Bitcoin has never been the same for months since topping $64K back in April.
If you want to buy BTC at the moment, you need to prepare for possible plummets. The leading coin trades about 50% lower than ATH, proving that massive bearishness can dominate the market.
However, most crypto enthusiasts claim that the prevailing prices don’t reflect the situation in the crypto market. They highlight influencers’ FUD, traders’ manipulation, and other notable events in the financial sector. In this context, we will analyze the current market landscape. Moreover, whether price depicts reality and why BTC sees unceasing wild downswings. Let us dig deeper.
Bitcoin has dominated the financial news over the previous few weeks as it approaches geopolitical significance. Strike founder Jack Mallers made a somewhat emotional speech during the BTC 2021 conference. Many considered the remarks vital in the financial world. Nayib Bukele, El Salvador president, has contacted Jack to legalize BTC in the nation. The country did not take much time to accept the bill, thus a massive milestone in BTC’s way towards global presence.
Shortly after, El Salvador’s head of state changed his Twitter picture, depicting lase eyes. That is a sign used by BTC fans that trust in the crypto’s future. Such moves had most Latin American politicians interested in adopting cryptocurrency.
Does BTC Depict Existing Demand
The prevailing BTC prices appear to be low with the bullish updates. Meanwhile, analysts used this time to track movements by other coins. Here are their interesting conclusions:
- Trader liquidation is the reason behind the BTC drops. Most traders tapped into stop-loss targets as the coin started falling, resulting in magnified fear among market participants.
- BTC coins have seen steady moves to older wallets from new ones. That shows that newbies selling to experienced traders are at a loss.
- Bitcoin’s inactive wallet saw almost no moves at the period, an indication of intact conviction. Plunges are natural in bullish markets, even when the losses are drastic contrary to expectations by many.
With that, the prevailing price doesn’t depict BTC’s value and the actual crypto demand.
Potential Reasons behind Low Crypto Prices
- Now, what is behind the low prices in the crypto market? Here are potential clarifications.
- China banned BTC again recently and planning to arrest any individual related to illegal crypto mining deals.
- Elon Musk attacked BTC via his tweets, adding fear, thus the selling tendency.
- US senators are now planning to ban FIAT offramps and onramps as a collective. Such moves saw most nations going against the El Salvador move. That appears to be the final solution as the regulators cannot ban the network.
This last point is vital since it will accelerate transactions made via Bitcoin instead of converting to FIAT first. With that, individuals will deal with satoshis directly, moving to the coin’s standards even quicker.