Bitcoin smiles on the horizon from DailyCoin

Fear is in the air: Bitcoin smiles on the horizon

  • Bitcoin’s price reflects the Fear and Greed Index
  • On July 1, Bitcoin’s hashrate will be reset, which historically has had a positive effect on the price.
  • The activity of the addresses surpassed that of Bitcoin for the first time in history.
  • The current price action is still sidelining the institutional and private interest in cryptocurrencies and other cryptocurrencies.

Traditional word of mouth tipsters like the media and your taxi driver are no longer giving you suggestions on how to buy and trade Bitcoin. Enthusiasm for cryptocurrencies is waning as Bitcoin fell below the $ 30,000 psychological resistance level before recovering. Still, volatility is a label for cryptocurrency that is nothing new to investors. The Chinese exodus, coupled with environmental concerns, brought Bitcoin to a standstill and fueled fear among investors.

Investor sentiment is shaken

The Fear and Greed Index is below 25 despite the bull’s attempt to increase the value of Bitcoin. Plan B, a crypto analyst, presented a poll that compared disagreements every 3 months. The new result shows that 41% of people think Bitcoin will stay below $ 100,000 this year, compared to 16% who shared their views in March when Bitcoin was still $ 55,000.

Jim Cramer, a CNBC analyst, said he sold “the bulk of his bitcoin” and even reduced his crypto holdings before the negative developments were over. Bitcoin cannot perform currency functions as it is pushed as digital gold, but the possibility of higher financial gains attracts investors.

The Chinese exodus has fueled investor fears, data from Glassnode shows; Miners are turning to Bitcoin sales to fund their moves. Similarly, Glassnode points out that Bitcoin’s losses total $ 3.45 billion in a week, prompting investors to cut their positions fearing a steeper downtrend. The falling hashrate and restrictions imposed on Chinese miners forced the owners to sell BTC to keep their business going.

One time and one place

Ethereum challenges Bitcoin as a safe haven for investment. Ethereum’s total active addresses surpassed Bitcoin’s for the first time in history. Still, Bitcoin is a lucrative asset as a hedge against inflation. As Jim Cramer argued, the current negative sentiment around Bitcoin will encourage further regulatory action.

However, the SEC commissioner had already announced that he would draft a regulatory framework for cryptocurrencies. In contrast to this, regulatory requirements will only benefit the cryptosphere, as they can “exploit their network potential” and increase mass acceptance. Popular crypto retailer CryptoShark, with over 134,000 Twitter followers, argued that the downside of mass adoption “gets a whole wave of totally inexperienced crypto traders bringing with it volatility”.

As it stands, volatility is less of a concern than lack of initiative from traders. Bill Noble emphasized that volatility is “going nowhere” and experienced investors are aware of it. Still, the trading volume is well below the regular threshold, indicating a lack of security on the part of traders.

On the downside

  • The introduction of cryptocurrencies is taking place at the corporate level, with Visa (NYSE 🙂 hiring 5 members for their crypto team.
  • The B-Word event, sponsored by Jack Dorsey, is building business views on how Bitcoin can be more widely used and integrated.
  • El Salvador offers simpler and cheaper mining solutions after introducing Bitcoin as legal tender in the country.

There’s sun in crypto after the rain

Investment bank Morgan Stanley (NYSE 🙂 has filed a report with the SEC regarding the purchase of 28,000 shares of the Grayscale Bitcoin Trust. However, one report highlights that institutions have not yet committed to scooping Bitcoin at a discount. What’s more, retail investors have been looking for a locale on Reddit to avoid Bitcoin and other cryptocurrencies.

In the past, Bitcoin has seen downturns and even persistent bear markets, with market inactivity stalling crypto expansion. Institutional acceptance is far greater than it has been in the past, and blockchain technology is more a reflection of what our society deems necessary. Price drops are a systematic development in the crypto space.

Among the negative results, Bitcoin and other cryptocurrencies can gain an advantage. In a Twitter message, Bitcoin writer Kyle Torpey expressed that “the global consensus may be wrong in the short term”. A shakedown, similar to that in May, shakes off weak hands that are only rewarded by speculation. Instead of viewing Bitcoin’s current state as inconvenient, it cuts off the unwanted noise of meme coins and allows developers to increase the overall performance of the network.

EMAIL NEWSLETTER

Join in to learn the downside of crypto

Update your inbox and receive tips from our DailyCoin editors straight to your inbox once a week.

[contact-form-7]

You can unsubscribe at any time with just 1 click.

Read on on DailyCoin

Comments are closed.