Bitcoin is all-set to rise and become the crypto king again, at least for now

In recent weeks, Bitcoin is marching forward towards redeeming its lost market recognition and value. For Bitcoin, the year 2021, was quite successful given the fact that single crypto drove the value of the entire crypto market to new highs. Since this feat, traders and business leaders have been quite optimistic about the prospects of BTC and its dominance in the economic and financial markets. So much so that El Salvador adopted Bitcoin as legal tender! However, BTC's prospects ran their full course, and then came the reality. The prices dropped exponentially. Investor speculation about Ethereum taking Bitcoin grew, making investors and business leaders quite worried about their investments. BTC's price continued to fall in early 2022. Investors turned to assets that performed well in a time of a slowing economy, higher inflation, and rising interest rates, further causing a dive in the Bitcoin price. In late February, BTC prices fell as low as US$36,000, from their November 2021 peak which was US$68,000. Concerns over sustainability and high electricity use associated with Bitcoin mining, and the banning of cryptocurrency transactions in China also caused the Bitcoin price to fall.

Over the past week, Bitcoin has been regaining its value. Analysts believe that the crypto will eventually reach the US$100,000 mark by the end of the year. But as of April 4, 2022, its price has recovered considerably. It finally crossed the US$47,000 mark, reaching as close as possible to US$48,000. The prices consecutively dropped after April 5, 2022, but it continues to soar above US$43,000. This comes off as a positive indication of a possible Bitcoin surge this year. 

Bitcoin is Positive for a Future Surge

BTC's upward trend continued through the entire week, nevertheless, investors are hawkish about its market movements. The coin is trending in recent weeks, but the current surge might also be the result of the Biden government's executive order initiating methods to enhance crypto adoption. But as crypto analysts continue to expect a massive Bitcoin price hike in the near future, key indicators have spoken up. They predict that if Bitcoin fails to break the US$47,000, it might again dive back to a crypto slumber and would eventually, and finally, lose its market dominance. 

As more companies continue to adopt BTC as a method of payment, its value is expected to stabilise. With this expanded room for Bitcoin trading, the market scope is increasing for investors and traders, and other governments, to explore the crypto domain for investments in the long run.

Bottom line

For now, Bitcoin is set for upcoming surges. But the market is still volatile. A price hike does not bring stability to the market. Hence, before investing in Bitcoin, investors should make sure that they are ready for the volatility and mentally prepared to face losses.