On August 28, Michael van de Poppe, CEO and founder of MN Trading, claimed that the current bear market is fairly similar to what we experienced in 2015 and will likely persist for some time. He also stated that the current bear market is similar to what we witnessed in 2015.
In addition, he mentioned that it was essentially a period of sideways activity, during which people's faith in cryptocurrencies progressively decreased "despite the fact that solid fundamental growth."
Bitcoin Bears Are Here to Stay
The current price of Bitcoin is 62% lower than its all-time high, which was reached almost exactly two years ago. As a result, the bear market has continued for a total of 490 days, which is significantly longer than the duration of prior cycle lows.
Several different factors could have contributed to the longer crypto winter this cycle. A pandemic of unparalleled proportions has wreaked havoc across the globe, compelling governments to implement emergency measures that have wreaked havoc on economies and ways of life.
In addition, several notable cryptocurrency exchanges went bankrupt in 2022, prompting a significant reaction from authorities keen to crack down on the industry.
The rise in interest rates has had an effect on the battered economies of the world and has offered lower-risk returns for investors, but it has also added to the mountain of debt that has been accumulated.
But things are better than they seem at first glance. BlackRock, the largest asset manager in the world, is bullish on Bitcoin and other cryptocurrencies. The firm has holdings in major mining businesses and has applied for a spot ETF. Analysts forecast that such a product will receive regulatory approval this year, resulting in significant institutional investment.
Other fundamentals exist, such as a shift toward cryptocurrencies in Hong Kong and Asia and the impending halving of the Bitcoin supply. An additional comment from the expert was as follows: "The thing is, during the current period, these events are not being reflected in price at all." They are behind the curve since the market is in a "bear market modus," meaning that prices have declined for the previous two years.
Future Value of Bitcoin
The price of Bitcoin hardly moved at all throughout the weekend, holding relatively unchanged at about the $26,000 mark throughout the period. The asset's value, which was $26,045 the last time we checked, has remained the same as when this article was written.
As a result of the 10% decrease that occurred on August 17, a new support zone for consolidation has been established, and the price is currently trading at that level. Things may remain the same for some time, given that volume and volatility are trending in opposite directions.
In addition, the overall market cap stood at $1.09 trillion during the Asian trading session on Monday morning, after a very quiet weekend in terms of market activity. This was the case following the previous day's European trading session.
){kind=link}
0 Comments