Bitcoin has had a tough performance in 2022 as concerns about interest rates and valuation continue. The coin has dropped by over 54% from its highest point in November 2021 and is now hovering near the lowest level since July. Other cryptocurrency prices have also retreated, pulling the total market cap of all digital tokens to about $1.3 trillion.
Why Bitcoin has retreated
There are several reasons why Bitcoin has struggled in 2022. First, there are concerns about the new normal in global monetary policy. Most central banks have embraced a more hawkish tone this year in a bid to fight inflation.
In the United States, the Federal Reserve has decided to hike interest rates by 0.75% and officials caution that the trend will continue. Most notably, the bank expects to start implementing a quantitative tightening policy in a bid to fight inflation, which stands at a 40-year high.
Other central banks have done the same. The Bank of England has made four rate hikes while the European Central Bank (ECB) will start hiking in July. This is a new normal for Bitcoin since it has existed in a period of low-interest rates.
Bitcoin has also declined because of valuation concerns considering that it was valued at over $1.5 trillion recently. Further, the ongoing regulatory scrutiny and lack of fiscal stimulus by governments have pulled people out of Bitcoin and other risky assets.
Still, some analysts believe that Bitcoin price will bounce back in due time. They cite the fact that Bitcoin has historically been a cyclical asset. For example, Cathie Wood believes that Bitcoin will soar to $1 million by 2030.
Most popular countries in Europe to buy Bitcoin
Europe is one of the biggest markets for cryptocurrencies. The European Union, like in the United States, wants the bloc to be a key place for innovation. As a result, regulators are currently studying the crypto space and coming up with regulations that will protect investors and traders,
As such, many people in the bloc now invest in cryptocurrencies. There are others who have gone ahead to create their blockchain projects such as IOTA and Kadena.
One way to identify European countries where Bitcoin is popular is to use SimilarWeb. A closer look shows that Germany leads in the number of visitors to leading websites like Coinbase, CoinMarketCap, and Binance. This is mostly because Germany has the biggest population in the European Union.
The UK is another European country that is popular in the crypto industry. The country’s regulators have put in friendly policies to ensure that the country becomes a leading player in the crypto industry. Other top countries are Spain, Italy, and France.
Top brokers to buy Bitcoin in Europe
There are several approaches to buying Bitcoin. For example, you can use a decentralized exchange like Uniswap and AAVE to buy the coin. Alternatively, you can use centralized exchanges like Binance and Coinbase to buy cryptocurrencies.
Further, you can focus on brokers, which offer Bitcoin in the form of a CFD. One of the main benefits of using a Bitcoin broker is that it is safe and secure. According to the German website Cryptomonday.de, “einer der Hauptvorteile der Verwendung eines Bitcoin-Brokers ist, dass er sicher und geschützt ist”.
This is translated in English as “one of the main benefits of using a Bitcoin broker is that it is safe and secure”.
eToro is one of the biggest brokers around the world. It is a company that provides thousands of assets like stocks, cryptocurrencies, indices, and forex to millions of traders globally. The broker has a simple-to-use trading platform, has lower fees, and is easily accessible on desktop and mobile devices.
Most importantly, eToro is well-known for the copy-trading solutions that it introduced. These services make it possible for newbie and experienced traders to copy trades from other people.
Plus500 is a large broker that is publicly traded in London. The company provides a complete suite where people can analyze assets and execute trades within a short period. It has easy-to-use trading software, lower fees, and advanced security features. It is a popular CFD broker that is easy to create an account with.
Libertex is a regulated forex and CFD broker that is headquartered in Cyprus. The company provides a diverse package of assets such as stocks, energies, precious metals, and agricultural commodities. Some of the key benefits of using the company are its tight spreads, diverse assets, and friendly customer care officers.
Bitcoin is a leading financial asset that will likely keep doing well in the future. It is also a good asset to trade because of its significant volatility. In this article, we have looked at some of the top European countries in terms of cryptocurrency trading and investing. Also, we have explained why eToro, Plus500, and Libertex are some of the leading brokers for Europeans.