Bitcoin drags the entire cryptocurrency market to record highs 😳💸

As you may well know, if you have read this article; Bitcoin is once again the talk of the town, and the fact is that the leading cryptocurrency in the sector has broken the ceiling it created in 2021, therefore, it is currently at record highs. Specifically, the whopping amount of $68.000.

Why Bitcoin Moves the Crypto Market?

For investors and those curious about the world of cryptocurrencies, the following question always comes up: why is it that whenever the price of Bitcoin goes up, the price of all other cryptos goes up.

As the first and most well-known cryptocurrency, it exerts a significant influence on the market for several key reasons:

1. Market dominance: it has historically held a dominant position in the cryptocurrency market in terms of market capitalization and public recognition. Needless to say, it is the Cryptocurrency par excellence. As a result, movements in its price often have a direct impact on overall market sentiment.
2. Trend Indicator: Bitcoin’s price is often used as an indicator of the overall health of the cryptocurrency market. When it experiences a price increase, it can be interpreted as a sign of renewed confidence in the market as a whole, leading investors to increase their positions in other cryptocurrencies as well.
3. Psychological effect: Bitcoin is widely regarded as “digital gold ” and a store of value in the cryptocurrency world. When its price increases, this generates a feeling of FOMO (fear of missing out) among investors, prompting them to seek other investment opportunities in the crypto market in an attempt to make similar gains.
4. Shared liquidity: As Bitcoin and other cryptocurrencies are interconnected through cryptocurrency exchanges, a large number of investors and traders use Bitcoin as a means to enter and exit the cryptocurrency market. Therefore, movements in the price can generate trading activity in other cryptocurrencies as investors diversify their portfolios or seek arbitrage opportunities.

In short, the price of Bitcoin acts as a barometer for the cryptocurrency market as a whole, and movements in its value have a direct impact on perception and investment activity in other cryptocurrencies.

Market Opportunities

Bitcoin

The myth of “don’t buy on uptrends”, or your brother-in-law who downloaded eToro because he wanted to make $10 on the buddy plan, saying “How are you going to buy now when prices are sky high? You’ll have to sell”….

All this is false, and is that any investor who acts with knowledge and head, can generate profitability in the short, medium or long term, whether the market rises, as if the market falls.

It seems that the price of bitcoin will continue to rise according to studies by analysts of this digital asset. It would not be a bad option to wait for a fall in price to buy and sell in a correction, if your intention is to trade, or buy now waiting for the prophecies that bitcoin will one day reach $100.000 to come true. Of course, you will have to have a lot of patience and courage, because of the highly volatile price of this cryptocurrency.

Other Cryptocurrencies

It is a great time to bet on BNB, the value of this asset has increased in recent months by more than 100%.

Binance has played its cards taking advantage of the uptrend in the cryptocurrency market caused by Bitcoin and has launched Launchpool on its platform. A system that rewards you if you have in your Binance wallet its token, BNB.

The system consists of “rewarding” you every so often with fractions of cryptocurrencies that are being withdrawn.

Personally, we have had 1 BNB for a year and we have earned in a few months more than 40€ in rewards from Binance Launchpool.

Another possibility to generate short-term profitability could be to speculate with highly volatile meme cryptocurrencies such as $PEPE which has risen almost 800% in the last month. If you had invested $10 in $PEPE 2 months ago, today you would have $80. That’s really crazy.

Selling or Buying?

As already mentioned, you can generate profitability by acting intelligently in both buying and selling in any type of market. Logically you will make more money if you bought in November 2022 when the market was at rock bottom, and sell now. But do not be afraid, you are not late, if you act with head and knowledge.

Between selling and buying, both go the same way, the market is breaking all limits and it can be an advanced moment to sell or your own, who knows; and a great moment to buy, or bad….

The decision is yours and that’s why you can earn so much money and so few people do it, because to win you have to dare.

Opinion

Personally we are somewhat conservative, which is what has led us to be profitable in both our stock plan and our trading plan; so we will wait for the market to show signs of a change in structure to try to sell as high as possible.

Disclaimer:

The content provided above should not be construed as an investment recommendation. The cryptocurrency market is highly volatile and investments in this market carry significant risks. We are not responsible for any loss or damage that may arise as a result of the information provided. It is recommended that you conduct thorough research and consult with a financial advisor before making any investment in cryptocurrencies.