Bitcoin’s price graph sometimes looks like the jagged edge of a saw, with big jumps up and down. But when there’s a stretch of big losses without any corresponding jumps, investors might wonder: “When will crypto go back up?”
Short-term price predictions are rarely correct. When they pan out, it can be due to luck as to skill. The price of any coin — or anything else — isn’t guaranteed to go up just because it fell from an all-time high. But there are a handful of factors that could cause demand for crypto to rise:
Lower interest rates. The price of riskier investments tends to rise with lower rates.
Reduced threats of inflation (and economic recession).
Big investors getting into crypto investing (such as pension funds).
Federal regulations. Such as allowing individual investors to buy and sell crypto through traditional brokerages they already use.
Wider user adoption of blockchain technologies (including decentralized applications that rely on cryptocurrency).
So what’s an investor…
This article was written by Kurt Woock and originally published on www.nerdwallet.com