After shedding more than 65% in value in the last couple of months, Bitcoin is reportedly making a comeback, with analysts wondering if this will last.
The last year has been horrible for cryptocurrency investors following a staggering 65% drop that the price of a single Bitcoin experienced.
Other crypto-related assets such as Coinbase, Ethereum and NFT collections also plummeted massively, reminding investors that the nascent market will most likely remain volatile in the near future.
There are some who believe that the worst is over for cryptocurrency, following the recent gains that saw several mining firms -- that use computers to solve complex mathematical equations in order to generate new bitcoins -- move sharply higher in the last few days.
According to a report by CNBC, the total market capitalization of crypto assets has fallen to less than $1 trillion from its peak of $3 trillion in November 2021.
Some cryptocurrency investors believe that more drops would happen, which led to the Federal Reserve tightening interest rates to stave off high inflation.
Certified Financial Planner Ivory Johnson, the founder of Delancey Wealth Management in Washington, D.C., advised investors to check their asset allocations and do necessary reviews.
He added in the same report that Bitcoin should just form the smallest part of your entire portfolio of investment, basically around 1% and 5%, to try and escape what has been happening.
The cryptocurrency investment revival could potentially provide validation and hope for greener pastures for the sector's most popular and passionate supporters, according to analysts.
However, some wonder if this new growth will last, given the massive plunge that happened in the last year.