Fear is in The Air: Bitcoin Smiling on the Horizon

Traditional word-of-mouth tipsters like the media and your taxi driver no longer give you suggestions on buying and trading Bitcoin. Enthusiasm about cryptocurrencies is declining, as Bitcoin fell below the psychological resistance level of $30,000 before bouncing back. Still, volatility is a label of cryptocurrency, which, for investors, is nothing new. The Chinese exodus coupled with environmental concerns brought Bitcoin to a standstill, inciting fear in investors.

Investors’ Sentiments are Shattered

The Fear and Greed Index is below 25 despite the bull’s attempt to increase Bitcoin’s worth. Plan B, a crypto analyst, presented a poll result comparing differences in opinion 3 months apart. The new result shows that 41% of people consider Bitcoin will stay below $100K this year, compared to 16% who shared their views in March, when Bitcoin was $55,000.

Jim Cramer, a CNBC analyst, stated he sold “most of his Bitcoin,” even diminishing his crypto holding before the negative developments concluded. Bitcoin cannot perform currency functions, as it’s being pushed as digital gold, yet the possibility of higher financial gains attracts investors.

The Chinese exodus fueled investors’ fears as data from Glassnode shows; miners resort to selling Bitcoin to fund their relocations. Similarly, Glassnode underlines Bitcoin losses sum up to $3.45 billion in a week, prompting investors to cut their positions short, fearing a steeper downtrend. The declining hashrate and restrictions imposed on Chinese miners, forced holders into selling BTC to sustain their business.

A Time and a Place

Ethereum challenges Bitcoin as a safe haven for investments. The total active addresses of Ethereum surpassed that of Bitcoin for the first time in history. Still, Bitcoin is a lucrative asset as a hedge against inflation. As Jim Cramer argued, the current negative sentiment surrounding Bitcoin will promote more regulatory actions.

However, the SEC commissioner already declared it would draft a regulatory framework for cryptocurrencies. In contrast, regulatory impositions will only benefit the crypto sphere as they can “fulfill their network potential” and increase mass adoption. The popular crypto trader CryptoShark, with over 134k Twitter followers, argued the downside of mass adoption “is getting a whole wave of completely inexperienced crypto traders who bring volatility.”

In the current state, volatility is less of a concern than a lack of traders’ initiative. Bill Noble highlighted volatility is “not going anywhere,” and veteran investors are aware of that. Still, trading volume is far below the regular threshold, indicating a lack of assurance from traders.

On the Flipside

Cryptocurrency adoption is taking place at an enterprise level, with Visa (NYSE:V) hiring 5 members to their crypto team.
The B Word event promoted by Jack Dorsey forms business opinions on how to make Bitcoin more used and integrated.
El Salvador is offering easier and more cost-effective mining solutions after it adopted Bitcoin as a legal tender in the country.
There is Sun in Crypto After the Rain

Investment bank Morgan Stanley (NYSE:MS) filed a report with the SEC stating their 28,000 share purchase of Grayscale Bitcoin Trust. However, a report highlights institutions are not yet committed to scooping Bitcoin at a discount. More so, retail investors have sought a locale on Reddit to shun Bitcoin and other cryptocurrencies.

Historically, Bitcoin has experienced downturns and even prolonged bear markets, where market inactivity put crypto expansion to a halt. Institutional adoption is far greater than in the past, and blockchain technology is more reflective of what our society deems necessary. Price slumps are a systematic development in the crypto space.

Among the negative outcomes, Bitcoin and other cryptocurrencies can realize an upside. In a Twitter message, Bitcoin writer Kyle Torpey expressed that “global consensus can be wrong over the short term.” A shakedown similar to what happened in May shakes off weak hands that only seek rewards from speculations. Instead of viewing the current state of Bitcoin as unfavorable, it does cut off the unwanted noise of meme coins and allows developers to increase the overall network performance.

Sourse: investing.com

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Category: News | Views: 89 | Added by: danyagames2007 | Tags: #Bitcoin #Bitcoin Price #BTC | Rating: 1.0/1
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