As Bitcoin Exceeds US $11,000, People Need to Take Cautions When Investing

Investment experts say price fluctuations and low market capitalization are still risk factors for investors to remain cautious as Bitcoin continues to surpass $11,000.

Experts explain that the latest Bitcoin price boost factor has already affected Bitcoin's half-life of May of next year. A half-life is an important fundamentals with reproducibility that, even with other currency trends, entails a certain period of rise. Generally, it is more likely to be applied as a material to the market than it was half a year ago.

However, as lightcoins, most recently, have recorded a surge of more than 300 percent due to a half-life, they cannot deny being affected by the rise of virtual currencies.

Bitcoin also has recorded phenomenal figures of more than 200 percent rise since the beginning of this year, but it is believed that the inflow of new investors has boosted its purchasing power. However, as many are aware, the reduction in supply of Bitcoin is greatly impacting the market. In other words, prices are rising for about a year before and after the half-life in the trend so far.

However, according to a thorough analysis, the latest situation is also being influenced by external factors. Uncertainty in the international situation due to trade friction between the U.S. and China, and inflation in countries such as Venezuela and India are seen as fugitive assets (safety assets) for Bitcoin.

This means that while there is a reason for the inflow of new money and the price changes similar to fugitive assets and other reasons due to growing vigilance against geopolitical risks, the scope of price changes or low market capitalization still remains, and it is better to remember the limpid part.

Also, past patterns have shown a repeat of the sharp rebound since the surge, with price fluctuations occurring in 2014. Therefore, experts are paying attention to the need for caution on behalf of investors from a mid- to long-term perspective.

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BTC-USD : $ 12,773.00 USD (API by Bitfinex)