Bitcoin’s Price Is Increasing Once Again. Is This A Good Time To Invest?

<p>Will it rise and begin its day, or will it yawn and return to sleep for a few more years?</p> <p>Since early November 2021, when it reached an all-time high of $69,00o, bitcoin's price has been declining. Since then, it has fallen as low as $33,503 on January 24th. However, the price has continued to rise since then. Today, on the 8th of February, it is priced at $44,155.</p> <p>So, will Bitcoin's price continue to stabilise (or increase)? Is Bitcoin about to plummet even further (to say, $10,000 per Bitcoin, as one prominent investor predicted last year)? Or is this all in good fun in an infamously unpredictable market?</p> <p>To begin, let us consider why it may have declined. To begin, it should be noted that crypto has a natural cycle in which investors tend to sell shortly after assets reach record highs (which Bitcoin did in November).</p> <p>Even before this new decline began to take hold, the market displayed warning flags in hindsight. Forbes reported on December 3rd, 2021, that Bitcoin and other cryptocurrency prices had plummeted, wiping off over $300 billion USD from the total crypto market in just two days.</p> <p>Bitcoin had recently reached a high of $69,000. As a result, it lost around 30% of its worth at that point, and about half of its value over the next few weeks, until January 11th.</p> <p>Following Bitcoin's decline, other popular tokens experienced significant declines, including Ethereum, Binance's BNB, Solana, Cardano, and Ripple's XRP.</p> <p>However, why did Bitcoin's value plummet?</p> <p>The December 2021 Bitcoin price collapse coincided with some significant stock market dips, as well as a warning from prominent investor Louis Navellier that Federal Reserve tapering could burst the Bitcoin and crypto bubble.</p> <p>"The Fed is tapering, which should result in a correction in risk assets, including Bitcoin," Navellier stated in a December essay published by Business Insider.</p> <p>"The more tapering the Fed does, the more volatility we should see in stocks and bonds—and