Bitcoin has hit $ 40,000, don't forget the potential risk that it will fall again

image source : screenshoot from coindesk

We know that bitcoin has shown great performance at the beginning of 2021. The price has reached more than $ 40,000 and is even predicted to continue to increase in the future. The purchase of bitcoin by big companies at the end of 2020 such as MassMutual which is one of the largest insurance companies in the USA buying up to $ 100 million of bitcoin is one of the reasons why the price of bitcoin has risen so quickly. However, we certainly need to pay attention to the potential for a bitcoin crash in order to avoid losses like in 2017.

Bitcon is still unstable We need to realize that bitcoin is an unstable asset. Even though the price has increased sharply at this time, it does not mean that there is no chance that bitcoin will not experience a crash like in 2017. Even though there are different perceptions regarding the indicators of bitcoin increase in 2017 and this year. Where in 2017 the increase in bitcoin price was better than a lot of market speculation than buying on the basis of the trust that bitcoin was one of the safe heaven as it is today. However, the perception of bitcoin as a safe heaven can change at any time. One that might be the trigger is the regulations that will foster tightly. Yes ... one of the reasons why bitcoin is loved until now is the less regulatory control over it and that is also the reason why bitcoin was created, so if the regulations are strict on bitcoin, the privilege of bitcoin will also decrease or disappear.

The victory of Joe Biden The United States presidential election has been dramatic in recent times, and interesting to watch lol... Even though in the end, Joe Biden was still the winner. In addition to the interesting donald trump drama action, we also need note that the victory of Joe Biden, who comes from the Democratic Party, might have a lot of influence on bitcoin. The fact that the democratic party is known as a party that likes to make regulations is one of the points that we must pay attention to. it has also been conveyed by Melten Demirors, head of strategy at CoinShares in several media. As quoted from Bloomberg...

"In general, I think we're going to have a challenge from the Democrats, they like more regulation, and more oversight,"

The decision of several large companies and central banks to consider bitcoin, it would make many regulations for sure. Of course we don't have a problem if the regulation will benefit bitcoin or other cryptocurrencies, but we need to pay attention to the regulation that will hinder and make bitcoin like fiat money which is strictly regulated by regulations. Of course this will encourage investors to release their bitcoins.

Janet Yellen image source : https://www.politico.com/news/2021/01/01/yellen-made-millions-in-wall-street-speeches-453223

We know that Janet Yellen who is the former chairman of the United States Central Bank has been rumored to be the new finance minister in the era of the Joe Biden government. And the fact that in the past few years she has been seen as a counter against bitcoin has indicated that the possibility of regulation that controls bitcoin is very likely. so wait and see...

So guys what do you think about the chance bitcoin's price?, does it still keep rising or not ?

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