The belief that the price of Bitcoin may soon recover is still quite low, as nearly 50% of Bitcoinist's recent respondents think that the price is likely to fall further to a lower level in the future.
Confidence in Bitcoin no longer follows a sharp fall
Confidence in Bitcoin is currently quite fragile, as nearly half of all Bitcoinist survey respondents believe that the market will continue to sell strongly and miners will continue to leave. The expectation that Bitcoin price could slide to the lower threshold is extremely large.
However, what led many investors to believe that prices could plunge to $ 3,200? At the time of writing, the price of Bitcoin was not really far from the above price, after BTC once touched the threshold of $ 4,000. And after the latest recovery, not many people believe that the recent rally can be sustained. Expert Mike Novogratz from Galaxy Digital said:
"Bitcoin is a game of faith, so is cryptocurrency. And when global confidence in anything is seriously reduced, BTC is not out of that spiral. "
One of the reasons Bitcoin exists so far is the trust of the entire community. But now that confidence is not maintained and the world economy is in danger of plummeting. Therefore, the pressure on the price of Bitcoin is immense.
Bitcoin ended the day of stability
In the past year, it's easy to see that Bitcoin price is quite stable, but 2020 witnessed the expected price increase from 7,000 to 14,000 USD. After just a few hours, the Bitcoin price quickly fell off the aforementioned price range. Analyst Josh Rager said he had not seen any positive signs that cash flow was returning to Bitcoin.
A big part of $ BTC selling off is due to a panacked marketplace where traders are looking to get into cash
That same cash isn't going to be flowing back into Bitcoin anytime soon
So unless stocks rally, or you convince your entire town to buy Bitcoin
Don't expect a rally soon
– Josh Rager 📈 (@Josh_Rager) March 14, 2020
“Unless the stock market bounces back, or you can convince your entire village to buy Bitcoin, don't expect a rally.”
Recently, there was a time when the Dow Jones plunged nearly 2,000 points, causing the cryptocurrency market to follow suit and quickly evaporate. The current plunge is systematic and extremely dangerous with leverage forms like futures. The arrival of the whales also makes the confidence of a long-term rally somewhat diminished. Instead, BTC became the place where the cash flow soon came and also soon drew.
Despite these problems, a positive sign is that the market has not shown signs of a simultaneous withdrawal of miners when the hashrate index remains above 110.10 ^ 30 hashes per second. Accordingly, the upcoming halving will be a very powerful reagent for the whole system, when mining will not be as profitable as before with the block reward being split in half.
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According to Coin68 / Bitcoinist