Bitcoin experienced a sharp fall in January, falling below $7000 for the first time since November. Staunch supporters of the cryptocurrency space claim that January always brings bad news for Bitcoin, but the digital currencies end up picking up pace later in the year.
Experts told CNBC today, Feb. 7, that the total market cap of all cryptocurrencies could reach $1 trillion and that BTC itself could hit $50,000 by the end of this year. This speculation brings in a massive sentimental boost to everyone who's looking to invest in cryptocurrencies.
Jamie Burke said, "We believe after February the market will likely go on a bull run comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in where the market becomes more focused on proper market fundamentals.”
However, experts are also worried that people are investing into Bitcoin and other altcoins simply to become billionaires within a fortnight - without enough research into the particular coin. Ignorant investments are unhealthy for the cryptocurrency market, because the minute these individuals see a slight dip in the price, they sell off their crypto-assets, and this sell-off sets off a snowball effect.
Cointelegraph has urged the public to perform extensive research before participating in the trade of digital currencies. Only invest in these coins if you believe that the technology behind them is going to massively improve the world.