The journey of Bitcoin, the largest and earliest crypto, has been full of ups and downs. Since its inception, it has suffered more than 450 failures. But like every time it goes up again and grabs the highs. BTC is proving itself to be a competent coin with high potential. If you want to learn more about Bitcoin mining, here.
Everyone seems to be searching for the term “Bitcoin crash” lately. In the previous year, the cryptocurrency aspect became very popular. We can also note the growth of this industry during this period.
State of the cryptocurrency market
Despite the growth trend in the cryptocurrency industry, we cannot ignore the speed of decline in this market. The cryptocurrency market is slowly falling as the major coins move towards a bearish trend. You can learn about this from various reports.
A recent report by Bloomberg shows that most short-term traders are withdrawing their crypto investments. In addition, the more shocking fact is that long-term traders are also leaving this market.
BTC is facing the latest crash that saw its exchange rate drop to $17,000. This is the lowest interest rate for the coin in the past two years. This fact creates a sense of uncertainty among all investors.
Assuming the “BTC is dead” trend is just around the corner again. That’s what Google Trends data reflects. This downfall seems to be part of the journey of all cryptocurrencies. However, the overall state of the cryptocurrency market is very dire. The performance of this coin is likely to decline further in the period ahead. Along with major cryptocurrencies like BTC, the entire market could face a severe drop. Here, other well-performing coins may experience a similar crisis.
Triggers of the recent BTC crash
The situation with Bitcoin is getting worse every day. You can notice that it’s down 70% from its all-time high in November. The major decline began in March, when the Federal Reserve approved a rise after a three-year run. This proved to be a major factor in the downfall of powerful Crypto assets such as Bitcoin.
Apart from this, several factors also contributed to the recent BTC crash. Some of the other major factors that contributed to this crash were the Russian-Ukrainian war, the Terra crash, etc. Rob Schmitt, the infrastructure provider’s chief operating authority, said several factors contributed to the debacle.
He added that a combination of macro variables such as high interest rates and geopolitical turmoil have sparked pessimism in the market. Furthermore, the collapse of Terra and the bankruptcy of Celsius are another major force behind the massive liquidation of Bitcoin.
Other experts hypothesize that the LUNA crash is pushing BTC towards a crash.
Can cryptocurrencies survive?
Whenever Bitcoin was considered dead in the past, it made a comeback. In this way, it maintains its position as one of the most powerful Crypto assets.
Many indicators predict that BTC will recover from its current state. A leading indicator is the 200-WMA, which can make such predictions. It is one of the most commonly used indicators as an indicator of Bitcoin price. Based on this indicator, we can expect an uptrend for Bitcoin soon.
If we look back at the history of Bitcoin, we will see that it may take a few months or a year for the coin to recover to its good position. While it’s the lowest price out there, we can’t ignore the fact that it’s pretty good.
Experts believe that while Bitcoin’s exchange rate is low right now, it doesn’t mean it will last long. In the long run, we will notice that its adoption and usage will not be affected in the long term. Its growth will continue in one way or another. Overall, it won’t be long before BTC seizes its place as the most used and influential crypto before it.
Source of information: Compiled from THECRYPTOBASIC by 0x information.The copyright belongs to the author Andrew MacGill and may not be reproduced without permission