Your favorite crypto news blog

Bitcoin Might Already Be In A Bear Market, Investors Just Don’t Know It Yet

Bitcoin 2021/07/16 19:00 by Best Owie

Bitcoin has so far enjoyed a good amount of success these past years, and so it is not surprising that investors want to continue to believe that the digital asset will continue its growth spurt. But what could very well be faith in the market might also be a denial of the obvious, which is that bitcoin has finally entered a bear market.

For about two months since bitcoin hits its $64K all-time high, the pioneer digital asset has suffered losses and corrections that have seen the price dip even further down than anticipated. About a month after setting a new price record, the digital asset saw several dips that led to the loss of over 50% of its all-time high value.

Related Reading | Make It Rain Satoshis: Las Vegas Strip Club Starts Accepting Bitcoin Payments

Massive sell-offs have seen the price plummet and with institutions showing more interest in the digital asset, the price has responded negatively. There has not been any remarkable recovery since the asset had fallen below the $30,000 price point last month. And thus, with the current market trends, it is not a far stretch to say that bitcoin might have finally succumbed to the bear.

China Crackdowns On Bitcoin Mining

A major factor contributing to the recent price crashes has been the crackdown by China on mining. The country had banned mining leading to an exodus of bitcoin miners out of the mining capital out of the world. Before the crackdown, it was estimated that approximately 70% of all crypto-mining was carried out in China.

This reduced the bitcoin hash rate to dangerously low levels and thus, affecting the price and increasing panic in the market. With miners still looking for where to set up their operations, the market was very uncertain as to the future of the digital asset. And as such, investors had started getting out of the market.

Bitcoin price chart from TradingView.com

BTC price struggles to recover as bears drag it down | Source: BTCUSD on TradingView.com

Panic selling has also contributed largely to the price dip. Coin holders who did not want to be “caught with their pants down” had started offloading their coins in case the price did not recover.

Whales had also taken advantage of bitcoin’s high price to offload their coins in order to buy back in when the coin dipped. Of note is Jim Cramer saying that he had sold almost all of his bitcoins and had planned to get back in when the price of the digital asset had dipped below $30,000.

What Happens From Here?

Right now, bitcoin sits at a very critical point. The next couple of weeks will most likely decide where the price of the digital asset will end up facing. Market factors right now are looking incredibly bullish as more and more FUD floods the market.

Several countries have begun crackdowns on top crypto exchange Binance, saying that the crypto exchange does not have jurisdiction or permission to operate in their countries. Sadly, this has led to doubts in investors’ minds.

Related Reading | Bloomberg Analyst Provides Blueprint Of Bitcoin Path To $100,000

China, along with the mining crackdown, had ordered all financial institutions in the country to stop allowing crypto purchase and trading. Shutting off one of the biggest crypto markets from the wider crypto space.

Following the massive FUDs coming out of the market, the Fear and Greed Index remains firmly in the extreme fear quadrant. Old and new investors alike are very wary when it comes to putting money into the market for fear of a downturn.

Bitcoin is currently trading at $31,365 and the market cap of the digital asset has now fallen below $600 billion.

Featured image from Coingape, chart from TradingView.com

0 Like(s)

You should also read...

Bitcoin 19/11/19 19:12 by davitbabayan
Fidelity Wins Trading License in New York, Hurray to Bitcoin
Bitcoin adoption on Wall Street is looking real as a $2.8 trillion financial giant wins a license to trade and custody it. Boston-based Fidelity today Bitcoin established a year-to-high of $14,000 in...
Read More
Bitcoin 04/08/20 12:00 by Nick Chong
Peter Schiff Still Thinks Bitcoin Is Going to Crash to $0 Despite 20% Surge
Bitcoin has seen an extremely strong performance over the past two weeks, even factoring in the Saturday flash crash that took BTC down $1,500. Despite this rally, Euro Pacific Capital chief executive...
Read More
Altcoins 08/08/20 00:33 by Bernice Nyambura
Grayscale Says Over 33% of US Investors Are Interested In Bitcoin and Altcoins
Over one-third of U.S investors have shown interest in investing in Bitcoin and other crypto assets, according to the world’s largest crypto assets investments manager, Grayscale. Grayscale said...
Read More
Crypto 14/10/20 18:01 by Brenda Ngari
Russia’s Central Bank Wants To Limit The Amount Of Crypto Unqualified Investors Can Buy Annually
Russia has been at different times hostile, unsure, or inconsistent with its stance on cryptocurrencies. In early August, reports claimed that Russian leader Vladimir Putin had signed a law that lega...
Read More
Crypto 12/01/21 20:28 by Brenda Ngari
Grayscale Investments Reopens The Majority Of Its Crypto Trusts To New Investors
New York-based digital asset manager Grayscale LLC has once again opened its doors to new investors for most of its crypto trusts. The company had paused taking on new investors in late December 2020...
Read More