Why the Bitcoin Don't Start Recovering Faster

The Bitcoin price is a complex asset and volatility is a part of the game. The cryptocurrency's supply has fallen steadily from its high of almost eight million in January 2016 to just four million in December 2017. New regulatory measures by the U.S. government have also contributed to the recent drop. The US Securities and Exchange Commission has rejected a proposed spot bitcoin ETF. The US market is now stronger against cryptos than it has been in the past year.

Investing experts and financial advisors advise against sinking too much of your money into cryptocurrency. In fact, you should prioritize your investments. Pay off high-interest debt and build an emergency fund before sinking your entire savings into cryptocurrency. As the supply of bitcoin rises, demand will continue to rise. Once the maximum limit has been reached, the bitcoin price will continue to fall. That's why it's crucial to have a balanced portfolio that consists of a mix of traditional assets and new digital ones.

Although cryptocurrency prices are volatile, there are a few reasons why cryptocurrencies might recover faster. Many crypto enthusiasts see it as an investment and a hedge against the instability in the financial markets. A recent report by Noble, an investment advisor at Bankrate, compared the price decline in bitcoin to the stock market crash in 1987. While bitcoin recovered from the stock market crash in a few months, equities took months. So, the cryptocurrency market may recover faster than the equities market did.