The world of crypto has experienced something of a steady period. While many of the world’s leading digital assets are nowhere near the highs they achieved in the final months of 2021, it’s good to see that bitcoin, for example – after hitting $19,000 and $20,000 – is flirting with the $22K mark, and other leading assets like Ethereum are beginning to follow suit and hovering at the $1,100 level.
What Is Going on with Bitcoin?
Stephane Ouellette – CFA and founder of FRNT Financial – explained in a recent interview:
At this point, $19,000 to $20,000 is quite simply prior highs from the last major bull market in 2017. The bitcoin and Ethereum futures curves are completely flat, implying that the market is also entirely uncertain of future direction.
While things may have calmed down somewhat in recent days and weeks, there is still a huge possibility that something negative can occur. The crypto market remains as volatile and sensitive as ever, and it looks like it’s still in danger of going down more.
Edward Moya – a senior market analyst at OANDA – explained bitcoin could fall depending on what the stock market does. He also said there are many large crypto companies that could choose to liquidate in the immediate future. If they do that, the asset will likely experience further price dips. He said:
A plethora of bearish crypto headlines continues to drag down bitcoin below key technical levels. Sentiment will take some time to improve, especially after many anticipated crypto deals are falling apart.
The digital currency space is experiencing price fluctuations like never before. While many thought 2018 (four years ago) would go down in history as the worst period for the crypto industry, many are rethinking this position and now view 2022 as the worst possible time for crypto holders.
Bitcoin has fallen from its all-time high of $68,000 (achieved last November) down into the low $20,000 range at the time of writing, and the digital currency industry has lost more than $2 trillion in total valuation. Things aren’t looking good, and analysts have been relatively honest about that.
Joshua Fernando – CEO of e-Carbon – mentioned:
Bitcoin is stuck in its current trading range because of the ‘nervousness’ of market participants. They have seen wild fluctuations in the past few months that have devastated the market, so it is reasonable that they are now trading cautiously.
People Are Panic Selling
He hinted that many people are refusing to hold their assets and keep their stashes intact. Instead, they are panicking and choosing to sell to avoid more losses. He continued with:
Perhaps like equities, investors just got a little carried away in the ‘buy everything’ frenzy of 2021 and are sitting on the sidelines, waiting for signs that equilibrium has been reestablished and the bull market is back on.