Friday, June 21, 2024

The Bitcoin price is struggling to find its feet, but BTC fundamentals give traders hope.

In its usual fashion, Bitcoin prices have swung wildly in the last few months. In spite of this, crypto traders are confident that prices will go up due to factors like the futures and other features which show no stress.

This discussion and speculation about the future are due to the sudden drop in Bitcoin’s price on January 10, 2022. Bitcoin prices dropped below $40,000 for the first time in close to six months and resulted in alarm bells to traders. That particular week, $1.9 billion worth of futures contracts were sold off and trader morale took a nosedive.

In the crypto world, a “Fear & Greed” index which measures the pulse of the trading world, was its lowest since 2020. This index is a good indicator of trader sentiment and uses metrics like market momentum, Bitcoin volume and dominance, historical trends in volatility, etc.

This steep price drop offered a great buying opportunity to many because market capitalization rose by 13.5% to 2.1 trillion in under 3 days. Economic data released by the US government showed that retail sales dropped by 1.9% in December 2021 over the previous month.

Investors and experts worry that the markets may be experiencing stagflation where inflation numbers keep rising in spite of stopped economic growth. Even if this proves that Bitcoins are scarce, markets are bound to invest in assets that are considered safe. It is a wait-and-see approach for many and traders are buoyant. They believe that BTC is a fundamentally strong crypto.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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