The Current Bear Market in Crypto
MN Trading CEO and founder Michaël van de Poppe recently commented on the current bear market in crypto, comparing it to the bear market witnessed in 2015. He noted that it is a period of sideways action, leading to a loss of faith in crypto despite solid fundamental growth.
Key Points:
- BTC prices are down 62% from the previous peak, signaling a prolonged bear market that has lasted for 490 days.
- Possible reasons for the extended crypto winter include the impact of the pandemic on economies, high-profile crypto collapses, and surging interest rates.
- BlackRock, the world’s largest asset manager, is bullish on Bitcoin and crypto, with major institutional investment expected.
- Other factors such as a pivot to crypto in Hong Kong and Asia and the approaching Bitcoin halving are not currently being reflected in the market’s price.
- Bitcoin’s price has remained relatively stagnant around $26,000, with volatility and volumes dwindling.
Hot Take: While the current bear market may be disheartening, there are several factors that suggest a potential turnaround. Institutional investment from companies like BlackRock and positive developments in Asia could contribute to a bullish cycle. However, it’s important to consider the lag between these events and their impact on price. Patience and a long-term perspective may be key in navigating the current market conditions.
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