Will Bitcoin fall — and if yes, how can I profit?

The crypto market is now on the rise, and the long-term upward trend is very likely to continue. However, there is also evidence that BTC and ETH may lose up to 20% of their price in the short term. This is a normal reaction of the market — and a chance for you to profit not even only by buying the dip.

Let’s say you decide to use crypto lending — you take a crypto loan while BTC is down at, for example, $17,500. This means you leave your Bitcoin for a while (let’s say, 1 BTC) and get some USDT back (9,680 at the current rate). You can now do with your new pack of Tether whatever you like: trade it, withdraw to fiat, buy something, or invest.

Say, you come back to the cryptocurrency lending service to repay your loan next December. By that time, Bitcoin has skyrocketed to $100,000. To get your BTC back, you only have to repay 9,680 Tether plus a small fee. Not only have you preserved your Bitcoin, but it also helped you achieve your goals without being sold!

Why is your loan more stable when collateralized by low-priced coins?

The vast majority of Ethereum and Bitcoin predictions for the long term are bullish — for BTC, 1 Bitcoin to dollar may reach 200K and more. When Bitcoin goes that high, strong price drops (market corrections) are very likely. In case you took a loan when the BTC price was high, this is where you risk losing your collateral: if its price plunges by more than 50%, we will have to sell it (50% is the loan-to-value rate in our crypto lending program).

Such a scenario is of a very low probability now: Bitcoin and Ethereum are at the start of a significant bull run, and almost no one is expecting their prices to collapse much below the current level. But they are likely to drop by 15–20% soon — a great time for you to catch your loan!

What is the current Ethereum and Bitcoin price prediction?

Bitcoin has settled around $19,000 and faces a strong resistance level up there. If the bulls manage to get over it, the first crypto value can rise to $21-$23K soon. But the bears won’t go down without a fight — market signs show they may drop Bitcoin down to $17,200 in the upcoming weeks.

Ethereum has also been stable at around $600 for the past week. Buyers are strong and if they push the price above $620-$630, it may skyrocket further to $800. But the market is ambiguous, and sellers are also active — plunging to $490 in the short term is possible.

How to make money with Bitcoin?

The easiest answer to this is — simply buy it and hodl. However, in many life circumstances, we need extra funds for various expenses, but withdrawing Bitcoin for these purposes feels like a lame idea. Cryptocurrency lending platform CoinRabbit helps you use your coins without selling them. And with the possible upcoming market correction, it feels like a nice time to profit from this opportunity — try now and make the most of your Bitcoin!

Originally published at https://coinrabbit.io.




Fast, reliable and simple crypto loans

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

G4G Coin: A fantastic crypto-based project that will aid in the economic and technological…

Why the Hi Dollar is Going to Make New Millionaires❗️AND IS FREE ❤️

Pious Fraud

Bit Digital miners turned off in the US due to an explosion at a substation

Welcome to Recap AMA IgniteCrypto & HighStreet #AMASeries

NFTs are an emerging investment class, just not how you might think

The WISLab development team at Guangzhou University of Technology successfully connects the LOGIN…

The SuperCycle: Never, or Just Not Yet?

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store


Fast, reliable and simple crypto loans

More from Medium

What is EverOwn? | Everrise


The different kinds of rebrand & what they mean for your business

The Rise of Ethereum