached on December 17, 2017 at more than 18,000 euros. An increase in value that hardly any other asset can show here.

Bitcoin when does the bubble burst or did it never exist?

Anyone who goes on a media search for clues about Bitcoin will find countless press reports, not all of them always positive. Often, the headlines read similarly, such as “Bitcoin bubble burst”; “When will the Bitcoin bubble burst?” This mainly refers to the months in 2017/2018, when the price of Bitcoin reached enormous heights in a very short period of time. For example, there was a price increase since the end of May 2017 from over 1,000 USD to over 18,000 euros by December 2017. Hardly anyone could explain at that time why the cryptocurrency suddenly made this enormous price development after a slumber of years. Therefore, many experts spoke of the Bitcoin bubble, which then also burst in February 2018.

Bitcoin when will the bubble burst?

Bitcoin, after its years of existence in the shadow of the major fiat currencies, finally came into the light in 2017 and was used by many investors and investors. This naturally increased demand, which drove up the price. After all, Bitcoin’s maximum coin quantity of 21 million is not yet in circulation, so it took time to generate the coins, and this also prevented demand from being satisfied. Since the crypto market is also regulated by supply and demand, it is hardly surprising that Bitcoin made this huge price increase. Conducive to this development was the great financial crash, which unsettled investors and plunged major banks into crisis. Therefore, many investors and investors were looking for safe alternatives, which they believed to find in Bitcoin.

The big bang with a downturn in 2018

After traders were able to become bitcoin millionaires overnight with a profitable sale as the price rose, there was payback for investors just a few months after the all-time high was reached, as the price fell incessantly since the all-time high, reaching a low of over USD 8,000 within a few weeks in February 2018, for example. Shortly thereafter, the uptrend resumed, but it lasted only briefly. What followed were the volatile market movements that eventually culminated in another price drop in December 2018, which lasted until April 2019.

Bitcoin was worth between 3,000 and 4,000 USD on average within this timeframe, which is of course still a lot compared to other cryptocurrencies – but in relation to the all-time high of over 18,000 euros, an enormous loss. At that time investing felt more like gambling with one of the casinos listed at Casino Btc. Many traders sold their coins during the Bitcoin crash out of fear of a further price loss, which of course could lead to enormous losses.

However, those who brought along some patience and survived the supposed crisis until March 2019 were able to enjoy price gains. Since then, the Bitcoin price climbed unceasingly until the summer of 2019. At the beginning of July, it even reached a value of over USD 11,000 again, so that many experts assumed the development of a new Bitcoin bubble. However, unlike the former bubble in 2017/2018, the market conditions are significantly different, so we would not identify a bubble in Bitcoin with a view to price analysis and market sentiment.

How does bubble formation occur in the crypto market?

How do traders actually recognize a Bitcoin bubble? Not only in the crypto market, but also in other markets, the phenomenon of bubble formation occurs again and again. In this case, the increasing demand as well as the speculation on the coins stand out over a longer period of time. This drives the price (artificially) up, but this does not work indefinitely. Every upward trend has an end at some point and leads to a downward trend, so it comes to the fact that the Bitcoin bubble bursts.

Negative reports cause Bitcoin price to fluctuate

The bursting of a Bitcoin bubble or the sudden drop in the price can be caused by various reasons. Bitcoin is particularly susceptible to press releases or general news about economic and political aspects. The cryptocurrency itself is not uncontroversial in many countries, so that governments even repeatedly report banning Bitcoin and Co. Such reports naturally create uncertainty among investors and investors, which is not infrequently reflected in a drop in demand. Therefore, the price may change within a very short time and, for example, the price may drop drastically. The same applies to reports of hack attacks, because Bitcoin in particular has often been the victim of cyberattacks in the past. Hackers actually managed to crack Bitcoin wallets and steal coins worth millions. This was also felt by the drop in demand from investors, which was accompanied by a drop in prices.

Use Bitcoin bubble for own trading success

Is it possible for traders to use the Bitcoin bubble for their own benefit? There are several trading strategies that traders can use to take advantage of the developments in the crypto market. For example, when the Bitcoin bubble bursts, there are significantly lower prices, so traders can buy Bitcoin cheaply. Those who have the patience and can also hold the coins in the wallet for a longer period of time can, at best, profitably sell Bitcoin later. However, due to volatility, there is no guarantee that another trend reversal will happen soon after the bubble bursts. In fact, traders are asked to be patient here and wait until the market offers new opportunities. At some point, the trend will turn around again, that is the Bitcoin experience with a view to the chart development.

Use Bitcoin bubble for expensive selling

If traders already have Bitcoin in their wallet, they can of course take advantage of the bubble. If the demand for the coins increases, experience shows that the prices also rise. This is exactly the ideal time for traders on the crypto exchange to sell their Bitcoins. This is possible, for example, at a fixed price or at the dynamic market price. If you want to make it particularly easy for yourself, you can set a fixed price and make the offer available on the exchange (similar to the Internet action platform eBay). How long a buyer’s bid takes depends on the respective market situation.

Secure bitcoin even effort – get out of the way of price movements with faucets

Traders who want to trade actively on a crypto exchange will have to deal with the price developments and analyze them. Not everyone wants to take on this effort and still profit from Bitcoin. This is actually possible, because with the help of Bitcoin Faucets, traders have the opportunity to receive coins for free without the provision of computing power or other monetary inputs. The principle is comparable to bonus offers or renovations for the activity of the users. On the Faucet platforms, which can be available either as a website or mobile application, users are asked for their opinion and take part in surveys or test games and other applications, for example. In return, they receive small amounts of Bitcoin as a reward.

Earning BTC with Faucets and accumulating them in the Wallet

The micro Bitcoin amounts are regularly paid out to the wallet when the users have earned the coins through their activities. However, it may take a bit longer to actually have a larger amount in the wallet that is actually worth trading. Resourceful users can, however, be registered with several Faucets at the same time and thus collect significantly more micro-coins at once. This makes the activity much more efficient and also allows the desired larger amount of coins in the wallet to be reached more quickly.

Bypass excitement about Bitcoin

Bypass excitement about BitcoinMany traders are naturally concerned with the investment and investment opportunities around Bitcoin as well as other cryptocurrencies. Those who do not want to expose themselves to this stress actually use Bitcoin as what the currency was originally designed for: a decentralized means of payment. In the meantime, more and more stores and other providers are making it possible to pay bills with Bitcoin. This is an important step into the future of Bitcoin. If users have already collected Bitcoin in their wallet, they do not necessarily have to trade them on a crypto exchange, but can actually use them as a means of payment.

Bitcoin or fiat money?

The advantages of Bitcoin as a means of payment are mainly that users have a decentralized and fast settlement. Nevertheless, Bitcoin is far from uncontroversial, because there are of course always price fluctuations, so that the equivalent value can also differ significantly when paying. When paying with fiat money, users have much more transparency. This is because they can see the invoice amount and then pay by credit card, bank transfer or electronic purse, for example. The advantage is that those who choose to pay with fiat money use service providers that are almost always available anyway. Almost everyone has a credit card or bank account these days. The situation is different with the Bitcoin wallet, because anyone who wants to use the cryptocurrency as a means of payment must not only have the wallet, but also coins in it.

Bitcoin no bubble

There are countless brokers where trading Bitcoin and other cryptocurrencies with various financial instruments is possible. For example, traders can invest in CFDs, securities or funds and thus flexibly use the price trend. Contracts for difference, for example, are suitable for all investors who are oriented towards the short to medium term. Securities and funds, on the other hand, are best suited for the long-term investment horizon. It is important that traders observe the market and select the financial instrument that suits their trading strategy. For traders who are willing to take risks, contracts for difference in particular are a good way to make handsome profits with little equity and the leverage, although there is no guarantee of this, as CFDs are among the high-risk derivatives to boot.

Bitcoin shares for long-term horizon

Brokers, however, also offer investors the opportunity to invest in company shares related to the crypto market and especially regarding blockchain technology. For example, investors can purchase the shares of Bitcoin GROUP SE or trade securities of mining hardware manufacturers. Due to the implementation of blockchain technology in numerous industries and business sectors, the possibilities are almost unlimited, which is particularly advantageous for the greatest possible diversification in the portfolio. However, traders can often also trade the crypto stocks CFDs, for example, to compensate for short-term price losses in the securities and thus improve the overall balance for the portfolio.

Conclusion: Use Bitcoin bubble through clever trading

Bubbles repeatedly form in the markets, as was evident in the financial market during the banking crisis, for example. The Bitcoin bubble was also evident in 2017/2018, although the cryptocurrency hardly resonated with investors and investors until then. However, the rising demand was triggered by the previous financial crisis, as many banks lost billions and plunged their investors into a crisis as well. In search of alternative trading opportunities, many traders eventually came across Bitcoin, so demand skyrocketed and so did the price.

Within a short period of time, the price climbed to an all-time high of more than 18,000 euros on December 17, 2017, but only a few hours after reaching this quotation, the price went downhill again and the Bitcoin bubble burst. Those who interpreted a Bitcoin price forecast correctly were able to generate profits from these fluctuations and also take advantage of the crisis. Traders can use the volatile market situations to become active on the crypto exchange or trade Bitcoin CFDs at the broker (even with leverage).