Second day into the month of July and Bitcoin failed to breach resistance at the $20,000 mark, slipping to the lows of $19,000. The damage caused to major cryptocurrencies – Bitcoin and Ethereum – in the past month is billions of dollars. And July also seems to be apathetic. Over the past two months, the volatile crypto market has seen BTC prices extreme movements ranging from $32,000 – $17,500.
At the time of writing this article, Bitcoin was down by2.08%. It’s trading at $19,184. In the past seven days, the popular cryptocurrency has lost nearly 10% of its value. Ethereum, on the other hand, is desperately trying to hold onto the crucial $1,000 mark. It’s changing hands at $1,044. In the past seven days, Ether has lost 14.11% of its value.
A sense of nervousness has set into the crypto market. There have also been predictions about the demise of the burgeoning asset class. But investors, who have been with cryptocurrency since the beginning, believe the new bear market is just another forest clearing fire. They are optimistic that it will lead to a healthier ecosystem.
It should be noted that traders, primarily focused on Bitcoin’s spot price, are lamenting the fact that it’s not performing as the inflation hedge they had wished it to be. Scott Melker, an independent market analyst, says Bitcoin’s performance largely depends on the country and economic state of where an individual lies. The most loved cryptocurrency may be down significantly in terms of US dollars, but when compared to countries like Venezuela or Nigeria, Bitcoin has offered people to opt-out of the current financial system.
Crypto Jebb, a crypto market analyst, highlighted Bitcoin as thermodynamically sound. This means that the digital asset is holding on to the energy that is put into the system, and doesn’t leak it out in inflation. Melker pointed out that the adoption of Bitcoin is faster than the internet and it’s a hockey stick curve – going parabolic.
There is still hope.