For new investors in the crypto market, Bitcoin shares are recommended for entry instead

The Bitcoin price experienced a drastic downward movement in the early morning hours of March 3, causing it to drop to around $22,000 in a very short time.

This confirmed one forecast in particular: namely the forecast that the Bitcoin course was about to make a directional decision. The cryptocurrency has trended about 4 percent weaker over the past 24 hours of trading, marking the biggest bitcoin sell-off so far this year. An event that many investors could not count on.

While this should hardly change anything in the strategy for professional investors, it is somewhat different for new investors: For new investors in the crypto market, Bitcoin shares are recommended for entry instead of investing larger amounts of money with whole Bitcoins.

Brief overview of the latest developments

• Over $62 million in long BTC positions were liquidated in a matter of hours.

• This was the third liquidation cascade within the last 12 months: after the Terra crash and the FTX bankruptcy in 2022.

How to proceed now? Forecasts are extremely difficult. Some talk of a clear oversell, which should level off again. On the other hand: Negative funding rates currently give the buyer camp a high incentive for a new entry into Bitcoin.

A temporary price recovery is expected by many investors and the positive signs on the US stock market shortly after this Bitcoin crash underline this scenario.

Overall, the situation for the Bitcoin course will remain uncertain in the coming weeks and months. Analysts see both positives and negatives that can affect price. Investors should therefore follow developments closely and adjust their investment decisions accordingly.

Correction with a short shock?

Despite the recent price correction and negative headlines, the fundamentals of the Bitcoin network remain stable. Network activity shows that the hash rate, which measures the total computing power on the proof-of-work network, continues to rise.

The hash rate has almost doubled since November 2021, although the price has fallen significantly over the same period of time. The number of active addresses on the Bitcoin network has also increased despite the current market situation, indicating growing demand and usage.

Fundamental data as the most important variable? The positive fundamental metrics of the bitcoin network could soon push the price higher again. Also, the…