Bitcoin's recent performance: not up to par compared to past few years
Bitcoin's recent performance has not been entirely commendable. Compared to the price trend over the past few years, BTC has not done well.
It is not entirely clear what the future holds for Bitcoin. The token has been stuck in a bearish grip for the past year, and it does not seem to be making any major moves in the near future. This could mean that the market is not yet ready for Bitcoin, or that the token simply is not as valuable as it once was. Only time will tell what the future holds for Bitcoin.
With the extreme crypto winter in the first half of the year, the entire market has been on edge. The collapse of the algorithmic stablecoin Terra and its ecosystem created a more devastating blow to the price of Bitcoin. BTC lost over half of its value with the crypto market, and its market cap went down.
The year started off rough for Bitcoin, but there was a glimmer of hope in the second half. The price of Bitcoin started to increase, but this was short-lived as the bears took over the market again. However, there is still hope for Bitcoin and its price may rise again in the future.
BTC hovers around $19K level
It is clear that the crypto market is highly volatile and prone to sudden changes. This was evident when Bitcoin prices suddenly dropped after hitting a new all-time high. While the exact reason for the decline is not known, it is likely that it was due to a combination of factors, including a general downtrend in the market and profit-taking by investors.
The cryptocurrency market is notoriously volatile, and Bitcoin is no exception. After a sharp drop to around $18,556 the previous day, BTC has rebounded 9% to trade at $20,186. While this is still a far cry from the highs of over $40,000 seen in early January, it's a sign that the market is still alive and kicking. Who knows where prices will go next?
Bitcoin prices yet to show strong rally
It is true that Bitcoin has not received a lot of positive recommendations from industry participants, but that does not mean that the token is not valuable or that it will not sustain or increase in value. Some analysts may be bearish on Bitcoin, but that does not mean that a more bullish trend is not possible.
Alexandre Lores, director of blockchain markets research at Quantum Economics, recently declared his stance on BTC in a telegram message. Lores stated that he is generally hostile to all risk assets at present due to macroeconomic factors. Bitcoin is not exempted from this influence.
I believe that the BTC price market is influenced by a variety of factors, including the Russian-Ukraine war, the force from Europe and US ESG, and the Federal Reserve's stance on interest rates. Additionally, the post-COVID effects are also likely to play a role in the market's movements.
Craig Erlam, senior market analyst at Oanda, believes that predicting further price rises is unnecessary at this point. Instead, he is focused on the possibility of a spiral in the BTC price pattern, citing a similar event that occurred in 2020.
With the impressive reclaims in the equity markets as of Wednesday, it is clear that the market is on an upwards trend. This is good news for tech stocks such as S&P 500 and Nasdaq, which have seen an increase of up to 2%. This trend is likely to continue in the coming days and weeks, so investors should keep an eye on these stocks.
