The craze for crypto has been fading in recent months with bitcoin posting losses for three consecutive months through July. Based on the history of the crypto market, this price correction is the longest since September 2019.
Plus the profit for the first half of 2021 is only able to record 20%. This is the lowest profit figure for the same period since 2018. Previously the crypto market has increased by 27% and 187% in the first half of 2020 and 2019. In H1 of 2018, the price of bitcoin has dropped 58%.
Among the factors driving this was a statement coming from Tesla CEO Elon Musk and a crypto ban move from China. China had ordered all Bitcoin mining operations to be stopped last June due to concerns over energy consumption.
After a massive price spike in the crypto market with Bitcoin reaching an all-time high of $ 64,804.72 in early April 2021, the BTC price has dropped by 50% to a level below $ 30,000. This has worried many investors so much so that some of them have temporarily retired from the crypto world.
Based on data released by Glassnode, the 7 -day moving average of active BTC ‘addresses’ in the network has reached its lowest level since April 2020, reflecting the fall in demand for digital assets.
On the other hand, BTC’s profit for H1 was also lower than WTI’s crude oil return which had risen more than 50% to $ 73, on June 30, 2021.According to experts, the recent fall in bitcoin prices presents an opportunity for investors to buy crypto at a lower cost.
According to Shivam Thakral, CEO, BuyUcoin, smart investors are those who buy during a price correction. Strict action by China, U.S. monetary policy, mining sanctions by Iran, and regulatory uncertainty in some countries are some of the factors contributing to the decline in prices. However, we are still optimistic about the crypto market because crypto other than BTC is still showing an increase.
Industry players partly argue that although there is short -term negative sentiment such as coming from China there is still positive sentiment such as the move taken by El Salvador.
According to a CoinDCX spokesperson, we are still positive about the long -term prospects of bitcoin. At the same time, it is important for investors to remain vigilant by keeping an eye on 'support' and 'resistance' in the short term.
The BTC price has so far traded at $ 33,331.09, down 0.48% in 24 hours.
