On August 28, Michael van de Poppe, CEO and founder of MN Trading, said that the current bearish market is relatively comparable to what we saw in 2015.
He added that this was essentially a period of sideways action, where faith in crypto is also slowly being lost, “despite the fact of solid fundamental developments.”
bitcoin bears are sticking around
The BTC price is currently down 62% from its previous peak, which was almost two years ago. Therefore, the bear market lasted 490 days, much longer than the bottom of the previous cycle.
There are several possible reasons why the crypto winter has lasted so long in this cycle. An unprecedented pandemic has ravaged the world, prompting governments to impose lockdowns that do no harm to economies and livelihoods.
Furthermore, several high-profile crypto collapses in 2022 created a huge backlash from regulators eager to crack down on the industry.
Rising interest rates have also hammered the world’s battered economies and provided low-risk returns for investors, but have also added to the mountain of debt.
However, it is not all doom and gloom. BlackRock, the world’s largest asset manager, is keen on bitcoin and crypto, holding stakes in major mining companies and applying for a spot ETF. Analysts expect such a product to be approved this year, which would mean major institutional investment.
There are other fundamentals too, like Hong Kong and the pivot of crypto to Asia and the bitcoin halving. Analyst said:
“The thing is, during the current period, these events are not reflecting on the price at all. They lagged because the market is stuck in ‘Bear Market Modus’ as prices have been falling for the last 2 years.
BTC Price Outlook
Bitcoin barely held the $26,000 price level over the weekend. At the time of writing the asset was stable at $26,045 on the day.
Since the 10% drop on Aug 17, it has found a new support area for consolidation. Volatility and volumes are coming down again, so things may remain this way for a while.
Moreover, after an extremely quiet weekend, the total market cap during the Asian trading session on Monday morning stood at $1.09 trillion.