World

Bitcoin falls below $ 30,000, raising fears of another cryptocurrency winter

 

Customers are using an automated teller machine (ATM) at a kiosk in Barcelona, ​​Spain, on Tuesday, February 23, 2021.

Angel Garcia | Bloomberg | Getty Images

The winter story of cryptocurrencies reignited as Bitcoin fell slightly below the iconic price threshold of $ 30,000 on Tuesday. The sharp decline in other cryptocurrencies such as Dogecoin and XRP over the last 24 hours does not help.

However, experts tell CNBC that Bitcoin’s fundamentals are good and that 2021 market conditions are very different from the last major cryptocurrency crash in 2018.

“It’s far from the bear market, and only traders are crazy about the technicals of trading volumes and price behaviors found on exchanges,” said Willy Wu, a popular on-chain analyst and statistician. It was.

What’s happening with Bitcoin

The rise in Bitcoin over the last 12 months has a lot to do with millionaires and businesses buying large amounts of Bitcoin. Increasing interest from mainstream financial professionals not only reformed the image of Bitcoin, but also helped to drive supply shortages and boost token prices.

But since the price of Bitcoin Peak over $ 63,000 During april, The past few months have been tough for the world’s largest cryptocurrency.

A national crackdown on China’s Bitcoin miners is certainly useless.

Also read about Top Forex Brokers

“Recent news about China’s mining cessation is very reminiscent of China every few years. Banks have banned the use of Bitcoin, but this is not the case. Such spills are I’ve never seen it before, “said founder Darin Finestein. Blockcap, one of the largest Bitcoin mining operators in North America.

More than half of the world’s Bitcoin miners are in China, and Beijing has revealed that they want them. May, the government Strict crackdown Bitcoin Mining and trade, what is called the “great mining migration” begins.

“Most of the momentum of Bitcoin’s price decline is due to recent mining movements in China that have led to lower global hash rates,” said Quantum, a specialist in financial market and cryptocurrency research and analysis. Economics analyst Jason Dean said.

“Long-term Bitcoiners see this as a very positive move for the network, but short-term traders are surprised by the uncertainty.”

the current, Index of fear and greed Shows 10 readings indicating “extreme fear”.

“Markets are often driven by momentum that can overwhelm fundamentals, and current sentiment seems to reflect what we are seeing here,” Dean said. ..

2021 vs. 2018

But Dean and others think it’s unlikely that it’s the beginning of the so-called crypto winter. Instead, they predict that we are heading for a period of overreaction that will eventually fix itself.

Matty Greenspan, Portfolio Manager and Founder of Quantum Economics, said: “The industry has far more usefulness, adoption and diversification than in 2014 or 2018.”

Bitcoin bulls claim that Bitcoin’s underlying assets are much stronger in 2021 than in the last bear market in 2018.

“It is the bitcoin blockchain’s decade-long flawless security, the wide range of usefulness of Bitcoin, and the level of adoption that establishes the intrinsic value of Bitcoin,” said a Bitcoin-focused venture. Alyse Killeen, founder and managing partner of the company Stillmark, explained.

The last point is especially important-the adoption of Bitcoin is at a loss, creating and strengthening a broad group of users who believe in the value of the currency.

“The fundamentals of all networks are bullish, and above all, we are always proud of the high growth of new users,” Wu said.

Bitcoin is also recent Locked major upgrade for the first time in 4 years, Promising additional features, privacy, and efficiency.

In the short term, Bitcoin believes that cryptocurrency prices will stabilize at still higher price levels than previous plateaus.

Auston Bunsen, co-founder and CTO of, said: QuikNode provides developers and enterprises with a blockchain infrastructure.

Bitcoin falls below $ 30,000, raising fears of another cryptocurrency winter

Source link Bitcoin falls below $ 30,000, raising fears of another cryptocurrency winter

Back to top button