The panic regarding Bitcoin is progressing more and more in the cryptocurrency market. A huge number of investors no longer know what the trend will be in the very near future, whether Bitcoin will grow or go into a deeper correction. Enthusiasm for Bitcoin is increasingly declining, since recently Bitcoin has already fallen below the psychological level of $30,000, and various calls from the Middle Kingdom and a complete ban on cryptocurrencies in China have instilled panic in the institutions.
At the moment, the fear and greed index is already below 30 percent, despite the futile attempts of various holders and crypto banks to increase this level, we are talking in particular about Michael Saylor.
Already about 45% of people believe that Bitcoin will remain below $100,000 this year, and when the digital asset was trading near its historical highs, namely $65,000, only about 15% only thought that Bitcoin would not break the $ 100,000 milestone.
Bitcoin is not able to perform all currency functions, it is quoted as digital gold, but the possibility of speculation, financial enrichment and accumulation of their savings attracts various investors, both large players and small ones. After the news from China, it is clear that the situation will remain in limbo for Bitcoin for a long time.
Bitcoin losses amount to up to $4 billion a week, which encourages various investors and speculators to panic and sell their bitcoins, because they are no longer able to be on pins and needles with regard to an even larger collapse of Bitcoin.
Also, the second largest crypto asset in the world, Ethereum, always breathes into the back of Bitcoin. Already this year, a new proof-of-stake protocol is due to be released, which will be even better, even faster and even more reliable, so many investors will prefer to choose a safer haven in the face of Ethereum than to risk their fortune and be in a suspended mood by buying Bitcoin.
At the moment, the volatility that is constantly going toe-to-toe with Bitcoin is less worrying than the lack of initiative on the part of investors.
For years, Bitcoin has experienced both recessions and falls, there were very protracted and prolonged bear markets, but when there was a lack of initiative on the part of traders, this led to a halt in the development of the cryptocurrency, because the price drop itself is a periodic and cyclical phenomenon in the crypto arena.
The material has been provided by InstaForex Company - www.instaforex.com